Trucking has filings most businesses never see: a federal tax on heavy vehicles, fuel tax shared between states, and meal allowance rules written for drivers. Miles, fuel and driver pay need tracking from day one.
The points where tax and accounting rules come into play are numbered.
Numbered points are explained below.
At: Buy or lease trucks
Each heavy truck carries a federal tax of its own, with a deadline separate from your income tax. Trucks with a taxable gross weight of 55,000 pounds or more are subject to the federal heavy vehicle use tax, reported on Form 2290; it is due by the last day of the month after the month the vehicle is first used on a public highway.
We track when each vehicle is first used so its deadline is on your calendar.
At: Hire drivers
How a driver is classified decides who owes payroll tax on their pay. Whether a driver is an employee or an independent contractor depends on control and independence, and leased owner-operators and company drivers are treated differently for payroll tax.
We review how each driver works with you and how they are paid.
At: Deliver across borders
Drivers on the road can deduct more for meals than most travelers. Transportation industry workers have a special standard meal allowance for travel, and drivers subject to Department of Transportation hours-of-service limits have a higher deductible percentage for meals.
We apply the transportation rules when planning per diem before year-end.
At: Fuel and road taxes
Fuel tax follows the miles you drive, so a missing mileage log becomes a tax problem. Carriers running qualified motor vehicles across state lines file one IFTA fuel tax return each quarter with their base jurisdiction, and the return shares the tax among the states where the miles were driven.
We record miles and fuel by state in the books so the quarterly figures are there when the return is due.
Revenue and costs per truck or lane, with fuel and miles recorded by state for IFTA.
Equipment purchases, depreciation and per diem are planned before year-end.
Form 2290, payroll and classification notices need an answer by their deadline.
Fleet decisions and fuel costs change cash needs quickly; a forecast shows it early.
For a vehicle first used in July, file between July 1 and August 31. For a vehicle first used later, the tax is prorated and due by the end of the month after first use.
A qualified motor vehicle has two axles and a gross vehicle weight over 26,000 pounds, or three or more axles regardless of weight, or is used in a combination over 26,000 pounds.