Over the Road July 2023

Why us? DRIVE YOUR CAREER!

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1189694 Ontario Ltd. C.O.B. as Over The Road

Publisher Peter Charboneau peter@otrgroup.ca

Director of Operations & Editor-in-Chief

Cathryn Charboneau cathryn@otrgroup.ca

Account Executive Luke Zentil luke@otrgroup.ca

Account Executive Earle Madden earle@otrgroup.ca

Graphic Design & Advertising

lennykuiper.com

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Controller Estela Navarrete estela@otrgroup.ca

Office Manager Mary Charboneau mary@otrgroup.ca

All advertisements, and/or editorials are accepted and published by Over the Road on the representation that the advertiser, its advertising company, and/or the supplier of the editorials are authorized to publish the entire contents and subject matter thereof. The advertiser, its advertising company, and/or the supplier of the editorials will defend, indemnify and hold Over the Road harmless from and against any loss, expense or other liability resulting from any claims or suits for libel, violation of privacy, plagiarism, copyright or trademark infringement and any other claims or suits that may rise out of publication of such advertisement and/ or editorials. Press releases are expressly covered within the definition of editorials.

Networking. Support. Empowerment.

Robert D. Scheper

Incorporated Drivers and Tax Revolt

In the past, I have written and provided videos of my opinion of the “Driver Inc.” issue (now known as Incorporated Drivers). Given a personal choice, I would almost always advise a driver to NOT incorporate… primarily because when it goes through the court system, those who have used it will probably suffer a loss. They also lose the employer contributions to CPP and various labour entitlements associated with standard employment methods.

NOTE: In no way is my opinion of suffering loss “legal advice”, but at the same time, CTA’s advice shouldn’t be considered “legal advice” either. In the end, the judge will be the judge.

That being said, why would drivers do it? Why would a driver agree to not have any government protection and provision? I think the simple answer is to avoid taxes and programs that drivers may have learned to despise. You know the programs I’m talking about, right? Those programs which we send thousands of dollars to annually so that we can thank Ottawa for “returning” $180.00. Has anyone processed a workplace injury claim lately? How about (as a truck driver) applying for EI? Finally, and certainly not the least in the argument, is the Canada Pension Plan “benefits”.

In 2023, CPP contributions have finally tipped the scales into a negative ROI. The increase in both percentage and maximum contribution,

while not reflecting that increase in the benefit itself, is too much to ignore. Contributors who pay both sides of the program (employer and employee) will be paying more into the program than what they will be getting in return (a few variations depending on how close to retirement you are).

Those who wish to be an incorporated driver are not doing it to be “taken advantage of” but to take advantage by opting out of perceived wasteful and low-value, high-cost federal and provincial government programs (EI, CPP Workplace safety/injury). A single driver, instead of paying for all these programs, may simply collect dividends. No, they can’t offset dividends with RRSPs… but they don’t always have to. If they pay corporate taxes… dividends (+ dividend taxes) it just flows through to the owner(s). So, they don’t have a typical standard business model… big deal! If this is allowed by the courts… many who run the numbers and risk factors may also be opting out of T4 earnings and end up partially/mostly off the government tax grid.

Last month a new lobby group was presented: Canada Truck Operators Association (CTOA) which was (in part) formed to stand against the CTA’s push against Incorporated Drivers. Whether the CTOA will be successful or not in their stand of support for Incorporated Drivers will be left to be seen. Besides the Incorporated Drivers issue… CTA needs

some sound competition in their lobbying practices. Competition is always good. No matter what the outcome is, I applaud their strong independent stand against useless government programs and for providing another voice for the industry.

I represent hundreds and hundreds of independent operators, who pay both employer and employee CPP… this is the first year I will be advising SOME operators near retirement to consider starting to pay dividends rather than CPP taxed T4 wages. I will advise them to take what they would have contributed to CPP and invest in TFSAs or even simple mutual funds in their corporations.

If these funds would average an 8.5% return, after ten years of contributing, they will have just as much investment income as what their CPP would be giving (amounts may vary depending on age, CPP history etc.). The best advantage is, when you die, the fund will still be YOUR asset… it doesn’t disappear when you die.

