Effective January 1, 2025, significant changes to The Workers' Compensation Act, 2013 will impact how employers report wages for directors of corporations as follows:
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Directors receiving T4 slip wages are no longer considered workers under the Act.
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Directors no longer have automatic WCB coverage.
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Director earnings should not be included in worker wages on the 2025 Employer's Payroll Statement (EPS).
To ensure compliance with the new legislation, employers should:
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Update their payroll reporting to exclude director wages from the 2025 EPS estimates.
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Review the coverage options. Directors may purchase optional personal coverage for workplace injury protection.
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Notify corporate directors about the change in their coverage status.
These changes only affect corporations. No changes apply to sole proprietorships or partnerships.