In Part 1 we covered the owner-operator: no employees, no automatic WCB coverage, and why most solo tradespeople apply for personal coverage anyway. This is the other half of the story. The day someone else starts working for you — your first apprentice, a labourer for the summer, a helper on the crew — the rules flip. Coverage for that person isn't something you apply for. It's something you owe.
The Moment You Hire, Coverage Becomes Mandatory
Under the Workers' Compensation Act, an "employer" is anyone who has, or is deemed to have, one or more workers in their service (s.1(1)(j)). A "worker" is a person who works under a contract of service or apprenticeship — written or oral, express or implied (s.1(1)(z)). Note the word oral. A handshake hire counts the same as a signed contract.
There is no application and no approval step for your employees, unlike personal coverage for yourself. If your industry is covered by the Act, your workers are covered by it from the day they start.
Which industries are covered? The Workers' Compensation Regulation (AR 325/2002) lists exempt industries in Schedule A (s.2) — mostly office, professional, financial, and recreation businesses. The construction and trades work most Alberta tradespeople hire for isn't on that list. The only construction entry is an owner building a residence or non-commercial building for their own use. If you aren't sure whether your particular line of work is covered, confirm with WCB before the first shift, not after.
It isn't only paid employees. Apprentices, learners, and family members who work in the business without pay are covered workers too, and you're expected to report a reasonable wage for them — never less than the provincial minimum wage (WCB Policy 06-01, Part II, Application 1; Policy 06-03, Part II, Application 4; Act s.103(2)). A family member helping out around the shop is the common example. A director of your corporation is the exception (s.103(2)).
You Have 15 Days to Register
Once you employ a worker, you have 15 days to tell WCB (Act s.105; Policy 06-03, Part II, Application 1). Section 105 words this as notice by registered mail; WCB's policy describes it as contacting WCB to open an account. Either way the clock is the same, and you want proof of the date you did it.
WCB will ask for:
- The date your worker was hired
- Your legal name or corporate name, trade name, key contacts, mailing address, and phone number
- A description of what your business does
- An estimate of the gross assessable earnings you expect to pay all workers to the end of the calendar year
Miss the deadline and two things happen: premiums are charged retroactively to the date you hired, and WCB may add a late registration penalty of 10% of your assessment (Policy 06-03, Part II, Application 5). The penalty sits on top of the premium you would have owed anyway, so waiting buys you nothing.
WCB isn't the only registration hiring triggers. The CRA expects its own account for withholding from an employee's pay — the RP account explained in Business Number and CRA Accounts. Put the two on the same to-do list.
If you later stop employing workers, you must notify WCB within 10 days and provide a statement of the wages earned for the part of the year you were an employer (Act s.106). If you start again, the 15-day rule applies again.
How the Premium Works
WCB premiums are priced per $100 of assessable earnings (WCB-Alberta Premium Rate Guide):
"Assessable earnings" is broader than base wages. It includes wages, salaries, commissions, bonuses, holiday pay, recorded tips, taxable benefits, pay in lieu of notice, and the labour portion of contract earnings — up to an annual cap per worker. For 2026 that cap is $110,900 (Policy 06-03, Part II, Application 4; Policy Manual Appendix F).
Here is how that plays out. The rate below is a made-up number for illustration only. Your real rate depends on your industry and is set by WCB each year.
| Scenario | Assessable earnings | Premium at an illustrative $3.00 per $100 |
|---|---|---|
| One employee paid $60,000 | $60,000 | $1,800 |
| One employee paid $130,000 (capped at the 2026 maximum) | $110,900 | $3,327 |
| Two employees, paid $60,000 and $130,000 | $170,900 | $5,127 |
| Owner's personal coverage at the 2026 minimum (optional, see below) | $34,200 | $1,026 |
Where does your rate come from? Alberta classifies employers into 345 industries, grouped into 93 rate groups within 9 sectors. The claims experience of your rate group is the main driver of your rate, so it can move because of how your whole trade is performing, even when your own record is clean. WCB also runs incentive programs, such as Partnerships in Injury Reduction, that can earn discounts or trigger surcharges based on your own record (Premium Rate Guide; Act s.113).
You pay the whole cost. The Act forbids deducting any part of what you owe WCB from your employees' wages (s.139(1)), and WCB policy says the same. Treat the premium as a business expense, not a deduction from anyone's pay. In return, as a general rule an injured worker's claim goes through WCB instead of the courts (s.21(2)).
Estimates, the Annual Return, and the Cost of Guessing Wrong
The earnings figure you give WCB at registration is an estimate, and WCB expects you to keep it honest.
- Revise as you grow. You must revise your estimate when it no longer reflects what you expect to pay. You can revise any time up to the last business day of December (Policy 06-03, Part II, Application 5). Hire a second apprentice in June and the January estimate is already wrong.
- File the annual return by the last day of February. It reports what you actually paid all workers last year and your estimate for the current year (Application 5).
- Late filing can bring a penalty of 10% of the premium.
- Under-estimating triggers a penalty when your actual assessable earnings come in above 150% of your last estimate. The penalty is 10% of the difference between your actual assessment and 150% of the estimated assessment. Estimate $60,000, pay $100,000, and you are over the line (150% of $60,000 is $90,000). Penalties have a $15 minimum (Policy 06-03, Part II, Application 5; Act s.112(2); Regulation s.14).
- Unpaid premiums accrue a monthly interest penalty (Act s.121(2); Regulation s.13).
