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Does a sole proprietor need to register with WSIB?
Expert: Soma Ray-Ellis
I heard that in order to be able to take on contracts with larger companies they require a sole proprietor to be registered with WSIB. Is this true if the sole proprietor is not sub-contracting or hiring any employees?
Soma Ray-Ellis answered:
Optional insurance is an option for individuals who have been ruled to be independent operators by the WSIB. An "independent operator" is a person who carries on an industry set out in Schedule 1 or Schedule 2 of the Act and who does not employ any workers for that purpose.
Independent operators are those who work under contracts for service and are not automatically insured or entitled to benefits unless they voluntarily elect to be considered 'workers' and apply to the WSIB for their own account and optional insurance. Independent operators may not be insured through the hiring company's (payer's) WSIB account. Pursuant to Section 12(1) of the Workplace Safety and Insurance Act, 1997, any of the following persons may apply to the Board for a declaration that he or she is deemed to be a worker to whom the insurance plan applies:
- An independent operator who carries on business in an industry included in Schedule 1 or Schedule 2, other than construction.
- A sole proprietor who carries on business in an industry included in Schedule 1 or Schedule 2, other than construction.
- A partner in a partnership that carries on business in an industry included in Schedule 1 or Schedule 2, other than construction.
Persons who apply for such a declaration are opting into the optional insurance.
About the author
Soma Ray-Ellis is Partner and co-chair of the Employment and Labour Group at Himelfarb Proszanski LLP. Soma has published numerous texts including Federal Equity Manual and most recently, authored the Discrimination and Human Rights volume for Halsbury’s Laws of Canada. She has participated in many high profile litigation matters, most recently as lead counsel to Air India at the Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182.
Soma Ray-Ellis can be reached at (416) 599-9708 or firstname.lastname@example.org.