Coverage – Directors
Effective date: November 1, 2014
Application: Applies to 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, T4A or T5018 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.
(1) February 1, 2021. T4A or T5018 added to carried on payroll definition in accordance POL 12/2020, Employer Coverage and Registration.
(2) January 1, 2015. New policy. For new accounts, effective November 1, 2014. For existing accounts, effective January 1, 2015.
POL 09/2011 Failure to Register a Business
POL 12/2020 Employer Coverage and Registration
POL 03/2014 Coverage – Personal
POL 13/2020 Independent Worker Coverage
POL 07/2002 Coverage Within Saskatchewan – Out of Province Employers
POL 08/2020 Maximum Assessable Wage Rate
POL 24/2010 Assessable Earnings