Who is responsible to pay WSIB
- Thread starter Gord M
- Start date
bubba-one
Site Supporter
15
If a driver get incorporated and he is the sole director - he can opt out of workers comp. If he decides to split income with his wife and she is not a director, he can be held liable for the cost of her WSIB at a trucking rate - even if she can't drive a truck.
If you are looking to see if you can do this to avoid WSIB - when it is you who sets the hours of work, place of work, pays fuel, maintenance, etc. Are you truely an independant???
If you are looking to see if you can do this to avoid WSIB - when it is you who sets the hours of work, place of work, pays fuel, maintenance, etc. Are you truely an independant???
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lowmiler88
Site Supporter
30
You would need the contractor to give you proof of some kind of insurance coverage and that WSIB agrees that he/she can opt out of WSIB coverage. If you don't you would be responsible for any payments missed, fines and if the driver is hurt they would still go on your WSIB. Remember it is your resopnsibility to make sure any outside insurance policies are always active if you leave it up to the driver you will loose.
Being incorporated has nothing to do with it. Do not confuse WSIB with Revenue Canada - 2 different animals.
To be deemed "independent" by WSIB there is a generally accepted formula for owner operators. It is simply that they own their own vehicle, pay for all repairs, fuel, licences and any other operating costs. You are best to initiate a seperate disability insurance plan and make the owner/operators participate. The cost will be much lower than WSIB.
To be deemed "independent" by WSIB there is a generally accepted formula for owner operators. It is simply that they own their own vehicle, pay for all repairs, fuel, licences and any other operating costs. You are best to initiate a seperate disability insurance plan and make the owner/operators participate. The cost will be much lower than WSIB.
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WSIB & CRA have seperate rules regarding this subject. Bottom line is you can not hire drivers as independent contractors when they operate YOUR equipment. WSIB considers them employees, CRA may not pursue this type of working relationship but WSIB will. Also, if you are paying a driver as a contractor and that driver fails to pay income tax CRA can and will hold your company liable for his personal taxes as they will consider him an employee. Penalties and interest will also apply. Be very careful with this approach. Best answer is that if the driver does not own the tractor he is considered an employee, if you have O/O with drivers ensure the O/O has registered with WSIB and is up to date with contributions. We do not release O/O pay without a current WSIB certificate. Good Luck!
The only time it can work is if the driver owns a legitimate "driver service". And the only time they will consider him self employed is if he has several accounts, not just you. You can pay him by invoice without deductions but you will still need a WSIB clearance certificate since he will be deemed an outside contractor.