Dear Wayne,
If you remember back in April, I informed our readers how the government was cracking down on independent contractors by going after motor carriers claiming they were misclassifying their drivers. The motive is very simple - taxes. It's that simple, it's all about getting your money. The government has found that it is easier to get tax money from you, the independent, by going after the not so smart motor carrier. They penalize the carrier by a one time fine but now the IRS knows who you are and where you are. The IRS can now tax you year after year after year for the rest of your life. Not a bad deal for the government.
Leona Hemsley, who once owned the Empire State Building, said, "Only little people pay taxes." Well, she was right but she said it too loudly and drew attention to herself. She wound up in jail for tax evasion.
Fact in 1935, there was a court case (Gregory v. Helvering, 293 U.S. 454) that said, " The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits...(read more)
Wayne Schooling
President and CEO
NorthAmerican Transportation Association | |
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| The Risks of Misclassifying Workers |
Government Fines:
If the IRS or California Employment Development Department audits your firm, you must clearly show that your workers are really independent contractors...or your company will face large fines.
In other words... you're guilty until you prove your self-innocent by showing unequivocally that your independent contractors are NOT employees.
As of November 1997, State Fund Compensation Insurance has taken a corporate policy that any company using owner-operators will be treated as (more) |
| Ask The Fuel Expert |
 Is there room for "Green" in the current economy?
The upheaval in the financial markets this past month has added a pile of new pressures for business owners and managers. The hot buttons are managing cash flow and operating costs while also holding onto people and business volume. But, amid this re-ordering of priorities, is anyone still thinking about the commitment to become more environmentally conscious or has that been swept under the boardroom table as an unnecessary frill?
As we reorganize our priorities I suggest looking at our financial challenges and our promises to the environment as one key initiative. The two are connected.
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| Transportation Contracts |
LITIGATION AVOIDANCE AND THE RESOLUTION OF FREIGHT LOSS AND DAMAGE CLAIMS--A CASENOTEReproduced with the Permission of Miles L. Kavaller
A freight loss and damage case I recently litigated and tried served as a poignant reminder not only of the importance of contracting but also of the opportunity to address issues of specific concern for the shipper. The litigation would not have been necessary and I would not have suffered the only loss in my 25 years of practice had the subject matter been fully covered in the transportation agreement. But, we learn from our losses, not from our victories.The shipper is a major fast food restaurant chain. It had a transportation agreement with a large refrigerated motor common carrier, one of many carriers it used to distribute (more) |
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