Policy
Schedule 1 and Schedule 2 employers must
See also, 14-02-15, Voluntary Registration.
Purpose
The purpose of this policy is to outline WSIB registration requirements for employers.
Guidelines
Definition of employer
An employer is a person who has carried on, or is carrying on, a Schedule 1 or Schedule 2 business activity on a compulsory basis or by application.
The employer is the person in law who is responsible for the business obligations and liabilities to the WSIB. The employer is responsible to pay the worker and is liable to pay WSIB premiums, non-compliance interest and charges etc. The employer is also the person who is obligated to any injured worker for such purposes as, reporting work-related accidents, work reintegration, re-employment, etc.
Employers include persons who do not employ workers, i.e., independent operators (and partners without workers) who have obtained optional insurance, as well as deemed employers in construction, see 12-01-06, Expanded Compulsory Coverage in Construction.
NOTE
Some employers are engaged in the taking of contracts to complete T4s for their clients as an administrative service. These service employers, who do not actually supervise their clients’ workers, are not considered by the WSIB to be the employer of the workers named on the T4s. These employers are thus not obligated to pay WSIB premiums on behalf of the workers named on the T4s.
General
In the following guidelines, the terms classification, classification unit (CU), payroll, insurable earnings, premium, and work location apply to Schedule 1 employers only.
Who must register?
All Schedule 1 and 2 employers must register, including
Out-of-province employers sending workers into Ontario should contact the WSIB for registration requirements. Similarly, Ontario employers operating in other provinces should contact the workers' compensation boards in those provinces for their registration requirements.
Others who may register
Those who are not required by law to have coverage, i.e., employers whose operations are not in industries listed in Schedule 1 or 2, independent operators, sole proprietors, partners, and executive officers, may apply for coverage. To do so they must register with the WSIB. See 12-01-02, Employer by Application and 12-03-02, Optional Insurance.
NOTE
For information on coverage and classification, see 12-01-01, Who is an Employer, 12-01-04, Schedules 1 & 2, and 14-01-01, The Classification Scheme.
Status declaration requirement - Construction
At the time of registration, or if an individual's status changes, individuals who operate their business on their own, as sole proprietors without workers or as single officer corporations, without workers, will be required to submit a status declaration to confirm their status as an independent operator.
For more information about compulsory coverage and who qualifies as an independent operator in construction, see 12-01-06, Expanded Compulsory Coverage in Construction.
Employer non-compliance
Employers who fail to meet all WSIB registration requirements are subject to non-compliance interest, charges and/or prosecution, see 14-02-07, Employer Non-Compliance Interest and Charges, and 22-01-08, Offences and Penalties - Employer. For adjustments in premiums, see 14-02-06, Employer Premium Adjustments. Under certain conditions, an exemption from such non-compliance interest, charges and/or prosecution is available.
See, 14-02-15, Voluntary Registration.
Employers who are not required to have coverage but choose to apply for it must submit registration documents, etc., but the registration time restrictions do not apply to them.
Legal & financial responsibility
The legal employer name on the completed registration document identifies the person who is legally and financially responsible for all WSIB obligations and liabilities.
Setting up accounts
When the WSIB registers employers it also assigns them an account. Accounts are assigned to the legal employer as defined above. Transactions between the employer and the WSIB take place by account.
The WSIB determines the effective date of each account.
An account can represent, individually or in combination, any of the following
Multiple accounts
Most employers have only one account, but they may have more than one. Multiple accounts for Schedule 1 employers are subject to the following conditions
All accounts registered by one employer are linked to ensure that the financial liability for each account is identified with the legal employer. See 12-01-01, Who is an Employer?, and 13-02-02, New Experimental Experience Rating Plan (NEER).
NOTE
Employers with operations in the construction industry (Class G of Schedule 1) may only have one account per rate group.
Closing accounts
For information on closing accounts, see 14-02-05, Closures.
Authorizing changes
Authorization for changes to data and reporting requirements that affect the employer's financial obligations must come from the employer or the employer’s authorized representative. See, 21-01-02, Authorization of Employer Representatives Regarding Employer Information. When someone other than the legal employer authorizes changes to data and reporting, as allowed by the WSIB, and the employer defaults on a payment, the legal employer and not the person signing is liable.
Application date
This policy applies to all decisions made on or after November 4, 2013.
Document History
This document replaces 14-02-02 dated November 4, 2013.
This document was previously published as:
14-02-02 dated January 2, 2013
14-02-02 dated October 29, 2007
14-02-02 dated October 12, 2004
14-02-02 dated January 31, 2002
14-02-02 dated June 15, 1999
08-03-02 dated October 28, 1996.
References
Legislative Authority
Workplace Safety and Insurance Act, 1997, as amended
Sections 2(1), 12(7), 12.2, 12.3, 74, 75, 78, 79, 141(2), 151, 151.1
Schedule 1, Schedule 2 (O.Reg. 175/98)
Minute
Administrative
#10, March 22, 2016, Page 533