Business

Whether you’re a company driver or you own your own truck and business, income taxes can take a bite out of your take-home pay. Taxes may be inevitable, but in many cases, you have some control over how much tax you pay and when you pay it. Keeping your income tax liability to a minimum is a process that requires your attention all year long and requires some planning and management. How your business is structured makes a difference, too. For example, if you receive a W-2 from your employer, you probably file taxes like any other employee. If you own your truck and you receive a form 1099, you have more options. You can legally incorporate, in which case you may have to file both corporate and personal income tax returns. Or you can file as a sole proprietor — a sort of compromise in which your business and personal income are intermingled. Many drivers and business owners choose to file individual tax returns that include an IRS Schedule C, Profit or Loss from Business. Always consult a professional before deciding how to structure your business, and make sure each deduction you claim is valid and legal. It’s important to understand the difference between business and personal tax deductions. Business expenses such as fuel, vehicle parts and other items would be recorded on the Schedule C form. In simple terms, the profit shown on Schedule C is counted as your personal income. You can take deductions for your personal income too, including the standard deduction allowed by the IRS. The idea, however, is to claim all the business deductions you possibly can so that the amount of profit you report is as small as possible. Every dollar you can legally subtract reduces your tax liability. Keep in mind that capital expenses — those for purchase of your truck, trailer and some other property — are credited due to a depreciation schedule. Rather than deducting the purchase price of your truck, for example, you might claim depreciation. Your tax preparer can help you determine how much depreciation you can claim. If you sell equipment, your tax preparer needs to know that, too. Other expenses, however, are fully deductible. Keep track of costs for insurance, including occupational accident, bobtail and liability. Any fees or taxes paid to register your equipment, such as license plate fees, heavy vehicle use tax (HVUT), permits and ad valorem taxes are deductible. Other fees you pay can also be deductible. If you are charged fees for using your ATM or fuel cards, for example, keep a record. If you belong to trade groups such as the Owner-Operator Independent Drivers Association (OOIDA), your dues are deductible. Don’t forget to include any costs for DOT physical exams or fees to renew your CDL, add endorsements, or background checks for hazardous materials or TWIC cards. If you subscribe to a load board or pay brokerage fees, deduct them. Any fees paid to incorporate your business, or even fees paid to consult an accountant or attorney, are deductible. Of course, costs for parts and repairs are deductible, but don’t forget truck washes, wheel polishing or expenses to detail your equipment. Many of your road expenses are deductible, too. Costs for parking, scales, tolls and showers are all deductible. Cleaning supplies like window cleaner and paper towels are deductible if the products are used for the truck. The same applies to tools you need for the job. If your truck is in the shop and you need a hotel room, rental car or just need to do some laundry, those expenses are deductible. If you travel with a dog that provides security for the truck, you can deduct expense for food and other items. Expense for electronics you use in your business are also deductible. That includes your ELD and payments for satellite communication devices, and it can also include the monthly cost for cellphone service or a land line installed at home. If you use the internet in your business, deduct that cost, too. Even entertainment items like satellite TV or radio are deductible. The costs for any buildings or property that you rent, such as a garage or parking area, are deductible. The IRS also allows a deduction for a portion of your home used for your business, including utilities, security and repairs made. Your tax advisor can help you calculate this. Mileage on your personal vehicle can also be deductible at a rate per mile set by the IRS each year. You must keep track of the miles used for business. Expenses for items you may not have even thought of may be deductible, too — sheets, blankets and pillows for the bunk in your truck; locks or securement equipment; and coolers, refrigerators or other appliances used in the truck. Disposable items, such as trash bags, air fresheners and batteries are deductible. If you carry exercise equipment, lawn chairs or other items for personal use, the cost may be deductible. Don’t forget the cost of safety items used on the job, like hard hats, gloves and work boots. If they are used for your business, they should be deductible. It’s a good idea to save receipts for any items you purchase throughout the year. Writing short notes on the back of receipts can help you remember the business use of the item you purchased. It may also help in the event the IRS audits your return. You can deduct a portion of the cost of meals and incidentals while on the road. Most drivers find it easier to claim the per diem allowed by the IRS, which specifies a daily amount for these expenses. If you choose the per diem, you won’t need to save receipts for meals and incidentals — but you will need to keep track of how many days you were on the road. The per diem is only paid when you are away from home. If you aren’t sure if an expense is deductible, keep a record and save the receipt so you can ask your tax preparer. No one likes paying income taxes, but with some planning and careful management, you can keep yours to a minimum.

