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

Under the new policy, a director who is reporting employment income on a Canada Revenue Agency T4 income tax slip is considered a worker and is required to have WCB coverage.

This change is 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 becomes effective on November 1st 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 employerservices@wcbsask.com or call our office toll free at 1-800-667-7590.

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2017-05-11T20:42:28+00:00 Oct 22, 2014|Comments Off on Mandatory Coverage for Directors of a Corporation