Changes to Class G - Construction
As of January 1, 2018, certain business activities that were previously classified under Class G –Construction, will be moving to a new class. For these business activities, certain obligations under the Workplace Safety and Insurance Act (WSIA) and WSIB policy will no longer apply.
These changes are taking place in preparation for the new NAICS structure that will be implemented in 2020 as a part of the rate framework.
If your account was affected by these classification changes, you will receive a letter in the mail with information about these changes, the business activities moving out of Class G and where they are moving. Depending on your account, you may receive more than one letter regarding these changes.
What’s changing?
Classification Change
If one or more of your business activities is moving out of Class G (construction), you may have a new classification and rate group effective January 1, 2018.
Classification changes to construction
Please call us if you are in one or more of the impacted business activities below. Business activities that are not listed are not changing. There is no action required if you are not involved in any of the impacted business activities
Business activities that are moving out of Class G, Construction to a non-construction Classification Unit:
| Current Classification | Impacted Business Activities; | Moving to: |
|---|---|---|
| Rate Group: 704 CU Code: 4499-001 CU Description: Testing, Inspection and Related Services |
|
Rate Group: 958 |
| Rate Group: 704 CU Code: 7799-012 CU Description:Office Furniture Installation |
Repair of office and store furniture and equipment such as workstations, desks, non-stationary cabinets, and portable partitions or non-stationary display cases on the customer’s site. |
Rate Group: 933 |
| Rate Group: 707 CU Code: 4241-099 CU Description: Plumbing, Heating, and Air Conditioning, Installation |
|
Rate Group: 923 CU Code: 9953-001 CU Description: Janitorial Operations (Class I) |
| Rate Group: 707 CU Code: 4259-000 CU Description:Industrial Maintenance and Repair Contracting |
Moving entirely out of Class G. | Rate Group: 933 CU Code: 4259-000 CU Description: Other Services as its own (Class I) |
| Rate Group: 723 CU Code: 4234-003 CU Description: Asbestos Abatement |
Moving entirely out of Class G. | Rate Group: 923 CU Code: 4234-003 CU Description: Other services as its own (Class I) |
| Rate Group: 732 CU Code: 4129-001 CU Description: Other Heavy Construction |
Commercial diving, except for the purposes of carrying on Construction business activities, as listed in Class G of the Employer Classification Manual (ECM). | Rate Group: 944 CU Code: 9999-001 CU Description:Miscellaneous Services (Class I) |
|
Rate Group: 737 |
Custom welding services such as:
Custom on-site welding and mobile welding services |
Rate Group: 933 CU Code: 9949-000 CU Description: Other Repair Services (Class I) |
| Rate Group: 748 CU Code: 9952-001 CU Description:Above Ground Window Cleaning |
Moving entirely out of Class G. | Rate Group: 923 CU Code: 9952-002 CU Description: Window Cleaning — ground level and above (Class I) |
| Rate Group: 748 CU Code: 9959-001 CU Description: Other Services to Buildings and Dwellings |
Cleaning the exterior of buildings and dwellings (with incidental painting) and large-scale industrial equipment, machinery, and structures such as blast furnaces. Activities such as:
|
Rate Group: 923 CU Code: 9953-001 CU Description: Janitorial Operations (Class I) |
Business activities moving to another Classification Unit within Class G, Construction:
| Current Classification | Impacted Business Activities; | Moving to: |
|---|---|---|
| Rate Group: 737 CU Code: 9942-000 CU Description: Custom Welding Services |
Welding services provided by contractors at site of construction. | Rate Group: 737 CU Code:4299-000 CU Description: Other Trade Work |
| Rate Group: 748 CU Code: 9959-001 CU Description: Other Services to Buildings and Dwellings |
Cleaning the exteriors of buildings and dwellings and the cleaning of large-scale industrial equipment, machinery, and structures, such as blast furnaces when completing sandblasting (this includes painting as an incidental activity). |
Rate Group: 748 |
Predominant Business Activity
If you have multiple business activities but cannot segregate your payroll, we will need to determine the predominant business activity and whether you still remain in Class G.
