Employers hiring contractors and sub-contractors need to keep track of payments made for work performed. Section 38(1) of the Act requires that every “employer must … keep at all times … complete and accurate particulars of the employer’s payrolls”. This creates an onus on every employer to identify with sufficient specificity in its payrolls each payment to a subcontractor which the employer asserts should not be included in its assessable payroll.
At a minimum, sufficient specificity includes the subcontractor’s name and WorkSafeBC account number, and an explanation as to why payment to that subcontractor should not be included in the employer’s assessable payroll (e.g., either the named subcontractor was already registered as an employer with the Board, or there are invoices or other records proving that payments made to that subcontractor by the employer were not for labour contractors).
Keeping track of this information will ensure the correct assessment amounts are paid to WorkSafeBC and improve audit efficiency, positively affecting your bottom line.
Dianne Mueller CPB
Soma Small Business Solutions