Equipment allowance
When you report payroll and pay premiums for unregistered subcontractors and they provide certain types of equipment to fulfill the contract, you may be eligible to claim an equipment allowance. The equipment allowance is subtracted from the total contract value, offsetting costs incurred to operate and maintain the equipment.
Example
A construction contractor hires a backhoe operator who provides a backhoe as part of a $10,000 contract. The backhoe operator is not registered with WorkSafeBC. When the contractor pays for WorkSafeBC coverage for the backhoe operator, the contractor can report $6,000 as the labour value because there is a 40 percent ($4,000) equipment allowance for backhoes.
| Contract value | Equipment allowance | Total assessable earnings |
|---|---|---|
| $10,000 | 40% | $6,000 |
Equipment allowance by equipment type
| Equipment type | Examples | Allowance |
|---|---|---|
| Chain saw |
|
15% |
| Medium equipment |
|
40% |
| Heavy equipment |
|
75% |
* There are no equipment allowances for crew transportation equipment such as pickups and crummies
Need more information?
If you have any questions, please contact our Employer Service Centre.