CRA has recently increased attention on T4A reporting in the trucking industry, especially where businesses pay incorporated trucking contractors for services.
This matters because many trucking companies use subcontractors, owner-operators, incorporated drivers, dispatch services, and other service providers. Those payments can create T4A reporting obligations.
For businesses that have not been tracking contractor payments carefully, this is a warning sign: T4A slips are no longer something to leave until the last minute.
What changed?
CRA has published guidance around fees for services and T4A reporting. The key issue is payments for services that may need to be reported in T4A box 048 – Fees for services. CRA’s broader fees-for-services guidance also says businesses generally need to report service payments over $500 in a calendar year, usually on a T4A slip. See the CRA website for current guidance.
For trucking companies, this can include payments to incorporated contractors where the payment is for services, not goods.
Why trucking companies should care
Many trucking businesses have messy year-end records. Payments may be spread across accounting software, dispatch systems, spreadsheets, e-transfers, cheque runs, owner approvals, and subcontractor invoices.
That creates risk. If a business deducts contractor expenses but does not prepare the correct slips, CRA may ask questions later. Related T4ASlip article: What Happens If I Don’t File a T4A Slip?
The big mistake: waiting until February
T4A reporting is easier when the business collects contractor information before the first payment. A trucking company should know the contractor’s legal name, business number if incorporated, mailing address, total calendar-year payments, whether the payment was for services, whether GST/HST was included, whether the contractor is resident or non-resident, and which T4A box applies.
Related T4ASlip article: T4A Data Collection Toolkit: What to Ask Contractors Upfront
What should be reported?
For fees for services, CRA says the amount reported in box 048 should generally exclude GST/HST and PST. That means businesses need clean payment records, not just total invoice payments. Reference: CRA T4A slip information for payers.
Example: service invoice $2,000; HST $260; total paid $2,260; possible T4A box 048 amount $2,000.
What trucking companies should do now
- Pull a list of all contractors and vendors paid during the year.
- Identify which vendors provided services.
- Separate service amounts from sales taxes.
- Confirm names, addresses, and business numbers.
- Flag missing information early.
- Review totals before filing.
- Keep invoices and support in one place.
Related T4ASlip article: How One Small Business Cut T4A Prep Time by 80% with Automation