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Q: Can a motor carrier require a driver to submit to a random drug test while he/she is scheduled off-duty i.e. illness/vacation A: Yes. Guidance from DOT says an individual’s name should not be removed from the random pool so long as there is a reasonable expectation of the individual’s return to duty. This includes when an individual is off work due to temporary layoff, illness, injury or vacation. According to the regulations, it is perfectly acceptable for the carrier to wait to notify the driver until he/she returns provided it is before the next selection period. If the driver is going to be off an extra long period of time and won’t be available for testing for that period, the carrier should select an alternate driver and document why this alternate was picked and tested instead of the original driver. Succession Planning for Family-Owned Businesses Out of necessity, every business owner must prepare for the day he or she leaves the business, whether it be due to retirement, disability or death. Family succession planning involves more than just selecting someone to step into the shoes of leadership; it also means preparing to pass down ownership of the business they personally founded and nourished through years of hard work. Some members of the family may wish to work in the family business, and others may not have the same desire. Yet the children are the heirs of the founders and the division of shares among them needs to be fair. By planning ahead, business owners and their descendants can avoid the kind of sad family feud that plagued the heirs of the deceased founder of U-Haul and hopefully enjoy a smooth and tax-efficient transition similar to that of the family of the late Sam Walton, founder of Wal-Mart. Family succession planning is best accomplished when planned ahead of time so business owners can identify their goals and establish a plan that makes sense in light of the family’s circumstances, the founder’s wishes, the value of the business and the time frames in which the founder believes he or she will retire and pass control (and eventually ownership) to the person identified as his or her successor. Planning in this fashion is not as difficult as it might first seem. Once started, many founders of family businesses find the going much easier than anticipated and the process based as much on common sense as it is good tax and estate planning. Let’s face it: you can either leave your business to your children & grandchildren under a well thought out plan that accomplishes what you want or you can leave what’s left of it to them after Uncle Sam and the creditors get through with it. The choice is yours. The bottom line is this: after working so hard all these years to build your business, there’s never a “convenient” time in terms of what’s going on with your business in which to suddenly be disabled or to die. And on reflection, retiring never seems to be exactly convenient either. So it is that every family-owned business must plan today as if tomorrow is the surprise appointment you didn’t know you had with the next life – the day you didn’t show up for work, the day in which the plan worked – or didn’t (because there wasn’t one). The choice for planning ahead is yours. As my father used to say, “ The difference between a hero and a fool, is timing.” Do this for yourself as much as for your family. Don’t let time run out on you by surprise call us at 1-800-805-0040 today and ask for a consultant. How to Pay Yourself. Before you decide how many hours and what type of benefits, if any, you can afford to give an employee or driver, you need a compensation structure for yourself. You’ve put endless amounts of time, tears and cash into your business, so how do you start pulling something back out? Small business owners can compensate themselves in several ways. Many depend on how the business is structured. Each withdrawal must be weighed against the impact on the health of the business and taxes. Here are a few ways to reward yourself for your work: Bonuses - This is an easy way for owners of sole proprietorships, partnerships or limited liability companies to pay themselves at year’s end once profits have been totaled. They can be coupled with small “draws” during the year. Dividends – Profit distributions, or dividends, are exempt from self-employment tax, a big plus for S-corporations which distribute money in two ways: wages and profit distributions. Draw – Unlike corporations, entities such as partnerships, LLCs or S-corporations are taxed only once. All profits go to the owners, so you take wages, or a “draw”, and report it on your personal return. Fringe benefits – These extras can add up. Many of them are business deductions and can include: · A Company car · Paid vacations, holidays, and sick days · Life insurance – Split plans can benefit owners and employees · Reimbursement accounts, such as medical and dependent care · Retirement plans – a tax exempt method to build up personal wealth from the business Income shifting – Certain small business owners can shift income to a lower tax bracket and avoid some payroll taxes by employing family members. Income to children under age 18 is not subject to Social Security withholding (FICA). Wages to those younger than 21 are not subject to unemployment insurance (FUTA). Income to children remained tax free up to $4,250.00 in 2003. Wages you pay a spouse are subject to FICA, but not FUTA. Straight salary – This is important only in the double-taxation situation of the corporation whereby corporate tax rates are imposed on profits minus expenses, including salaries. Any profits left are distributed as dividends. You determine the size of the salary you take after weighing who gets the greater tax benefit of the salary deduction – you or the corporation.
The NorthAmerican Transportation Association is a nationwide transportation benefit organization established to provide services, benefits and information to Private Fleets, Trucking Companies and Owner-Operators. We are the only association that provides our members with more FREE services and benefits than any other.
For more information call (562) 279-0557 in California or 800 805-0040 or you can e-mail me at wayne@ntassoc.com Remember, tell those who doubt your profession, “ If you’ve got it… A TRUCKER BROUGHT IT! Until next month, Drive Safely – Drive Smart!”
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