Maximum personal contribution per person is $3,479.60 (x2 for employer portion=$6,959.20) and that would be $579.93 per month (let’s round it to $550). Contributing $550 per month to a mutual fund averaging 8.5% over 10 years would give $100k plus change. Then you can stop contributing and take out $800 per month for 30 years or $735 indefinitely… and retain your original $100k. Now that’s a decent ROI… with no government interference.

The moment CPP went to a negative contribution return I viewed it as a tax… and not a retirement plan/program. Why would I voluntarily pay more taxes when I don’t have

to? I’ve contributed enough thank you… I’ll simply choose another option.

I don’t view Incorporated Drivers as “illegals”. I view them as those who have decided to fend off unwanted government programs and limitations. They have adopted a personal money management and risk model that excludes federal and provincial government programs.

Rearranging your financial, risk and business model is an ongoing exercise. I’ve run the numbers for various contributors with various histories of contributions. The numbers are not all the same; it very much depends on how close to retirement you are. Have a financial advisor run the numbers specifically for your history. Remember a few things… CPP benefits are immune to bankruptcy but not immune to CRA confiscation. This choice is very personal and very individualistic. Don’t just do what your neighbour does… make your own choice.

About the Author:

Robert D. Scheper is a leading Accountant and Consultant exclusively serving the Lease/ Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His second book “Choosing a Trucking company” is the most in-depth analysis of the independent operator industry today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.makingyourmilescount.com or 1-877-987-9787.

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Why do Recruiters Lie?

I know and have known lots of recruiters and I believe that very few recruiters lie. In most cases, they don’t purposely tell you something they know is not valid. But I do think that there is often miscommunication. An example is the time I told my wife that “I was working out of the office today”. She then allowed her daughter to have her car because she heard me say that I was working in my office and, she assumed that I would drive her to her office which is in the same building as mine. What I meant when speaking to my wife is that I was working, but at a customer’s facility.

I could see how she interpreted my response when I examined the words that I had used to answer her question. Of course, this led to some changes in our plans.

Can you see how my words were not clear? This is an example of poor communication. I do believe that this is what sometimes happens between truck driver applicants and recruiters. Maybe a question is not straightforward, or perhaps the person hearing it

Chris Harris

interpreted a question differently than it was meant to be.

So how do we overcome these communication problems? Since communication is a two-way process and miscommunication happens frequently in our world, we need to devise a plan to get the answers we need to make the best decisions.

One method I found to work for me is asking the same question again but using different words. Another way is to restate the answer in your comments. For example, you ask the recruiter, “Will I be home every night?” The answer you get is “Yes, you will sleep in your bed!”

Did the recruiter lie, or did they hear your question as “Am I sleeping in my truck?” We all hear the words and then put our “spin” or filter on what we hear. We are always trying to interpret what we hear.

With the example of, “Will I be home every night?” The recruiter assumed you were concerned about seeing

your family regularly. But you could be concerned with your circadian rhythm patterns and wanting to sleep at night and in a bed.

It is also important to remember that many truck drivers may not have English as their first language. And many recruiters may also be the same. And if the two “first languages” are different and the two people are trying to speak English so that they can communicate? Well, this is a recipe for miscommunication.

So, the communication process depends on the people who are trying to communicate. The questions need to be well thought out and stated clearly. And the responses need to be well thought out and noted clearly too. Unfortunately, this seldom happens. And that’s not to say that it seldom happens between trucking company staff (dispatchers), drivers and recruiters. I am saying it seldom happens in my world.

We all take communication way too lightly. Most of us think that we are excellent communicators and that we are very clear when we ask a question. I have realized that this is often not true.

When looking for a new position, you should pre-write down your questions.

You can ask others to read your question and give you feedback. When you ask your question and get your answer, restate the answer. Using the example above regarding being home nightly, if I get the response, “Yes, you will sleep in your bed.” I could repeat the answer, “Great; I look forward to going to bed at 11 PM every night and waking at 5:30 for work”. If the recruiter agrees with your statement or doesn’t correct you, then you can assume that you and the recruiter heard each other correctly and communicated clearly.

I truly believe that very few recruiters lie outright to drivers. I think that poor communication happens frequently, and we then feel like someone has lied to us. Try my two tips for restating the question and saying the answer differently to see if this helps.

Let me know what you think. Be Safe.

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“Amazing support staff.”

