Thursday, January 22nd, 2026 | 95 Reads
If you run a small fleet or trucking business and hire other incorporated truckers to help carry the load, there’s a big CRA change you need to know of that affects how you handle T4A slips and report payments for subcontracted services.
TLDR: The bottom line is if you’re in the trucking business and you pay other incorporated truckers or companies for their services, make sure you report those payments on a T4A. The CRA is now enforcing the rules and no longer turning a blind eye to unreported service payments in the trucking industry.
The Moratorium is Lifted
The Canada Revenue Agency (CRA) has officially lifted the moratorium on penalties for failing to report payments for services on the T4A slip.
If your business falls under the trucking industry this is something you can’t afford to ignore. A moratorium is
The moratorium in this case was a temporary pause on penalizing businesses that didn’t fill out box 048 on the T4A form for service payments.
The pause on the moratorium is now over. Starting with the 2025 tax year, if you pay incorporated truckers or companies more than $500 for services in a year and don’t report it properly, you will face penalties.
What Changed?
Back in 2011, the CRA put a pause on enforcing penalties for businesses that didn’t complete box 048 on the T4A form, which reports payments made to other companies for services.
The idea was to give businesses time to adjust but that grace period is now over. Starting with the 2025 tax year, businesses that don’t properly report payments over $500 to Canadian controlled private corporations (CCPCs) in the trucking industry could face penalties.
Does This Apply to You?
If more than 50% of your income comes from trucking/hauling freight, arranging shipments, or closely related activities, you’re considered part of the trucking industry.
So if you hire incorporated drivers or other trucking companies to handle some of your loads, and you pay them more than $500 in a year, you’re now required to issue a T4A slip and report that payment to the CRA in box 048.
This applies whether you’re a single-truck operator or running a small fleet.
Why the Crackdown?
This change is part of a broader effort to target tax avoidance and/or misclassification of workers, especially under the “Driver Inc.” model.
Many businesses under the Driver Inc. model have been classifying drivers as independent contractors when, in practice, they’re treated like employees.
This misclassification allows companies to sidestep employment standards and avoid contributing to CPP and EI. It also denies drivers the protections they’d receive as proper employees.
The federal government is investing $77 million over four years to support these compliance efforts and to ensure consistent enforcement across the trucking industry.
That includes making sure drivers receive proper documentation and aren’t left scrambling at tax time without the slips they need.
What Do You Need to Do?
Here’s what trucking businesses should do right now:
- Open a payroll account with the CRA if you don’t have one.
- Track all payments to incorporated service providers in the trucking industry.
- Issue T4A slips by March 2, 2026 (the usual February 28 deadline falls on a Saturday).
- Complete and submit a T4A Summary to the CRA covering all those slips.
If you’re a driver who has incorporated yourself and receives payments for your trucking services, expect to start receiving T4A slips from carriers.
You’ll still need to file your corporate T2 return and possibly issue your own T4 or T5 slips, and report your income properly.
More info on how to meet these new reporting rules is available on the CRA’s compliance page.
Practical Words of Advice from an Accountant
Accurate T4A reporting helps protect your business by reducing audit risk and supporting your expense claims. It also demonstrates to the CRA that you’re following their requirements. If you’re unsure how these changes specifically apply to your operations in Simcoe, you can speak with a tax professional who will help you through the process.
