In most cases, when buying a business in Manitoba, that business’s account history with the WCB will also transfer to you. This includes:
- the claims cost experience of that business
- the WCB rate of the business.
The seller should give you a Disposition of Business Enterprise Certificate that they receive from the WCB. This certificate confirms there is no outstanding debt with us.
If you do not secure this, you may be responsible for any monies owing on the seller's account.
When telling the WCB that you are buying a business, you should be able to say whether you are buying shares of the business or the business assets.
An asset sale involves the purchase of some or all of the assets owned by a company. Examples of common assets include:
- Records and intellectual property
Where the majority of assests are sold, the claims experience and WCB rate is also transferred to the new owner.
In a share sale, the buyer purchases shares in the corporation and becomes an owner. All business assets remain with the company, it is the company owner that changes. As the new company owner, you are responsible to make sure you have the correct workers compensation coverage. You are also responsible to make sure that your payroll estimate is accurate for the calendar year.
If you are not running the business the same way as the previous owner, the differences may warrant some changes to your WCB account.
Contact the Assessment Services Department to confirm if any changes need to be made with your new business.
In Winnipeg: 204-954-4505
Toll-free: 1-855-954-4321, ext. 4505