Automatic coverage

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Learn who is automatically covered by workers’ compensation and who is not.

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Who is automatically covered by workers’ compensation?

  • All workers in mandatory industries. There is a change to wage replacement after age 65. Learn more about earnings loss benefits.
  • Directors that report employment income on a Canada Revenue Agency T4 income tax slip. Any firms operating in a mandatory industry not registered with the WCB but that are reporting employment income on a T4 slip for a director will need to register for coverage as soon as possible to avoid late registration penalties. The policy became effective on Nov. 1, 2014 for new businesses that register on or after that date. Please see the list of questions and answers below related to this policy.
  • Contractors working for a principal are covered.

Who is not covered automatically?

Those who are not covered automatically may be able to apply for voluntary coverage or optional personal coverage.

A director who is not active in the business is not considered a worker in the scope of the Act and coverage is not required. An inactive director is someone who does not perform any duties relating to the day-to-day operations of the corporation.

Any changes to coverage for directors can be made on the annual Employer’s Payroll Statement (EPS). All EPS forms are due Feb. 28 of each year. 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.

Directors’ policy frequently asked questions

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A: No. Any firms operating in a mandatory industry and reporting employment income on a T4 slip for a director will need to register for coverage.

A: No. Inactive directors are not required to have coverage. An inactive director is someone who does not perform any duties relating to the day-to-day operations of the corporation.

A: A director who receives a T4 is considered a worker. You should cancel your WCB personal coverage and report your wages in the “Workers' Wages” section of the Employer’s Payroll Statement (EPS).

A: A director who does not receive a T4 is not required to have mandatory coverage but can elect to have optional personal coverage  through the WCB.

A: 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 or 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.

Examples of day-to-day activities include administrative duties, like bookkeeping or managing the business, or any other tasks required to keep the business running.

A: Yes. A director who is paid on a T4 and is active in the business in any way is required to have mandatory coverage.

A: No. If they are not active in the day-to-day activities of the corporation, they are not required to have coverage.

A: No. If they are not active in the day-to-day activities of the corporation, they are not required to have coverage.

A: No. If you do not work in Saskatchewan, you are not required to have coverage here.

A: No. This policy only impacts corporations.

A: All workers in mandatory industries are covered by workers’ compensation. If you are considered a worker in a mandatory industry, you cannot opt out of coverage. WCB coverage compliments other insurance coverage you may have. As first payer, we pay compensation for work injuries regardless of eligibility for benefits from other sources. The WCB will also cover expenses associated with the treatment of a work injury including medications, care providers, and vocational rehabilitation. Benefits are also provided to eligible dependants when a work injury results in a fatality.

A: The amount of earnings loss benefits you receive will be based on the lower of our maximum wage base or the amount of your earnings. We are unable to compensate for a wage rate that exceeds our maximum.

A: Under our Act, the definition of a worker includes “an executive officer of an employer, if that executive officer is carried on the employer’s payroll.” Through policy, the Board has further defined an executive officer, also referred to as a director, as a person chosen to control or govern the affairs of a limited company or corporation and who is registered as a director of that corporation. Therefore, when a corporation has a director that receives a T4 like their employees and is active in the day-to-day operations, they should also be considered a worker of the corporation.

A: No. This is not to collect more premiums. We set premiums that reflect the cost of claims. This is to ensure that anyone involved in the daily operations of a corporation is protected in case of a workplace injury or death. And if a worker’s death is the result of a work injury, the worker’s family may also be eligible for benefits.

A: Benefits are based on a worker’s earnings at the time of injury or an average of the worker’s earnings for the 52 weeks prior, whichever is greater. Earnings loss benefits are then based on 90 per cent of net earnings (gross earnings minus probable deductions for income tax, Canada pension and employment insurance).

A: The WCB will cover a worker’s injury if it arises out of and in the course of employment and requires medical treatment and/or time away from work. We consider each work injury on an individual basis. And if it’s considered a work injury, the WCB will pay for medical treatment, hospital care, prescription drugs and medical supplies. Saskatchewan Health does not cover these costs for work injury claims.

A: Yes. When you elect voluntary coverage, you are subject to all of the requirements under the Act, which means if there are earnings reported on a T4 for any active directors, they must be reported to us.

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For specific inquiries

If you are:

  • ready to register your business
  • requesting a clearance or a letter of good standing
  • revising or updating your payroll
  • discussing your statement of account and/or making a payment

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For general inquiries, contact us.

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For questions on your worker’s injury claim, contact us.

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