Ellen Voie

“A Gender Twist Perspective”

If we could find a way To get inside

Each other’s mind, If you could see you Through my eyes

He started driving in 1994 and has been over the road since 1998. He’s married and has five grown children and is Tony when he’s not in his truck.

Why would Tony change into Tina when he goes to work? It all started when he decided to conserve fuel and began driving under the speed limit. He started getting harassed by other drivers on the CB. They’d make comments about the ‘old man’ behind the wheel. He noticed that they didn’t seem to give female drivers the same scrutiny, so he thought he’d test his theory and he purchased a wig!

– Joe South

Joe South wrote a song called, “Walk a mile in my shoes” and it was recorded by Elvis Presley in 1970. The point of the song is to consider another person’s point of view because you can’t truly understand their experience.

Tony (not his real name) can give you two views regarding gender diversity in the trucking industry. His alter ego, Tina, is a professional driver and owner-operator. I met him at a truck show and was interested in his perspective. He shared his story with me to provide our readers a different view from a ‘female’ driver perspective.

If you looked at Tony you would think he resembles a middle-aged computer programmer, which is his former profession.

Suddenly, no one said a word about his speed as they believed he was a female driver. If he left the wig on when he went into a truck stop, everyone just assumed he was a hippy with long hair. Tony decided to add to the ruse and started dressing in women’s clothing because he was aware of the disrespectful stares he received when people saw him as a hippie. This didn’t really change things much, so he figured he needed to look more the part of Tina, so he took it further and wore long sleeves and high necklines until he decided to shave his body hair and added shapewear and prosthetics to be more realistic.

By this time, Tina was his persona when he was in the truck and making deliveries. Tina was treated differently than Tony and most everyone seemed more helpful and were overall nicer to her. Tony explains this by saying folks are just more polite and tolerant of

Instead of your ego I believe you’d be Surprised to see That you’ve been blind.

questions Tina had to ask. They are also much more likely to strike up a conversation with Tina than they were with Tony. Some people wondered if Tina was transgender, but others accepted her explanation that she had taken hormones for a while, which made her voice lower and face more masculine.

When asked for an ID at shippers or for law enforcement, Tina shows Tony’s CDL and explains the temporary gender change. When on the job and is not being asked for an ID, she is sometimes asked about her gender but always insists she is a woman. Tony admitted, “My objective is to pass as a cisgender* female.” Tina says that near as she can tell, the appearance and persona projected is complete and other than her two ‘tells’, she is accepted as female. Spending extra time on her appearance and voice completes the picture.

When asked about the response from Tony’s family, he said his wife (who is aware of his ploy) is married to Tony, and Tina only appears when he leaves home and enters the truck. In fact, many of her customers have never met Tony and just accept Tina as she makes her deliveries. “I’m in an occupation where once I get in the truck and leave the yard, no one knows who I am,” he said.

In Tony’s experience, he feels “there is a definitive, half-step nicer approach” when it comes to how female drivers are treated. “As women, you don’t see this” he added. “I can’t define it, but it’s a different level of respect”. He feels that because women have been treated this way for most of their lives, they don’t see this as ‘better’ but just ‘normal’”. He also believes that the fact that female drivers are still in the minority could be part of the reason for the difference in the treatment of women in this industry.

Tony has no plans to physically change his gender and he is happily married to his wife of nearly thirty years. His children are aware of his work transformation. One of his sons is in the process of changing from a male to female as a transgender, and Tony is fine with the decision and supports him.

When asked about the future, Tony said he will continue to be Tina until he retires. He lives by the adage to ‘Be Nice’. Although, from his perspective, he feels that women are ‘expected’ to be nicer, he has always lived by that motto, and it’s served him well as a professional driver.

Joe South was right when he wrote, “I believe you’d be surprised to see that you’ve been blind”. None of us can truly understand another person’s perspective until we’ve walked a mile in their shoes. Tina’s shoes are different than Tony’s and her insight into how female drivers are received in this industry is her own, but one worth sharing.

*cisgender is a person whose gender identity corresponds with the sex registered for them at birth.

Ellen Voie President/CEO/Founder of Women In Trucking, Inc.

ellen@womenintrucking.org

www.womenintrucking.org

Mission: Women In Trucking was established to encourage the employment of women in the trucking industry, promote their accomplishments and minimize obstacles faced by women working in the trucking industry.