Truckers
What we can do for you?
If you are considered an independent owner-operator truck driving business, you are not covered for WSIB insurance automatically, you should consider opening a WSIB account and take cover. If you are considered a worker (though you may be incorporated), the company employing your services, is usually responsible for your coverage with WSIB.
You can obtain a clearance certificate as a principal who hires an independent owner operator truck driver to ensure they are in good standing with WSIB to limit your liability exposure, otherwise, the liability can come crawling back to you the principal for their mistakes. You can contact WSIB for guidance as well..e. who pays for the truck expenses etc.) Control factors (i.e choice to select a vehicle, enter other contracts, control of operations etc.) Liability factors (i.e. who is liable in the work conditions) Profitability factors Employer-employee relationship in fact (i.e. are T4s or source deductions paid etc)
As a long-haul truck driver, you can consider creating a company policy for a daily meal allowance available to employees (T4), this allowance is a non-taxable benefit paid to you personally, but at the same time is fully tax-deductible for the corporation. You need to make sure you have proper documentation and procedures in place such as a logbook, travel expense forms, etc. This strategy is often overlooked but can save you thousands of $s in both corporate and personal taxes. You need to ensure you are using an accountant who deals with incorporated truck driver/owner-operators.
As an incorporated truck driver/owner-operator, by taking a salary you will be eligible for the Meals Allowance discussed above, and since you will be receiving a non-taxable meal allowance, your salary requirements will be reduced saving you in payroll taxes. If you still require additional funds, you can always opt for additional dividends during the tax year from your corporation.
By purchasing the truck under the corporation, you can fully deduct the purchase costs as depreciation which will reduce your corporate taxes. Since the trucking equipment will be under the corporate name, you will be eligible to pay all operating costs (i.e. insurance, repairs, fuel etc) directly from the corporation funds.
Track the KMs you traveled with your personal vehicle (not the truck equipment) and get reimbursed from the corporation tax-free, this is another non-taxable benefit you can receive and deduct as an expense for the corporation. As an incorporated truck driver/owner-operator, you will often find yourself doing small trips with your personal vehicle to the truck parking lots, visiting banks, the accountant, etc. these KMs are business-related and can be claimed.
Most incorporated truck drivers/owner-operators use a portion of their personal homes to maintain records and conduct office duties for the business. You can deduct a portion of the household expenses and get reimbursed from the corporation tax-free.