You also have to keep an accurate record of all wages paid, in Alberta, in the form and detail WCB requires (Act s.108), and give WCB a statement of wages when it asks (s.103(1)).
What About You, the Owner?
Hiring someone does not bring you under coverage. Owners, proprietors, partners, and corporate directors are still not workers unless they apply and WCB approves (Act s.15(1); s.16(1)). You can have a fully covered crew and be personally uncovered on the same job site.
If you want personal coverage, the rules in WCB Policy 06-02, Part II, Application 2 apply:
- You choose an amount between the yearly minimum ($34,200 for 2026) and the maximum ($110,900). Your premium is assessed on the amount you buy (Regulation s.5(3)).
- WCB usually doesn't ask for proof of earnings when you apply. If you buy more than WCB's "Guaranteed Coverage" amount for your industry, you must be able to prove earnings at that level when you file a claim.
- If you're incorporated, dividends count as earnings only when they're paid in place of salary for work you do in the company, not when they're a general share of profits.
- You can change the amount or cancel at any time, effective the date WCB receives your request.
- WCB will not approve personal coverage while you owe premiums on an account you're responsible for, and it can end coverage if premiums go unpaid.
Don't include your own pay in the earnings you report for employees. WCB will remove earnings paid to people who are not workers, such as a corporate director, and adjust your premium (Policy 06-03, Part II, Application 5).
Reporting an Injury: The Clock Starts Immediately
Once you have employees, injury reporting becomes your job. Under s.33(1) of the Act, when you learn of a workplace accident you must:
- Record the details of the accident right away and give your worker a copy.
- If the accident disables, or is likely to disable, the worker for more than the day of the accident, notify WCB within 72 hours of learning of it, and give the worker a copy of that notice.
- Notify WCB within 24 hours of learning that the worker has returned, or is able to return, to work.
Know who is making that call before your first employee's first shift.
Growing Through Subcontractors Instead
Plenty of trades owners grow by subbing work out rather than hiring. The liability rule from Part 1 still applies, and it gets bigger as the jobs do. Where work is done under a subcontract, the principal, the contractor, and the subcontractor are each liable for the premium on that work, and WCB can collect from any of them (Act s.126(2)).
You have practical protection:
- Certificate of clearance. This is written confirmation from WCB that a contractor's or subcontractor's account is in good standing to the date it's issued. You can withhold payment until you receive one, and WCB policy lets a principal hold back an amount based on the labour portion of the contract (Policy 06-03, Part II, Application 3; Act s.126(3)–(4)). Because a clearance is only good to the date it's issued, one pulled at the start of a long job says nothing about the end of it. It's also only valid for work performed in Alberta.
- Labour portion. If a subcontractor is treated as your worker, your premium is based on the labour portion of the contract: 100% of the price when only labour is supplied, 50% when a portable welder and operator are supplied, and 25% when an operator is supplied with equipment such as a truck or backhoe. Other percentages are possible if WCB approves or you can substantiate them. Invoices that separate labour, equipment and materials make this easy (Policy 06-03, Part II, Application 4).
Calling someone a "subcontractor" on an invoice doesn't make them one. A person who does work for you in a covered industry is deemed your worker unless an exception applies (Act s.16(1)), and WCB can deem others to be workers too (s.16(2)). To decide whether someone is running a business or working for you, WCB looks at (Policy 06-01, Part II, Application 2):
- Direction, control and independence
- Who owns or provides the materials, tools and equipment
- Their ability to hire workers or subcontractors
- Financial risk, including the chance of profit and loss
- Responsibility for investment
Quick Reference: What Changes When You Hire
| Item | What it looks like once you have employees | Source |
|---|---|---|
| Coverage for your workers | Mandatory from their first day. No application. | Act s.1(1)(j), (z) |
| Your own coverage | Still optional. Hiring doesn't add you. | Act s.15(1), s.16(1) |
| Registration | Within 15 days of first employing a worker | Act s.105; Policy 06-03 |
| Premium | Your industry rate per $100 of assessable earnings, capped at $110,900 per worker in 2026 | Premium Rate Guide; Policy 06-03 |
| Estimate and annual return | Revise the estimate as you grow. Annual return due the last day of February. | Policy 06-03 |
| Penalties | 10% for late registration, late filing, or under-estimating beyond 150% ($15 minimum) | Policy 06-03 |
| Injury reporting | Record at once. Notify WCB within 72 hours if the injury is likely to disable the worker beyond the day of the accident. | Act s.33(1) |
| Stopping | Notify WCB within 10 days with a statement of wages | Act s.106 |
| Subcontractors | Principal, contractor and sub are each liable. Get a clearance before you pay. | Act s.126; Policy 06-03 |
Where This Meets Your Books
Everything WCB asks of you as an employer starts as a number in your books: what you paid each person this year, what you expect to pay next, and what went to subcontractors and for what — labour, equipment, or materials. Wages tracked by person, and subcontractor invoices that separate labour from materials, turn the registration estimate, the February annual return, and a clearance request into routine tasks instead of a scramble. If you're still deciding how your business is set up before you hire, start with Sole Proprietorship vs. Corporation.
This article explains WCB-Alberta registration, premium and reporting rules under the Workers' Compensation Act, the Workers' Compensation Regulation (AR 325/2002), and the WCB-Alberta Policy Manual and Premium Rate Guide, for general education purposes. It is not legal advice and does not cover every exemption or circumstance. The rate in the example is illustrative only. For a coverage decision specific to your business, confirm directly with WCB-Alberta or a licensed professional.