Accounting for monies to drivers(IRS purposes)

[diamondusmc]

Hello, just wondering if anyone had some suggestions to doing the paperwork proving to the IRS and such on how much money you are paying drivers. What items or paperwork would prove where the money is going and to whom. Since I currently have a percentage going through Comdata and I mail the check for the other percentage(to driver). Also does anyone have or know of any spreadsheets to help keep track of everything, driver pay, maintenace, etc. Any suggestions would be greatly appreciated. Thanks.

 

[raceman]

To real honest with you, I suggest you get an Accountant and just report your info monthly or quarterly to him or her. You will make out better in the long run.

If you simply insist on doing it yourself then be prepared to prove everything you report, be prepared to miss out on a number of things you most likely will not know you can write of, take advantage of or simply not report.

Get a person that will agree via contract they will respresent you if ever audited.

There are a number of tax programs and spread sheets out there but it is very simple to hold your receipts, use Excel for a spread sheet and turn it in once a month.

As for your drivers, you report them as contrators being paid. You better have check stubs, checking record or some how have a summary from ComData if you pay them that way.

Raceman
OTR O/O

 

[davekc]

Raceman is giving you good advise.
Everything we do now is done via the computer.
The only exception would be year end 1099's. They are recorded electronically, but a hard copy of contract settlements(1099) for the year are mailed.
We keep seperate accounts for expenses and contractor pay.
Davekc
owner
20 years

 

[Broompilot]

I had to read this twice, Dave is correct. If you have still not hired an accountant by now your getting deeper and deeper into trouble. This is probably the biggest mistake anyone could make in paying contractors or employees.

Get this straightened ASAP as the problems that will hit you in the future will cost you three, four, or more times than if you did not hire an accountant.

 

[davekc]

Broompilot is right on.
Anyone in this business needs a tax professional.
Too many laws change every year to take this on yourself.

If you haven't paid, haven't been paying or filing, you are in need of a tax attorney rather than a accountant

Davekc
owner
20 years

 

[diamondusmc]

Thanks for the posts. I really appreciate the help. And yes, I do have an accountant. As of right now the driver receives partial settlement through Comdata(40%) and I will send a check for the remaining owed. As long as I have the Comdata printout showing who is getting what I guess I should be o.k. Just was unsure how a Comdata printout looks like. I know the card the driver has is in his name. Thanks again all.

 

[Fkatz]

IF you have any questions you may contact me at
Franklin Katz, ATP
Frank's Tax & Business Service
226 S. Cherokee ST
Kings Mountain, NC 28086
704-739-4039
704-739-3934 FAX
704-300-5143 Cell
and E-mail [email protected]
I specialize in Trucking- accounting, bookkeeping and income taxes

Frank Katz