Tuesday, March 6, 2012

WSIB and Owners of Corporations

I recently had a corporate client that went through a WSIB audit. The corporation was incorporated a few years ago, by a husband and wife. When they incorporated, they made the wife the sole officer and director of the corporation. The company paid WSIB premiums on all of its employees, but did not pay premiums on the husband and wife. The WSIB auditor assessed the company for all past payments for the husband, on the basis that he was not listed in the minute book or on the public record, as an officer of the company. This seems to be the test. Even though the husband was certainly a directing mind of the company and making all decisions on an equal basis with his wife, and was also a fifty percent shareholder, he was still deemed to be an "employee" and the company was required to pay WSIB premiums on his behalf. Something to consider, if your business is subject to WSIB. The client is in the process of appealing the decision, so I will keep you posted!

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