Coverage – Directors
Effective date: November 1, 2014
Last updated: September 2, 2014
Application: All directors.
Policy subject: Employer coverage and registration
To establish guidelines for determining the coverage of directors.
Director, also referred to as an executive officer in The Workers’ Compensation Act, 2013 (the “Act”), means a person chosen to control or govern the affairs of a limited company or corporation and who is registered as a director of that corporation.
Carried on the Payroll means the employer is reporting employment income and taxable allowances or benefits on the Canada Revenue Agency T4 income tax slip.
- Under Section 2(1)(ii) of the Act, “an executive officer of an employer, if that executive officer is carried on the employer’s payroll,” is considered a worker.
- Section 32 of the Act states an employer is deemed to be a worker where the employer carries themselves on the payroll, reports themselves as a worker on the payroll statement mentioned in Section 122 of the Act, and includes their estimated wages.
- Under Section 14(1) of The Workers’ Compensation General Regulations, 1985 (the “General Regulations”), “every executive officer of a corporation who is not on the company’s pay-roll... may make application to the board for elective personal coverage.”
- Section 14(2) of the General Regulations states, “every executive officer of a corporation who is not on the corporation’s pay-roll is deemed to be a worker when under contract to a principal and the earnings in respect of their services, as the board may determine, are assessable on the principal’s account unless ordered otherwise by the board.”
- A director of a limited company or corporation who is carried on the payroll is considered a worker under the scope of the Act.
- The employer is required to report to the WCB the assessable earnings for all directors carried on the payroll up to the maximum assessable per calendar year being reported.
- Where a director of a limited company or corporation is not carried on the payroll, they may apply for personal coverage.
- A director who is not active in the business is not considered a worker in the scope of the Act and coverage is not required. An inactive director is someone who does not perform any duties relating to the day-to-day operations of the corporation.
Act Sec #
Act Sec #
The Workers’ Compensation General Regulations 12 and 14.
For new accounts – 01 November 2014.
For existing accounts – 01 January 2015.
Print or share this page with others