Canadian Contractor


Can you open two companies to minimize WSIB premiums, reader asks

One would operate with a single contractor doing only residential jobs. The other company would take on commercial work as well, and pay its full share of WSIB.

One of the most criticized organizations in our industry, Ontario’s WSIB still allows an exemption from paying premiums for self-employed contractors who “do not have workers and contract directly with the person occupying the residence and work exclusively in home renovations.”

We have no idea how long this “loophole” will stay open. But since it exists, it has been the focus of some interesting enquiries on these boards over the years. Here is a new one. We don’t know if this will work, if it is legal, etc. Comments?

I am wondering if opening two businesses would help with WSIB coverage in Ontario. You would have one company operate solely within the exemption rules (contract directly with homeowner, no employees) and then you would have another company that deals with commercial jobs. I understand that running two businesses comes with a bit more paperwork, but would this not allow for only paying WSIB premiums on the commercial construction business?



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