CTOA accepts return of T4As…with conditions
The Canadian Trucking Owner-Operators Association (CTOA) says it is not fundamentally opposed to the reintroduction of T4A slips for independent contractors but wants the feds to consider the financial implications for small businesses.
The federal government announced measures in its budget to crack down on the misclassification of drivers, including lifting a longstanding moratorium on T4A slips and allowing Canada Revenue Agency to share information with Employment and Social Development Canada. This would create a paper trail that would make it easier for government to ensure drivers and their employers are fulfilling their tax obligations.
CTOA says it represents independent drivers, owner-operators, and trucking companies of all sizes from diverse backgrounds.
“Our mission has always been to collaborate on policies that strengthen professionalism within the trucking industry,” Tej Dulat, CTOA spokesman, said in a release. “We support transparency and compliance. However, policy must be fair, non-discriminatory, and sensitive to the realities on the ground and challenges faced by the small businesses.”
CTOA says the government needs to review the impact of reintroducing T4As on small businesses.
“The mandatory T4A reporting introduces a new administrative burden that can disproportionately affect these smaller entities compared to large corporations with dedicated compliance teams,” CTOA said in its release.
The Canadian Trucking Alliance (CTA), which fought to have the moratorium on T4As lifted, isn’t buying it.
“A lot has changed since the moratorium was introduced in 2011, and the idea that issuing T4As creates a mountain of red tape for small businesses is simply not true in 2025,” CTA president and CEO Stephen Laskowski said when the budget was released earlier this month. “The trucking industry is one of the largest in Canada, and it’s made up primarily of small businesses. Both large and small carriers alike have strongly supported this measure. Reintroducing T4As will help many small fleets stay in business, not harm them.”
CTOA also objects to the fact the T4A is initially being brought back only for the trucking sector.
“Fairness means equal rules for everyone,” Dulat said. “Trucking should not be singled out while sectors like construction, the gig economy, courier services, and delivery platforms operate under different or less stringent reporting frameworks. Uneven application creates a disadvantage and fuels consolidation within our industry.”
The organization recently took its message to Brampton City Council, where it introduced a motion that was passed recognizing the importance of the trucking industry. The motion condemned “harmful narratives” and hateful language directed at truckers from diverse backgrounds.
“Brampton’s motion is a major step forward,” Dulat said. “It finally recognizes the essential role of small carriers and independent drivers in keeping Canada’s supply chain moving. For years, national policy discussions were dominated by large lobby groups. This motion makes it clear that grassroots voices must be heard, not ignored.”
CTOA says it has already met with provincial and federal elected officials to express its concerns about the reintroduction of the T4A. It is asking for: a phased rollout preceded by education; dedicated support tools for small carriers; equal rules across all industries; and direct consultation with CTOA and diverse driver groups.
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100% agree, Mike!
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You are 100% correct on this issue I would go further and all across Canada and require lease and owner ops that work and insure under a company to pay them selves $27 per hour on payroll and send in gov EI CPP and income tax every month and O T R at $29 per hour plus overtime after 10hrs per day minis a deduction of $30 day per deim and only to get back next yr any over payment after filing income tax this should also apply at $20 hr for UBER and light delivery units under 10 000 kgs
Every one should be paying payroll taxes in my opinion and if those wage restrictions will not work we have too many people working as drivers in my opinion-
Owner Ops do declare salaries and pay taxes, CPP,etc. every month. It’s the drivers hired by Owner Ops that is causing the issues. The Owner Ops are not paying their share of taxes EI, CPP etc. that would usually be paid for an employee. Therefore the need for T4A’s. Gov’t also needs to wake up and clarify the rules. This should apply to all industries.
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T4A’s or not, Enforcement is the issue.
Non- compliant operators, T4A’s or not, will not change without enforcement, let’s get serious.
We have laws in this country and law abiding Carriers abide by them, the Driver Inc crowd do not!!!!
Enforcement is the only answer!!! When will that start???
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I agree fully. As a compliant carrier this increases red tape and further requires me to pay for resources to track all payments going out. Now the one off, side of the road, tire repair guy needs to provide me with so much more information so I can create the mandatory T4A at the end of the year. How do you think that will play out when the cowboy standoff comes into play when the bill has to be paid?
I feel that T4A’s are not the simple fix that the CTA and now the Feds believes it will become. Those carriers utilizing Driver Inc will not create T4A’s until enforced. Why would they take the risk their company will be implicated in improper classification of employees or take the risk that their drivers will be stung and quit?
Blaine is correct – more enforcement is the key. Get more CRA auditors out there checking books. See how they pay their drivers and to whom. Then follow the invoices and money to ensure the drivers are reporting ALL their income on their T2. Finally check to make sure that HST matches the invoice as usually one will claim it and the other doesn’t report. My guess is that you start with 10 randomly picked carriers and you’d be surprised what you’d find.
it is simple, if the driver is only working for 1 company he is an employee, if they have multiple customers they can identify as a small business. this should not include a single company/ employer running under multiple names either
Weasel words from the CTOA. Compliance is part of the foundation of any legally operated business, and software tools make payroll tax reporting a small part of admin. Whataboutism is another attempt to evade responsibility and continue competing outside of the federal and provincial laws. Enforcement must be continual and consistent across the industry to erase this environment of illegality.
They get no “Asks”. Follow the rules and regulations, field safe trucks on the road. Driver Inc. is a self inflicted wound, now it’s getting somewhat dealt with they want?. Hire qualified drivers, train your drivers and pay your fair share. Full stop
Owning and operating a small business in Canada is a privilege not a right. Same as a driver license. There are fundamental obligations and laws that must be followed. The T4A is one of them. If you, as a small business, are not willing or able to follow the law(s) and obligations as such – then you may want to consider becoming an employee. “Fairness means equal rules for everyone” – which should translate to ALL EMPLOYERS issuing proper taxation documents –
Following legal obligations could be considered a burden to all business’s, however it is a burden that is an obligation and a requirement, full stop.