Click on the following link for more information and to review the complete WSIB OPM.

Transcription

1 The following is an excerpt from the Workplace Safety Insurance Board (WSIB) Operational Policy Manual (OPM): Employer Obligations Guideline for determining the labour portion of the contract. Click on the following link for more information and to review the complete WSIB OPM. *WSIB Policy Manual Excerpt * Defining the labour portion of the contract Adequate records When business records, contractor s invoices, or written contracts are adequate to accurately identify the actual labour portion of the contract, the labour portion is treated as gross insurable earnings in the same manner as the earnings of a non-contracted worker. NOTE 1. Adequate records are defined as records where the amounts allocated and paid for labour and building materials and/or installation supplies are verified as accurate upon audit by the WSIB 2. Deductions do not qualify for a. personal truck/vehicle expenses, or where the truck/vehicle is not specified by the principal, to be used in the direct performance of the construction or logging job by the contractor b. small installation tools (e.g. hammers, ladders, nailers, power tools, paint brushes or rollers, saws, chainsaws).

2 Inadequate records When business records, contractor s invoices, or written contracts are not adequate to accurately verify upon audit the labour portion of the contract, and there is no evidence that the contractor supplies major building materials, construction equipment, or logging equipment (see lists below); or there is evidence that the contractor supplies major building materials, construction equipment, or logging equipment, but the contractor s trade is not listed in the Labour Portion of Contract Table (see end of document) then the WSIB considers that the contract value relates 100% to labour and the total contract value becomes the gross insurable earnings. Major building materials means major structural, mechanical and electrical components, such as Asphalt Bricks, blocks Cabinets Concrete and cement Doors Electrical wiring, boxes and supplies Fill and sand Flooring (wood, tile, carpet) Glass Gravel Insulation and vapour barriers Lumber and steel Pipes Plumbing, heating, and cooling fixtures and equipment Rebar

3 Road culverts Septic tanks Sewer pipes and elements Sheet metal ducts Shingles, tarpaper, valleys, and all other roof covering material Siding, soffit, facia Wallboard Windows Exceptions Major building materials do not include items such as Installation supplies (e.g. adhesive, caulking, fasteners, nails, screws) Small wood and metal items (e.g. molding, trim) Construction equipment means any large item of capital equipment designed to be used in the construction industry, such as Backhoe Bobcat Bulldozer Cement mixer (truck or pumper) Compressors, excluding portable Crane Dump truck Front-end loader Gas powered tamper Grader, or other excavating equipment Jackhammer, excluding portable Scaffolding (multi-storey) Scissor lift generator Welding unit (truck mounted)

4 Logging equipment includes items such as Chipper (mobile) Delimber Feller buncher Grapple loader Skidder Slasher Labour portion of contract table For the purpose of this policy, the Labour Portion of Contract Table applies in two situations. Contractor considered worker If all the following conditions are met The contractor s trade is listed in the Table There is evidence that major building materials, construction equipment, or logging equipment was supplied There are inadequate business records, contractor s invoices, or written contracts to determine the actual labour portion of the contract and the WSIB has determined the contractor to be a worker then the labour portion of the contract between the contractor and the principal is determined by Column A of the Table. Unregistered contractor under s.141(2) The Table is also used in cases where the WSIB finds that an unregistered contractor has employed workers. In these cases, if there is evidence that the contractor supplied major

5 building materials, construction equipment, or logging equipment, then the WSIB uses Column B to determine the labour portion of the contract between the contractor and the principal. If there is no evidence that the contractor supplied major building materials, construction equipment, or logging equipment, then the WSIB uses Column C. NOTE: Columns B and C can only be used by the WSIB. Labour Portion of Contract Table Trade Column A Labour And Material* No Help Column B Labour And Help** And Material* Column C Labour And Help** No Material* CONSTRUCTION Excavating Paving and Trucking Landscaping Acoustic Air Conditioning Cabinet Work Carpet Laying*** Ceramic Tile Concrete Electrical 33 1/3% 25% 60% 50% 33 1/3% 60%

6 Elevators Escalators Flooring- wood Glazing Heating Insulation Masonry Mastic Floor Plumbing Roofing Sheet Metal Siding Steel & Iron Work Stone Weatherproofing Carpentry Cement Finishing Drywall Floor Sanding Form Work Lathing Painting Plastering Terrazzo LOGGING Skidding**** 66 2/3% 50% 60% 33 1/3% 25% N/A Cut & Skid 33 1/3% 25% N/A Cut, Skid & Haul 33 1/3% 25% N/A Cut & Skid with horse 33 1/3% 25% N/A Cut and Haul 33 1/3% 25% N/A

7 Haul, by truck/tractor 33 1/3% 25% N/A Notes for the Table 1. * Material means major building materials, construction equipment, or logging equipment as described earlier in this policy. 2. ** The two And Help Columns (B and C) are used by the WSIB. 3. *** If there is evidence that carpet installers have provided installation supplies only and no major construction materials, then the labour portion of the contract is 80%. 4. **** These percentages apply to all skidding operations with contractors regardless of whether the principal is a sole proprietor, a partner or an employer with workers.