You must include shareholder earnings in your calculation of wages and salaries when reporting payroll. Dividends, bonuses, and draws are considered part of the shareholders’ earnings when paid as remuneration for activity in the company.

The Workers Compensation Act recognizes that a worker may work at a nominal wage or for no wage and enables WorkSafeBC to determine or fix the amount of a worker's average earnings for assessment purposes. For more information, refer to Practice Directive 5-245-2(A).

Need more information?

If you have any questions, please contact our Employer Service Centre.