Document name
Employer Accounts – Clearances and Letters of Good Standing
Document number
PRO 22/2014

Effective date: January 1, 2015

Application: All principals and contractors.

Policy subject: Employer payroll and premiums

Purpose:

To outline the process for issuing clearances and letters of good standing.

BACKGROUND

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POL 22/2014, Employer Accounts – Clearances and Letters of Good Standing, establishes the guidelines for requesting and issuing clearances and letters of good standing.

PROCEDURE

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  1. A clearance or letter of good standing may be requested by a principal or contractor online (www.wcbsask.com), or by contacting Employer Services by fax, telephone, or email (employerservices@wcbsask.com).
  2. Prior to beginning work, a letter of good standing may be requested to advise the principal of the status of a contractor’s account with the Workers’ Compensation Board (WCB). The letter of good standing will provide one of the following statuses:
    1. OK – the contractor’s account is in good standing.
    2. Deemed – the contractor is not registered with the WCB and they will be considered a worker of the principal, or
    3. Denied – the contractor is not in good standing.
  3. Before making payment to a contractor for work completed, a principal is required to obtain a clearance. The clearance letter provides the principal with the following statuses:
    1. Cleared – the principal is authorized to pay the contractor for the work completed.
    2. Deemed – the contractor is not registered with the WCB and is considered a worker of the principal, or
    3. Hold – the contractor’s account is not in good standing.
  4. When a clearance letter with a “Hold” status is issued, Employer Services staff will notify the contractor to bring their account into good standing. The principal will be notified of any updates on the status of the contractor’s account and should not issue payment until WCB advises the status is cleared. If the contractor fails to bring their account up to date, the WCB may request that the principal issue payment directly to the WCB from the funds owed to the contractor.
  5. Where a clearance is not obtained prior to making payment to a contractor:
    1. The principal will be responsible for premiums relating to the labour portion of the contract up to the amount outstanding on the contractor’s account.
    2. The premium charged to the principal’s account will be calculated based on the contractor’s experience rate, and
    3. The premium charged will remain on the principal’s account and interest will accrue until the payment is made.

 

Policy references

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Legislative Authority

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The Workers’ Compensation Act, 2013

8, 20, 131, 132, 148, 159, 164;

The Workers’ Compensation General Regulations 17;

The Workers’ Compensation Miscellaneous Regulations 3 (e)(i-iii).

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Document History

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n/a

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Complements

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