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Sask WCB introduces costly policy change for Directors

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Recently the Sask WCB approved a policy called “Coverage – Directors” (Policy 14-2014). This is a new policy that requires mandatory coverage for all directors carried on payroll.

As of January 1, 2015, an active Director who is reporting employment income on a CRA T4 is considered a worker by Sask WCB and is required to have WCB coverage. However, Directors who are not active in the business (do not perform any day-to-day tasks or duties for the corporation) are not required to have mandatory coverage. Prior to this change, only Directors that had regular, pre-determined payroll were subject to mandatory coverage. See Sask WCB Director's Policy Q&A.

Other provinces provide much more flexibility. In Manitoba, a Director of an incorporated business is not required to report themselves as an employee, but can purchase optional coverage. Alberta also does not require Directors to register, but like Manitoba offers optional coverage if they want it.

Raising your concerns: CFIB sent a letter to WCB raising our members’ concerns and recommended the Board revisit this policy.

Note: *There are no changes to coverage for sole proprietorships or partnerships.

For more information, contact [email protected] or call the WCB office toll free at 1-800-667-7590.

Not sure how this affects your business? CFIB Business Counsellors are available to assist CFIB members. Please call our office at 1-888-234-2232 or email [email protected].

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