Annual Return Help

Need More Help?

H - Company Contracts

If you hire contractors or subcontractors, you are responsible for their workers’ compensation insurance unless they:

• Have their own valid WCB-Alberta account
• Are performing work as:
  - An employer in that industry,
  - A worker of another employer,
  - A director of a corporation who is eligible and does not have personal coverage, or
  - A proprietor or partner in a partnership with personal coverage.

Please keep a record of all contractor or subcontractor earnings. Your record may be required for audit purposes.

For each contractor, indicate only the part of the contract that was used to pay for labour. Click on the “Look-Up” icon if you think that the subcontractor may have a WCB account and paid their own coverage. Do not include individual worker earnings above the maximum assessable earnings for 2025 ($106,400). If subcontractors supplied helpers, the full labour portion should be reported.

You can enter either the total labour across all contractors (Part A) or enter the labour portion of costs for each contractor (Part B). Do not enter amounts included in line G-1 of worker earnings.

Total labour costs across all contractors

H-1. Contract labour

If you choose to enter total labour costs across all contractors, you must separate the labour portion of each contract from non-labour expenses. Calculate:

contract labour costs = contract gross value less non-labour portion

Do not report contractors who pay their own workers’ compensation premiums. Workers of other companies may be deemed to be workers of the principal (your organization).

To determine if a contractor carries their own WCB-Alberta coverage, click here and follow the steps below.

1. Click on the right-most “START” button (labelled “I am hiring one or more companies and need a clearance on their account(s)”):
   

   

2. Enter an account number or company name and click on the “Search” button:
   

   

3. Close the browser or browser tab to return to the “Contracts” page.

You cannot look up WCB accounts that have been closed more than 90 days.

If all of your subcontractors have their own WCB coverage, enter zero on line H-1.

H-2. Excess gross earnings of individual subcontractors

The amounts included in line H-1 that exceed 2025 maximum earnings of $106,400 per worker. The following example shows how to calculate gross and excess earnings for three hypothetical workers under contract with your organization:

In this example, the amount $5,400 would be entered on line H-2.

Calculate any excess per contract worker, not per contract.

Labour costs by contract

You can enter each contract on a separate line and have the Annual Return calculate the addition to your net assessable earnings.

Do not report contractors who pay their own workers’ compensation premiums. Workers of other companies may be deemed to be workers of the principal (your organization).

To determine if a contractor carries their own WCB-Alberta coverage, click on the “Look up account” button. You cannot look up WCB accounts that have been closed more than 90 days.

If you operate in multiple industries, you will have to assign contractor payroll to the appropriate industry. If a contractor is paid to administer multiple industries, enter the contractor earnings under “administrative earnings”.

To begin adding contractors, click the button.

Company Name

The legal or incorporated name of the company you contracted.

Industry

If your organization operates in multiple industries, choose the industry covered by the contract. If the contract covered more than one industry, divide the contract amounts by each industry and enter on separate lines.

Contract Gross Value

The gross value of the contract, including amounts invoiced for labour and all other expenses.

Labour Portion of Contract

The amount of the contract that was paid for labour only. If labour was not billed separately under the contract, provide a reasonable estimate based on your own operations.

Excess Over $106,400 per Worker

The amounts included in the Labour Portion of Contract that exceed 2025 maximum earnings of $106,400 per worker. The following example shows the calculation of gross and excess earnings for three hypothetical workers under a single contract:

In this example, you would enter the amount $5,400 under "Excess Over $106,400".

To save your changes, click the button. To cancel your changes, click the button.