Driver Inc – The Epitome of Evil

Driver Inc. The epitome of evil? A scourge on the trucking industry? Or, is this the new way in the gig economy, the future of trucking employment.

Driver Inc. is a label that describes a tax-avoidance scheme in which truck drivers are treated as independent corporations rather than employees - even though they function as employee drivers. Instead of being paid wages with source deductions such as income tax, CPP, and EI, the driver is paid as a corporation. No payroll deductions are withheld by the carrier.

Carriers avoid paying employer portions of CPP and EI, workers' compensation premiums, vacation pay, and other statutory benefits. Drivers receive higher gross pay because no deductions are taken at source. It also offers an opportunity to defer or reduce taxes.

It's becoming alarmingly popular. Recent data from government and other independent agencies suggest almost 65% of carriers in the province are now using the Driver Inc. model. Should you be too? This week's guest, Rick Morgan of Links Consulting has few words of caution for any driver considering this alternative.

Be sure you stay right to end. We'll show you what happens to your lifetime earning potential under this pay scheme. Here's a hint. Four Hundred Thousand dollars.

Thanks Howes Products, makers of Diesel Defender - a diesel fuel lubricator and injector cleaner with advanced IDX four detergent.