Trucking - 50102 and 50111

Trucking in Manitoba is a robust industry that boasts many trucking firms and related businesses. Because employment in trucking is generally a contract business, the workers compensation requirements of this industry can sometimes be confusing.

How are trucking companies classified?

All trucking, and businesses engaged in related activities, in Manitoba will generally be classified as either Cartage Trucking or Interjurisdictional Trucking under the Alternative Assessment Program (AAP); however, trucking firms delivering their own goods or hauling for one employer are usually considered to exist as a part of the industry in which the employer is primarily involved (for example, manufacturing).

Cartage Trucking refers to custom delivery services and includes dispatching services. This classification includes businesses supplying labour only to the trucking industry, performing maintenance duties exclusively for the trucking industry, supplying pilot cars, custom hauling of sand and gravel, and moving companies.

If a trucking business is operating solely within Manitoba, they will be classified within Cartage Trucking. A business providing trucking services as described above but who provides services within and outside of Manitoba may also be classified within Cartage Trucking but they also have the option to participate in the Interjurisdictional Trucking AAP and be classified accordingly.

Interjurisdictional Trucking through the AAP is for trucking firms who travel within and outside of Manitoba. The primary intent, and appeal, of this program is that it reduces the administrative burden on trucking companies with respect to workers compensation in each jurisdiction within which they travel. Companies reporting payroll through the AAP simply register with, (and report payroll and pay their premiums to), the province(s) where their workers live.

If you have an interprovincial custom hauling company participating in the AAP and do not have Manitoba-resident owner operators or workers and no business location within Manitoba, you do not have to contact the Manitoba WCB - once you register for this program with the compensation board of your home province, they will contact us to let us know you are participating in the AAP. Once we are informed, we will set up a file on your behalf. The file exists for the purpose of obtaining clearance status if someone is determining whether you can work in Manitoba. In addition, if one of your owner operators or workers is injured while in Manitoba, they will have the choice of applying for workers' compensation benefits from Manitoba or from their resident jurisdiction.

In order to be classified to participate in the AAP, firms must complete an application in the province or territory where their workers live. If you have owner operators or workers who live in Manitoba and would like more information about the AAP or an application form to participate, please click here.

Who is a worker within the trucking industry?

The trucking industry very often uses owner operators and as such, there is sometimes uncertainty around the issue of who is considered a worker to be included in the payroll information provided to the WCB each year. Generally speaking, whether your business is inter or intra city/provincial custom trucking, all your drivers, whether they are owner operators, contractors or employees, are considered your workers unless they carry their own Personal Coverage. Their eligibility to purchase Personal Coverage is determined based on the following:

  • If an individual you contract with employs workers of their own, and their payroll is over the annual minimum earnings level of $21,630 in 2013, they will not be considered your worker and may purchase Personal Coverage.
  • If they do not meet the above criteria, as determined by the WCB, the WCB will use a business test to further determine their status. If they are not determined to be an independent business as a result of this test, they will be considered your worker(s). If they are deemed your worker(s), you will need to report the labour portion of their contract payments (25% for long haul and 50% for short haul, excluding GST) as worker's payroll.

If the WCB determines that your owner operator does pass the business test, they then have the option of purchasing Personal Coverage; however, if they do not purchase Personal Coverage, they, and their workers, will be deemed your worker(s). As well, if they do not maintain their Personal Coverage, they will be deemed your workers. You can check the status of your owner operators by using the WCB Clearance Request System online.

Note: If you are from another jurisdiction, are not participating in AAP, and are trucking in Manitoba or you have owner operators trucking in Manitoba, you must contact the Manitoba WCB to determine if you are required to register in Manitoba.

 

What payroll needs to be reported in the trucking industry?

All workers payroll, including that of administrative staff, employee drivers (up to the current maximum assessable earnings level) and owner operators must be reported to the WCB. The process to calculate payroll for owner operators, and the labour percentages that apply, are described below in Calculating Payroll. Payroll earned by workers traveling out of country should be reported to the province where the driver lives. As such, if you haul in the United States and Mexico, payroll generated there by Manitoba residents must be reported to the Manitoba WCB. (Coverage is extended to Manitoba residents injured while working in the U.S. and Mexico.)

If your operations require you to haul in other provinces, contact the WCBs of those provinces to determine your responsibility under their Acts. Payroll of Manitoba residents operating in jurisdictions which do not require you to register with their compensation system must be reported to the Manitoba WCB.

 

Calculating Payroll for Owner Operators

 

Please note: The WCB maximum assessable earnings does not apply to owner operators.

Cartage Trucking - Owner Operators hauling within a city in Manitoba (Intra-city)

If you are in Cartage Trucking and employ owner operators who exclusively haul within a city (or within 16 kilometers of the city) in which your home terminal is located, in Manitoba, the earnings amount to report is 50% of their gross units' earnings. To calculate this, multiply your total gross earnings of all your owner operators by 50%.

 

 
 

Example:  Total gross contract value = $400,000

$400,000 X 50% = $200,000

Assessable Earnings = $200,000

 

 

 

 

 


 

Cartage Trucking - Owner Operators - long haul within Manitoba (Inter-city):

If you are in Cartage trucking and employ owner operators providing long haul services within Manitoba, the earnings amount to report is 25% of their gross units’ earnings.

To calculate this, multiply your total Manitoba gross earnings of all your owner operators by 25%.

Example:  Total gross contract value in Manitoba = $900,000

$900,000 (MB gross earnings) X 25% (MB labour percentage) = $225,000 Assessable Earnings for owner operators

 

Owner Operators hauling through more than one province:

 

Cartage Trucking - Owner Operators hauling within and outside of Manitoba (NOT participating in AAP)

If you employ owner operators hauling outside of Manitoba, the earnings amount to report in Manitoba is 25% of their gross units' earnings for the kilometers driven in Manitoba. If you do not participate in the AAP, you will need to determine and report the earnings for all your owner operators for each jurisdiction they travel in.

Step 1 Determine Percentage of time hauling in Manitoba:

  • To calculate the percentage of kilometers driven in Manitoba, divide the Manitoba kilometers by the total kilometers driven.
  • You also need to include all kilometers driven outside of Canada and include this total in your Manitoba kilometers

Step 2: Calculate Manitoba Gross Payroll

  • Multiply the Manitoba kilometers percentage (from step 1 above) by total earnings.

Step 3: Calculate Manitoba Assessable Payroll

  • Multiply the Manitoba gross earnings (from step 2 above) by 25% (this is the Manitoba labour percentage for Cartage Trucking).

 

Example: Total Gross Unit Earnings = $850,000

 

             ON               MB                SK                  AB                 BC             TOTAL

KMS             150,000          350,000        1,209,000            600,000         90,000      2,399,000

 

1)    350,000 (Manitoba KMS) divided by 2,399,000 (Total KMS) =14.6% Manitoba Percentage

 

2)    14.6% (Manitoba %) X $850,000 (total earnings) = $124,100 Manitoba Gross Earnings

 

3)    $124,100 (MB gross earnings) X 25% (MB labour percentage) = $31,025  Manitoba Assessable Earnings for owner operators

 

 

 

 

Cartage Trucking - Owner Operators hauling within and outside of Manitoba (participating in AAP):

If you are participating in the AAP, you will report the earnings of all your owner operators who live in Manitoba at 25% of their gross units' earnings.

 

To calculate this, multiply your total gross earnings of all your owner operators by 25%.

 

Example: Total Gross Unit Earnings of Manitoba resident owner operators = $850,000

 

$850,000 (MB gross earnings) X 25% (MB labour percentage) = $212,500 Assessable Earnings for owner operators