Controlling Interest

Avatar photo

According to CCRA (Revenue Canada), there are two scenarios where an owner-operator is free from the normal obligations of an employer:

1. A carrier or O/O contracts with a separate company, at arms’ length, to be provided with the services of a qualified driver. The driver is paid by this company, which deducts the necessary taxes and provides the required employee benefits. The driver cannot own the separate company, nor may his family.

2. A driver makes his services available to cover a vacation, holiday, or illness period not exceeding two weeks. The O/O hiring this driver may not be deemed to employ the driver given the short employment period and the absence of a long-term employer/ employee relationship. Note the expression “may not be deemed to employ.” Even if you hire someone for one working day, you are the employer and are subject to making the proper source deductions for payroll remittances.

It’s only by convention that Revenue Canada may recognize a short-term hiring situation and thereby dismiss the employer’s obligations as long as the contract driver reports the income.

Avatar photo

Jim Park was a CDL driver and owner-operator from 1978 until 1998, when he began his second career as a trucking journalist. During that career transition, he hosted an overnight radio show on a Hamilton, Ontario radio station and later went on to anchor the trucking news in SiriusXM's Road Dog Trucking channel. Jim is a regular contributor to Today's Trucking and Trucknews.com, and produces Focus On and On the Spot test drive videos.


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*