At issue was a review of current policy on the compensation of principals of limited companies in relation to shareholder dividends in the Rehabilitation Services & Claims Manual, Volume II. According to policy, dividends paid to active principals were included in an employer’s assessable payroll and in the calculation of a principal’s average earnings. However, effective January 1, 2015, dividends paid to active principals were no longer assessed.

This policy review was to determine whether compensation policy should be revised to also exclude dividends paid to active principals from the calculation of their average earnings.

Consultation closed September 5, 2014.