WSIB Independent Operator or Worker: What Is My Subcontractor?
Short answer: For the WSIB, a subcontractor is a worker if your business controls what, where, when and how the work is done, and an independent operator if they run their own separate business. The WSIB decides, not the contract. If it rules the person is a worker, you report their earnings and pay premiums, sometimes retroactively.
A WSIB independent operator is a person who works under a contract for service, runs their own business and has no employees. This post covers Ontario industries outside construction, where the WSIB confirms status with a questionnaire. Construction has its own rules, covered near the end. As of 2026 the WSIB applies its policy 12-02-01, in effect for decisions made on or after December 5, 2024.
What is a WSIB independent operator, and how is a worker different?
A worker is employed under a contract of service. An independent operator works under a contract for service, which is a business relationship.
Worker. Your business has the right to control what work is done, and where, when and how. Workers are insured automatically, and the employer pays the premiums. This includes full-time, part-time, seasonal and temporary employees, and family members.
Independent operator. The person agrees to do specific work for payment, and your business does not necessarily control how, when or where it is done. They are not insured automatically. They can apply for their own WSIB account and optional insurance. They cannot be insured through your account.
How does the WSIB decide if someone is an independent operator?
The WSIB uses what it calls the organizational test. It looks at control, who owns the tools and equipment, the chance of profit or risk of loss, and whether the person is part of your organization or runs a separate business.
The WSIB policy compares the two in a table. The main rows:
Element | Worker | Independent operator |
Instructions | Follows instructions on what, when, where and how | Works on their own schedule, in their own way |
Training and supervision | Trained and supervised by one of your experienced employees | Uses their own methods |
Personal service | Must do the work personally, needs your consent to hire others | Often hires others without your consent |
Payment | Regular amounts at set intervals, decided by the payer | Paid by the job, negotiates the amount |
Licences | The payer holds the licences | The person holds the licences |
Serving the public | Works only as your representative, invoices customers on your behalf | Has their own office, advertises, invoices on their own behalf |
Taxes and deductions | The payer deducts CPP, EI and income tax | No deductions, collects and pays GST and other taxes on their own behalf |
Other payers | Usually works for one payer | Works for more than one payer at the same time |
No single row decides the status. The WSIB also looks at profit or loss: who pays for the tools, materials, repairs and insurance, and who makes the decisions that change those costs. A ruling from the Canada Revenue Agency is one of the things on the list, but it does not settle the WSIB question by itself.
The deciding rule: if the person is under a high degree of control and their own decisions have little effect on their profit or loss, the WSIB treats them as a worker, even when other points suggest some independence.
When do I need a WSIB status questionnaire, and what do I send?
Complete the status questionnaire before the work starts. The WSIB asks for it when a business engages a contractor and needs to know if it must report and pay for that person's coverage, or when a person with no employees is asked for proof of WSIB coverage.
Pick the questionnaire. There is one for transportation (trucking, courier, third-party food delivery and rideshare), one for logging and a general one for all other industries. Taxi and retail use the general one.
Complete it. The individual or the hiring company can complete it. They may send separate questionnaires if they disagree on some answers, or if the individual wants to send financial information in confidence. One questionnaire can list more than one business.
Attach the supporting documents. Depending on the industry: three to five recent invoices or contracts for different companies, the business registration or articles of incorporation, the HST number if there is one, recent purchase orders for materials, advertising material such as a business card or website, and the vehicle ownership in transportation.
Send it to the WSIB. Submit it online or email it to employeraccounts@wsib.on.ca. The WSIB reviews it and sends a decision letter to both the individual and the company.
What does a status ruling mean for the business that hires the subcontractor?
It tells you who pays for the coverage. The ruling goes one of two ways:
Worker. Your business is responsible for the coverage. You report the earnings and pay the premiums. The ruling is effective from the start date of the working relationship, so you may have to make retroactive premium payments.
Independent operator. Your business is not responsible for premiums on that person's earnings. The person is not covered for a workplace injury unless they buy optional insurance.
Skipping the questionnaire has a cost. The WSIB's page on independent operators says that without a confirmed status, a business may be responsible, in an audit, for premiums on the labour portion of the contract paid to the person. This is also why some businesses hold back payment until the decision letter arrives.
A status decision is valid for the term of the contract, or for as long as the working relationship does not change. If your business is not registered yet, see who has to register for WSIB in Ontario.
Does incorporating make my subcontractor an independent operator?
No. The WSIB says that incorporating, on its own, does not make a person an independent operator. A one-person corporation still completes the industry questionnaire. The WSIB looks at whether the person really operates a business, not only at the legal structure.
Is construction different?
Yes. In construction, an independent operator generally must have their own WSIB coverage and pay their own premiums. The WSIB treats a sole proprietor or sole executive officer as an independent operator in construction when they:
perform or manage Class G construction work
have no employees
work as a contractor or subcontractor for more than one person in an 18-month period
report as self-employed to a government agency, such as the Canada Revenue Agency
The exception is a business that only does home repairs or renovations and is hired and paid directly by the homeowner or resident. So in construction, the hiring business asks the subcontractor for a clearance, not a status ruling. See how to get a WSIB clearance certificate.
How can a bookkeeper help with subcontractors and WSIB?
A bookkeeper keeps the paperwork that answers the WSIB's questions. As general good bookkeeping practice:
keep a list of every subcontractor, with the status decision letter or clearance on file
ask for the status decision before the first payment, not after
keep the contracts and invoices, with the labour portion shown separately from materials
flag a change in the relationship, such as a contractor who now works only for you
We prepare and file WSIB premium reports for clients, and workers' compensation returns in the other provinces. We also register clients with the WSIB, request clearances for them, and help them complete and send the status questionnaire. You can see what is included on our services page. Our prices are published, you build your own plan and pay only for what you need, and it is the same across Canada. See pricing.
Frequently asked questions
Is a WSIB clearance certificate the same as a status ruling?
No. A clearance shows that a registered business is registered and up to date with the WSIB. A ruling is given to an independent operator who has no obligation to register. It confirms that the hiring business does not need to cover that person.
How long is a status decision valid?
For the term of the contract, or as long as the working relationship does not change. A new contract with the same business may need a new review. If the WSIB rules the person is your employee, the decision stands until the employment relationship changes.
Can an independent operator get WSIB coverage?
Yes. A person ruled to be an independent operator can apply for optional insurance in their own WSIB account. Coverage lasts for a minimum of three months. With optional insurance and an up-to-date account, they can also get a clearance.
Do truck and courier drivers need a new ruling for every contract?
No. In transportation, one status determination letter can be used for later contracts with new principals, as long as the same vehicle is used. The principal matches the vehicle ownership to the vehicle identification number (VIN) on the letter. A new vehicle means a new questionnaire.
Sources
About Remote Bookkeeping
Remote Bookkeeping is a Canadian-owned firm that provides monthly bookkeeping, financial reporting, payroll, HST/GST filing, year-end preparation and QuickBooks Online setup for small businesses across Canada. It was founded by Lia and George, who bring more than 30 years of combined experience. Call (289) 867-0808 or 1-800-880-9141, or contact us. Related reading: How Do I Report and Pay WSIB Premiums in Ontario, and When?
This article is general information for Canadian small business owners. It is not tax, legal or accounting advice for your particular situation. Rates and thresholds change - always confirm against the source linked above or ask us.
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