Settlements · Deductions · Escrow · Disputes

Understand every line on your settlement

Plain-language guides to how trucking settlement statements are built: what each deduction means, how escrow and chargebacks work, and what to do when the net does not add up.

United States Canada Owner-operator

Two tax systems, one statement

A settlement is built the same way on both sides of the border: gross, accessorials, then deductions. What changes is the tax and classification treatment underneath it.

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Short answer

A settlement statement is the carrier’s accounting of one pay period: gross line items for the loads run, plus accessorials such as detention or stop-off pay, minus a deduction block. The deduction block is where most disputes live — insurance, plates, ELD, trailer rent, escrow contributions, advances and chargebacks. Reconcile the gross against your rate confirmations first, then work down the deductions one line at a time.

Frequently asked questions

What is a settlement statement in trucking?

A settlement statement is the carrier’s accounting for one pay period. It lists the gross earned on each load, adds accessorial pay such as detention, layover or stop-off, then subtracts a block of deductions to arrive at net pay. Employee drivers usually receive a pay stub with source deductions; owner-operators and lease-operators receive a settlement that looks more like a reconciled invoice.

What deductions are normally taken off a settlement?

Common lines include occupational or physical damage insurance, plates and permits, ELD or telematics fees, trailer or tractor lease payments, IFTA and fuel tax reconciliation, escrow or maintenance reserve contributions, advances and fuel-card draws, and administrative fees. Which of these are permitted, and whether they need your written authorisation, depends on your lease or employment agreement and on the jurisdiction.

What is an escrow account and when do I get it back?

An escrow or maintenance reserve is money withheld from your settlements and held by the carrier against future costs such as damage, equipment repairs or final reconciliation. Your agreement should say what it may be spent on, whether it earns interest, what accounting you are entitled to, and how long after the lease ends the balance must be returned. Read those terms before you sign, because they vary widely.

Why is my detention pay missing from the settlement?

Detention is the single most commonly dropped accessorial, usually because the documentation that substantiates it never reached billing. Arrival and departure times need to be evidenced — signed bills of lading, gate timestamps, ELD records or check-call logs — and the claim usually has to be submitted within a window set by the rate confirmation. If the paperwork is thin, the line quietly does not appear.

What should I do if my settlement is short?

Reconcile before you escalate. Match every load on the statement against its rate confirmation and bills of lading, list the specific lines that differ and by how much, and check whether the gap is an unpaid accessorial, an unexpected deduction, or a load billed to a different period. Then put the discrepancy in writing with the supporting documents attached, rather than raising it verbally.

Do owner-operators charge GST/HST on their settlements?

In Canada a registered owner-operator generally charges GST or HST on the services they invoice to the carrier, and separately claims input tax credits on eligible business expenses. Registration obligations, place-of-supply rules for interprovincial work, and zero-rated cross-border freight all complicate this. Confirm your specific situation with CRA or your accountant before relying on any general description.

Is truckpaypro.ca where I sign up for TruckerPro?

No. This site is educational. Free company signup happens on the TruckerPro TMS at tms.truckerpro.ca/company-register, and the product and pricing pages live on truckerpro.ca.

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