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Equipment allowance
WorkSafeBC gives prime contractors equipment allowances when they report and remit for unregistered subcontractors who provide certain types of equipment. The equipment allowance is subtracted from the contract value, with the understanding that the contract price includes payment for the operation and maintenance of the equipment.
For example, a construction contractor hires a backhoe operator who provides a backhoe on a $10,000 contract. The backhoe operator is not registered with WorkSafeBC. When the contractor remits for the coverage of the backhoe operator, the labour value of the contract that the contractor may report as assessable is $6,000 because there is a 40 percent equipment allowance for backhoes.
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Contract value
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Equipment allowance
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Total assessable earnings
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$10,000
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40%
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$6,000
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There is no equipment allowance for crew transportation equipment such as pick-ups or crummies.
Contact the Employer Service Centre for more information.
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EQUIPMENT ALLOWANCE
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Equipment Type
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Examples
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Allowance
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| Chain Saw | Chain saws as used in forest industry and line-cutting contract only. |
15%
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| Medium Equipment | Single-axle motor vehicles used in the trucking/delivery/courier industry. Motorcycles used in the delivery/courier industry. Single-axle trucks used for construction cleanup. Pilot Cars. Light-duty excavating equipment such as backhoes, front-end loaders, and bobcats. Mobile welding units. Oil-well servicing equipment such as wireline fracturing, hot-shot service, ambulance/first-aid service. Agricultural equipment such as tractors, hay balers, harvesters, combines, and hoof trimmers. Horses used as part of a horse-logging contract. Boom boats as used in the forest industry. Fishing boats as used in the fishing industry. |
40%
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| Heavy Equipment | Skidders, feller bunchers, grapple loaders or similar heavy equipment used in the logging industry. Tracked earth-moving equipment such as bulldozers and excavators. Graders. Dual-axle trucks such as logging trucks, tractor-trailer trucks, dump trucks, and oil rig transport trucks. Oil-well drilling equipment. Mobile cranes. |
75%
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