Mandatory Coverage
If you are an Independent Operator, Sole Owner, Partners in a partnership or Executive Officers (including those currently covered under Rate Group #755), you may no longer be required to have mandatory coverage and may have the option of closing your account with us, if you have no workers.
What do you need to do?
In order to confirm changes to your account and the impacts to your business, we need you to hear from you before February 1 2018.
If one or more of your business activities has been impacted by these changes, we need you to do the following:
- Review the Classification Changes charts above and confirm your business activity is moving out of Class G.
- Call the WSIB at 1-800-387-0750 to speak to one of our representatives who will update the changes to your account immediately.
- If you are no longer under mandatory coverage and would like your individual coverage to continue, please complete an Optional Insurance form and return it to us by email at: employeraccounts@wsib.on.ca
FAQs
Why are certain business activities moving out of Class G – Construction?
In preparation for the new NAICS classification that will be implemented in 2020 as part of the rate framework, the Ontario government approved changes to the list of industries under Class G and Class I as per changes to the legislation O. Regulation 175/98 General, Schedule 1. The Employer Classification Manuel (ECM) is changing to reflect these changes and certain business activities will no longer be classified under Class G – Construction. This is being done to ensure employers in these business activities are classified correctly and their new premium rates are calculated accurately once the rate framework is implemented in 2020.
When are the changes being implemented?
All changes are effective as of January 1, 2018.
Which business activities are being reclassified?
Please see the classification changes above.
How will this impact my business?
As outlined below, the impact of the changes to Class G (construction) will vary depending on the structure of your business:
- Sole proprietors (SPs), Partners (Ps) and Executive officers (EOs) may not be in mandatory coverage under the WSIA anymore.
- Employers are not required to report the insurable earnings of the SPs, Ps, or EOs not in mandatory coverage anymore.
- SPs, Ps or EOs must request Optional Insurance if they would like to continue to have WSIB coverage.
- Employers may close their accounts if they don’t have workers and one of their owners/EOs doesn’t apply for WSIB optional insurance.
- Reclassification is required for accounts when employers have workers.
- Partners and EOs are not eligible for Rate Group 755 and Exemption if the employer is not involved in a business activity that is classified in Class G.
- The extension of coverage to multiple accounts is no longer applicable.
- Premium rates, experience rating programs, clearance obligations, and re-employment obligations may change for reclassified employers.
Will my premium rates change?
If your account is reclassified to a different rate group as a result of these changes, your premium rate will change to reflect the standard premium rate for your new rate group.
How will this impact my current Experience Rating program?
- If your account is reclassified, then your experience rating program may change. Depending on the classification changes, CAD7 employers could be assessed only under the NEER program in 2019, or CAD-7 as well as NEER.
- If you are under the CAD7 program, there will be no immediate impacts.
I recently received my 2018 MAP Statement – will my rates be impacted?
- Your MAP statement used information as of October 2017 and shows your current CUs and Rate Groups for 2018.
- Your 2018 MAP rate was determined using premium and claim information from 2014-2016. If you are reclassified under a different rate group due to these changes, the MAP rate percentage increase or decrease will apply.
What if my business activity changes before the rate framework is implemented?
These changes may impact your classification and premium rate under the rate framework as your premium rate is based on your business activities, insurable earnings and claims experience.
Why was an Optional Insurance form included in my letter?
- Independent Operators, Sole Proprietors, Partners of Partnerships and Executive Officers of Corporations may no longer have mandatory coverage however; they can still obtain Optional Insurance coverage if they want WSIB coverage.
- The Optional Insurance form has been included with the letter so that these individuals can quickly and easily complete the request form to activate their coverage in a timely manner.
Will my business continue to be covered until changes are made to my accounts?
Yes, workers will continue to have coverage with the WSIB as we process changes on employers’ accounts.