London, Ont. family construction firm gets a scare from the WSIB on dividendsCanadian Contractor Coverage Insurance Insurance Coverage
Bonnie Hardy expressed relief that her London, Ont. firm's dividends paid to her family would not, finally, be liable for WSIB premiums - after being warned by an auditor that they would be
Some good news on the Ontario WSIB front? The provincial government workplace insurance agency is not, apparently, coming after construction company dividends paid to directors.
In the past month, it had appeared that a completely unpublicized new policy on such dividends had been brought into play by the WSIB. Canadian Contractor learned that a WSIB auditor had cautioned Bonnie and Craig Hardy, owners of Covenant Construction, London, Ont., that dividends to that company’s directors (the owners and their daughters through a family trust) might be considered work income. It would have been the first time that dividends had been classified that way.
On March 2, the insurance board informed Covenant Construction of London, Ont., that WSIB would not, finally, consider these dividends as insurable work income.
Bonnie Hardy expressed her relief. “I’m not opposed to paying into WSIB on some level, but we just thought this would be going too far,” she said, noting that she hadn’t received a dividend through the family trust since last November. Craig Hardy takes advantage of the one insurance coverage exemption WSIB allows for a partner or executive per company.
– John Caulfield