Coverage – Contracts Involving Equipment
Effective date: February 1, 2011
Last updated: January 27, 2011
Application: Principals and contractors of hired equipment
Policy subject: Employer coverage and registration
To establish coverage when an equipment owner enters into a contract requiring equipment.
POL 02/2011, Coverage – Contract Involving Equipment, establishes coverage for contractors in accordance with Section 8 of The Workers’ Compensation Act, 2013 (the “Act”).
- Employer Services staff will determine if the contract involves major equipment as defined in POL 02/2011.
- Where the owner and/or operator of the equipment is considered a worker of the principal, the principal must report the amount of the contract (net of sales taxes) on the employer payroll statement. The principal may deduct or recover from the equipment owner the sum equivalent to the premiums paid based on the firm’s net premium rate for the work being completed.
Company A enters into a contract for $3000 with an equipment owner to complete an excavation project that requires the use of major equipment. Using the Assessment Schedule for Contract Labour (PRO 07/2004), Company A determines that 25% of the total contract value (net of sales tax) is assessable. Therefore, Company A reports $750 as the labour portion of the excavation contract to Employers Services staff.
To determine WCB premiums required for the labour portion of the contract and the allowable portion to deduct from the contractor of the excavation equipment, Company A uses their net premium rate, which is $2.76 per $100 of assessable payroll:
Act Sec #
Act Sec #
01 January 2014. References updated in accordance with The Workers’ Compensation Act, 2013
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