Directors Policy Information


Recently the WCB advised you of an important policy change: All directors who report employment income on a Canada Revenue Agency T4 tax slip are now considered a worker and are required to have WCB coverage.

 We have received inquiries from corporations who pay directors who are not active in the business. Please see the list of questions and answers related to this policy.

We recognize that there are directors who receive a T4 but are not active in their corporation. Inactive directors do not perform any day-to-day tasks duties for the corporation and are strictly receiving a wage for their investment or other purposes. Directors who are not active in the day-to-day activities of a corporation are not required to have mandatory coverage

This change was effective January 1, 2015. Any changes to coverage for directors can be made on the annual Employer’s Payroll Statement (EPS). All EPS Forms are due February 28!

The policy became effective on November 1st, 2014 for new businesses that register on or after that date. Coverage for directors who are reporting employment income will be mandatory immediately. Coverage is optional for directors who are not reporting employment income.

Any firms operating in a mandatory industry that are not registered with the WCB but are reporting employment income on a T4 slip for a director will need to register for coverage.

Please register online as soon as possible to avoid late registration penalties.

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

For more information, contact or call our office toll free at 1-800-667-7590.

Directors Q & A (PDF)