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Clearance letters FAQs
What type of clearance letter can I request online?
You can request a letter that tells you whether a firm, contractor or subcontractor is complying with our registration and payment requirements. If it isn't and you hire the firm, you could be held liable for the firm's premiums. This type of clearance is provided under Section 51 of the Workers Compensation Act to protect you against contractor liability.
If you hire a firm that has GoldStar Clearance status, that firm may have advance clearance to a future date. In this case, WorkSafeBC will honor the clearance addressed to you to the date indicated on the clearance letter.
What is a GoldStar Clearance?
This type of clearance became available to qualifying firms in May, 2007. Unlike other clearances, which ‘clear’ firms for past payroll periods, GoldStar Clearances are automatically advanced to qualifying firms to the start of the next quarter. For a firm that has reported its payroll and paid its first quarter premiums, for instance, a GoldStar Clearance would provide clearance to July 1, rather than April 1 as it would under the current system.
Are there benefits associated with GoldStar Clearances?
Yes. The benefits vary, depending on whether you are a prime contractor or a subcontractor.
Benefit to prime contractors
Prime contractors frequently check the clearance status of their subcontractors to make sure subcontractors are reporting their payroll and making their payments to WorkSafeBC as required. This practice helps prime contractors to avoid potential financial liability under Section 51 of the Workers Compensation Act should their subcontractors default on their payments to WorkSafeBC.When a prime contractor hires a firm that has GoldStar Clearance status, WorkSafeBC will honor the clearance addressed to that prime contractor to the date indicated on the clearance letter. This eliminates the onerous task of checking and re-checking clearances and reduces potential liability for the prime contractor during the period covered by the GoldStar Clearance.
Benefit to subcontractors
Subcontractors are often required to present a clearance letter as part of a bid for work with a prime contractor.When a subcontractor presents a GoldStar Clearance, it shows the prime contractor that it has clearance to a future date, which eliminates the need to provide additional clearances until the GoldStar Clearance expires. This reduces administration for the subcontractor.
Benefit to employers overall
Because GoldStar Clearances benefit prime contractors and subcontractors, they are expected to encourage firms to comply with reporting and remitting requirements. That means employers will be contributing on an equitable basis to the workers' compensation system — a benefit to everyone.
What makes a firm eligible for a GoldStar Clearance?
To be eligible for GoldStar Clearance status, a firm's account must be in good standing with WorkSafeBC. The account must also have been active for at least 24 months within the last 36-month period.
What type of clearance letters are not available online?
Clearance letters that protect you against lien claims if you're purchasing the assets of a business are not available online. However, this type of clearance, which is provided under Section 52 of the Workers Compensation Act, is available by phone or fax.
Other letters that you can request only by phone or fax include:
- Clearances that confirm a firm is not registered
- Clearances that apply for a limited period of time
- Clearances requiring project/file numbers or comments about the firm
To request a clearance that is not available online, call our Clearance Section at 604 244-6380 or toll free at 1 888 922-2768 or fax us at 604 244-6390.
What does a clearance letter tell me?
The letter tells you whether the firm is registered and up to date with its payments. Clearance letters may contain the following descriptions:
- Active and in good standing
The firm is registered and up to date with its payments. Keep in mind that the clearance is valid only until the date of the firm's last payment unless the firm has GoldStar Clearance status, in which case it may have advance clearance to a future date. - Cancelled and in good standing
The firm has cancelled its account and does not owe premiums. If the firm is required to be registered, you could be liable for retroactive premiums. Visit registration for more information about who's required to register or contact our Employer Service Centre. - Active and delinquent
The firm owes premiums. You could be held responsible for premiums related to your contract if you hire the firm.
Cancelled and delinquent - The firm owes premiums. You could be held responsible for premiums related to your contract if you hire the firm. If you're not sure whether you or the subcontractor needs to be registered, visit registration or contact our Employer Service Centre.
- Recently registered
We're unable to comment because the firm's first payment is not yet due. You should ask the firm when its payment is due and return to this site on that date to check the clearance status. - Recently registered and subsequently cancelled
We're unable to comment because the firm's final payment is not yet due. You should check again at the beginning of next month to see if the firm's clearance status has changed. - Not reported its annual assessment
We're unable to comment because the firm hasn't provided year-end payroll figures. Until the firm reports its payroll, we can't determine whether it paid the correct assessment. - Unable to comment
The transactions on this account haven't yet been fully processed. Please try again tomorrow or contact our Clearance Section at 604 244-6380 or toll free at 1 888 922-2768.
How long is the clearance valid for?
The clearance is valid only until the date of the firm's last payment unless the firm has GoldStar Clearance status, which gives qualifying firms advance clearance to a future date. Refer to the second paragraph of the letter that reads: "This firm has had continuous coverage with us since (date) and has satisfied assessment remittance requirements to (date)."
I've hired a subcontractor to work for me until October 15, and his clearance is valid only until March 1. What should I do?
Be sure to check the subcontractor's clearance rating before you make the final payment. By then, if the clearance is still valid only until March 1, it's up to you to decide if you want to make the final payment to the subcontractor or wait until the subcontractor has paid his first quarter premium to WorkSafeBC (the WCB), which is due April 20. You can also discuss the matter with WorkSafeBC's Clearance Section by calling 604 244-6380 or 1 888 922-2768. To be notified of any change to a subcontractor's clearance rating, sign up for our Clearance Alert service.
Why does my letter show a clearance until the beginning of the next quarter?
This indicates that the subject firm on the clearance letter has GoldStar Clearance status. This means that it has a solid track record with WorkSafeBC (its account is in good standing and has been active for at least 24 months within the last 36-month period). It could also mean that the employer has prepaid its premiums or paid its premiums in installments, which gives it clearance until the start of the next quarter, providing its account remains in good standing.
Why does my letter show a clearance until the end of the year?
Firms that prepay their premium receive clearance until the end of the year.
Why does the application ask for my contact details and mailing address?
We ask for these details so we can address the clearance letter to your firm. This proves that your firm has specifically requested the clearance and therefore helps to protect you from liability under the Workers Compensation Act.
How do I find the firm I'm looking for?
Simply search by name or account number for all the contractors, subcontractors, and firms you are interested in. The application displays a list of all the "subjects" that meet your search criteria. From that list you can select the ones for which you want clearance information. The application creates a letter listing the clearance status for all of the subjects you selected.
Can I get clearance information on more than one contractor at a time?
Yes. The online clearance application provides up to 150 clearances per letter.
What should I do if I can't find the contractor's name in the search function?
There could be several businesses registered under the same name (e.g. entering "Subway" in the search function returns more than 50 entries). For the most accurate results, search by account number. Alternatively, confirm the legal name or trade name with the contractor.
If you still can't find the business you're looking for, it may not be registered with WorkSafeBC. To protect your interests, you should verify whether the contractor is required to register. In some cases, the business may be covered under a homeowner's or contractor's registration. This means a homeowner may be required to register with WorkSafeBC.
To learn more about who's required to register, visit registration or call our Employer Service Centre.
How do I print the clearance letter?
Maximize the letter window on your screen and select the print command. Be sure to print the clearance letter and keep it with your records. If you encounter problems, ask for assistance from your company's technical support resources.
Is there a cost for a clearance letter?
No. Our clearance letters are free of charge.
Where can I get technical support?
Call the Customer Support Centre at 604 276-3135 or toll-free 1 888 855-2477 between 8:00 a.m. to 4:30 p.m. (PST), Monday through Friday, or e-mail ehelp@worksafebc.com.