Document name

Assessable Labour Amount of Contracts

Document number

POL 21/2025

Principal means any person, association or body that hires a contractor. Principals are considered employers.

Contractor or subcontractor means a business or individual hired under a contract for service by another business or individual and can be present in all industries.

Contract means any work within the scope of the Act undertaken by a contractor or subcontractor for a principal.

Contract for service, also referred to as a principal-contractor relationship, is where a business or individual provides labour services, which may involve the use of equipment, materials, or tools to another business or individual on a contract basis in return for a monetary amount.

Worker is a person who has entered into a contract of or for service, written or oral, expressed or implied, and includes:

• A learner,
• A member of a municipal volunteer fire brigade,
• A secondary or post-secondary student who is enrolled in a program which is giving training or work experience and is recognized by the minister,
• A contractor,
• Any person who is considered to be a worker by the Board, and
• Any other person prescribed in the regulations.

1. Every employer in a mandatory or covered industry shall register with the WCB by submitting a statement of payroll when starting operations and annually thereafter (Section 122 of The Workers' Compensation Act (the Act) and Sections 3 and 4 of The Workers’ Compensation General Regulations, 1985).
2. A contractor is considered to be a worker of the principal unless they are eligible for and choose to purchase optional personal coverage (Section 131 of the Act).
3. If the owner of equipment, who is not an employer or does not have their own Workers' Compensation Board (WCB) coverage, enters into a contract with a principal, they are considered a worker of the principal (Sections 8(2) and 8(3)) of the Act).
4. An employer cannot deduct WCB premiums from workers or contractors, except in cases where a contractor, who does not have their own WCB coverage, owns/leases and operates equipment or hires another person to operate that equipment (Sections 8(4), 164 of the Act).
5. The Act directs that the WCB set a maximum assessable wage rate for each year (Section 137(2)).

1. A contractor is considered a worker and therefore premiums must be paid to the WCB.
2. A principal who contracts for services in Saskatchewan must report their contractors to the WCB when registering for a WCB account and when completing their annual Employer's Payroll Statement.
3. The principal is required to report the contract amount and labour type for each contractor.
4. The principal must report the exact labour amount of the contractor, if known.
5. If the principal does not know the exact labour amount, the WCB will use a schedule of labour types and corresponding labour percentages to determine the labour amount of contracts.
6. When a principal hires a contractor, the principal pays the contractor a negotiated contract amount for the work performed, which generally includes the contractor’s wages and overhead (e.g., equipment, materials, tools, etc.). Only the labour amount of the contract is considered as assessable earnings and is utilized when determining compensation benefits.