Principals of limited companies may receive all or a portion of their remuneration as dividends instead of wages. Currently, dividends paid to active principals are included in an employer’s assessable payroll as well as in the calculation of a principal’s average earnings. However, effective January 1, 2015, dividends paid to active principals will no longer be assessed.
This policy review is to determine whether compensation policy should be revised to also exclude dividends paid to active principals from the calculation of their average earnings.
WorkSafeBC’s governing body, the Board of Directors, has approved the release of a discussion paper with policy options for stakeholder review and comment.
Stakeholders are invited to review the discussion paper and proposed options and to provide feedback by September 5, 2014.
The discussion paper, policy options, and information on providing feedback can be accessed by clicking HERE.