Sole proprietors with employees in construction

The WSIB considers you to be a sole proprietor with employees if:

  • you own your business alone (a non-incorporated business with no partners)
  • you operate without others, except for the people you hire as employees
  • your business performs Class G construction work (see details in the employer classification manual).

This means that under the legislation, you will be insured by the WSIB and will have to report your earnings and pay premiums to us in addition to your employees.

Exemption from mandatory coverage

You are exempt from mandatory coverage if the construction work your company does is strictly home renovations and you are always hired and paid by the home’s owner or resident, however, you must still have coverage for your employees.

Calculating insurable earnings

Businesses in construction must calculate the amount of premiums owed, and report and pay the amount to the WSIB. The calculation of premiums is based on the gross wages paid to the employees you are responsible for insuring.

Premium = Insurable earnings x premium rate ÷ 100

Here’s how:

  • Use the earnings you reported to the Canada Revenue Agency (CRA) last year to estimate your earnings for this year. You will find this number on line 135 of the T1 General form you submitted to the CRA.
  • Divide the amount of line 135 of the T1 General by the number of times your report in a year (e.g. quarterly or monthly). Your reporting frequency is found in the letter you received when you first registered with us. 
  • Add this figure to your employees’ gross wages for the reporting period. This figure represents your insurable earnings.
  • Multiply your insurable earnings by the premium rate assigned to the type of work you do.
  • Divide this number by 100. This will give you your total premium payable for the reporting period.
  • If you have just started your business, you can use (as a minimum) one third (33.3 per cent) of the annual insurable earnings maximum as an estimate for your insurable earnings. You may use this figure and add to it your employees’ gross wages.
  • If your actual earnings turn out to be different than the amount you reported, please let us know.


Reporting and paying premiums is a two-step process. Report your premiums and pay online.

For more information see: