If you hired subcontractors who operate in a mandatory industry that did not have WCB coverage, you should include the labour portion of those contractors in your regular payroll reporting to WCB. The assessable wages associated with the subcontractor’s work must be included in the calculation of your total assessable payroll and reported at least quarterly on your Remittance Voucher. In this case, the subcontractor is considered your worker and you cannot hold back premiums. If you determine at a later date that the subcontractor does have workers’ compensation coverage, an adjustment will be made.

If you hire a subcontractor who is not working in a mandatory industry, then no premiums are payable on behalf of the subcontractor. The subcontractor is not covered by workers’ compensation insurance in the event of an injury.

If the subcontractor is registered with us but is not “in good standing” (meaning they have coverage, have met all payroll reporting requirements, have paid all premiums to date and have no outstanding balance on account), then you and the subcontractor are jointly responsible for premiums associated with the subcontractor’s work. In this case, you may withhold the amount of the subcontractor’s premium from the contract. This is the only situation in which you can hold back a portion of the subcontractor’s wages.

The table below will help you determine the labour portion of contractor costs.