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If you hire on a contract basis, WCB of Manitoba can deem that person to be an employer, an independent contractor or your employee. The status can affect your company’s WCB obligations. Sometimes, failure to understand WCB’s rules can result in cost increases and penalties that you did not anticipate.
In contract-based industries such as construction, trucking, logging, janitorial and tow trucks, anyone you hire on contract that adds value to your goods or services will be deemed your worker if they are not registered with the WCB as an employer or independent contractor with personal coverage.
If your business is not in the above industries and you hire on a contract basis, you should ask WCB to determine the person’s status.
Generally, if the person you hire employs workers over the annual minimum earnings level of $24,060 in 2018, or works primarily within their own business establishment, that individual will not be considered your worker. If these criteria are not met, the person must pass the Independent Business Test. WCB considers many factors, including whether or not the person:
When the person does not pass the Independent Business Test, WCB deems him or her your worker regardless of your industry.
If someone is deemed your worker, you must include the labour portion of the contract with your company’s payroll. Deductions from earnings to offset WCB premiums are prohibited. Any WCB claims by your deemed worker will be assigned to your firm’s claim experience.
When someone is deemed your independent contractor, you must:
Access the system by:
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