Most drivers learn quickly that all driving jobs aren’t the same. It seems there’s always a better job waiting — one with more pay or better home time, newer trucks or more driver-friendly freight, routes that go through sunny southern states and never to the big city, and so on. Whether you’re applying for your very first driving job or you’re an old hand in the industry, understanding how the hiring process works and preparing yourself is a good way to help ensure you get the job you want. The trucking industry is unique in that the job “interview” is seldom a single face-to-face meeting with a prospective employer. Instead, the first interview often happens by phone and involves a recruiter. After background checks are completed — and assuming that both you and the carrier are interested — you’ll be invited to orientation. While it’s easy to think that this invitation means you’re hired, many drivers don’t realize that orientation is, in many ways, a continuation of the job interview. You’re learning more about the carrier and what you can expect when you get to work. At the same time, the carrier is gathering more information about you, often including testing to evaluate your skills, knowledge and even your attitude. If either you or the carrier determines the job isn’t a match, the process can be stopped before you’re out on the road in a truck. Preparation is the key to every stage of the interview. Carriers are required by regulations to gather specific information from you and to check your background. For example, it might seem simple, but it’s amazing how many drivers show up to orientation without their CDL and Social Security card. The employer is required to fill out a form I-9, a document they sign signifying that they have verified your identity and that you are legally authorized to work in the U.S. Your CDL and Social Security card provide the needed proof. Other documents, such as a passport, may be accepted — but you don’t want to be scrambling to find documents while you’re in orientation. Other information the carrier must have a record of is a list of all of your employers for the past five years, and all DOT-regulated employers for the past 10 years. Failing to disclose a particular employer can make it seem as if you are hiding something. Keep a list of former employers, including the dates you worked there and the reason you left, and include contact information. This is especially important if you’ve worked for smaller carriers, such as farm operations; it’s often difficult to contact someone who has access to employment records. Update this list each time you change employers. Here’s a bit of advice about your reason for leaving employment: Prospective employers look for patterns in your employment history. If you left your last job because you needed more pay, that’s fine. If you left your last six jobs, all for more pay, and you only stayed a few months at each job, it’s easy for a recruiter to predict you’ll leave your new job as well. Resist the urge to disparage a previous employer. Anyone can have a bad experience, but if your application is filled with negatives about the carriers you previously worked for, recruiters may quickly decide that the problem could be YOU, not the employers. If you did have a bad experience, you need to be able to rationally explain what happened. Leave emotion out of the conversation. State the facts as best you know them. Everyone makes mistakes, and everyone sometimes has to work with difficult people. If you calmly explain what happened, what you did to try to fix the problem and what you learned from the experience, you may help the recruiter to be empathetic about what happened. Also, make sure your employment record matches your statements. Your prior employer will provide their version of why you left, including whether you resigned or were fired. They may also report accidents, incidents and other information, including whether you quit while under dispatch or abandoned your truck. Motor Vehicle Reports (MVRs) and your Pre-Employment Screening Program (PSP) report may also show accidents or citations. All of these are available to you before you even apply for a new job. A quick way to make a recruiter suspect your side of the story is if it differs from the evidence in the records. Remember that an interview should involve a two-way sharing of information. It helps to make a list of what you expect from your new employer. Start with what’s most important to you. It’s better to discuss those things with a recruiter prior to orientation, but you should never get in a truck and go to work without having your questions answered. One thing that’s often misunderstood is the rate of pay. Recruiting advertisements often tout a best-case scenario but may not include pay for empty miles or pay rates that change due to trip length or region. Make sure you understand accessorial pay like detention, layover and breakdown. When you’ll be paid is often as important as the amount. How long does the carrier hold back? What are paperwork requirements? What if you need an advance? That shiny new truck in the photo may not be like the one you are assigned. You may be required to run the Northeast or to colder parts of the country in winter. You may be required to load or unload trailers, or to assist in the process. Home time is an issue that too often isn’t clarified. What does “home every weekend” mean? Will you get home on Friday and leave on Monday? Or will you get home long enough for a 34-hour restart at some (not guaranteed) point during the weekend? If it’s important to you, ask. Remember that the folks at home will have questions, too. It’s a good idea to find out what’s important to a spouse or loved one so you can provide answers. The old adage, “you never get a second chance to make a first impression” holds true. Start your job off right by cruising through the interview process.

CHARLOTTE, N.C.  — The oldest black-owned business in the U.S., E.E. Ward Moving & Storage Company, recently announced that it has expanded its operations to the Carolinas with new offices in Charlotte and Raleigh. “With so many pieces aligning and new partnerships forming, it was undeniably time for us to expand to the Carolinas,” Brian Brooks, president and co-owner of E.E. Ward Moving Company, said. “Our company was founded on principles of quality service and strong moral character, which has supported our growth from Columbus to Charlotte and most recently Raleigh. We are grateful for this historic recognition from northAmerican Van Lines and remain committed to providing moving and relocation services that our clients and partners can trust.” The northAmerican Van Lines Agent of the Year honor is awarded to the agent that receives the best overall scores in service quality, hauling growth, sales growth and safety performance, as well as demonstrates the “Power of Blue” by supporting fellow agents and customers. In addition, as the country prepares to celebrate Black History Month, E.E. Ward Moving & Storage Company — recognized by the U.S. Department of Commerce as the oldest continuously Black-owned and operated business in the U.S. — will be the first Black-owned agent to receive the northAmerican Van Lines Agent of the Year award. The award presentation will be held Feb. 7 at the company’s new office in Charlotte, North Carolina. “Safety. Quality. Customer Service. Teamwork. These four components have been the foundation of the northAmerican Agent of the Year award since its inception,” Kevin Murphy, vice president and general manager of northAmerican Van Lines Inc., said. “Winning agents, like E. E. Ward Moving & Storage Company, demonstrate a true commitment to providing our customers with the best service and quality moving experience possible. We are honored to have an agent of their caliber as part of the northAmerican family and welcome them into the Agent of the Year winner’s circle, a distinction they richly deserve.” In addition to the Agent of the Year Award, E.E. Ward Moving Company has received numerous honors and accolades over the years, including 2020 BBB International Torch Award for Ethics Finalist, 2020 northAmerican Van Lines Overall Quality Agent, 2019 CARTUS Commitment to Excellence Gold Award and the 2017 American Moving and Storage Association Moving and Storage Agent of the Year Service Excellence Award.

It happens every year. Or, every other year, if you’re young, healthy and lucky. What is “it”? It’s the dreaded DOT (Department of Transportation) physical examination. What once was biannual slam dunk for most drivers has evolved into an event that strikes fear into the heart of every driver who is a few years older — and a few pounds heavier — than when their driving career started. The exam that used to be a perfunctory “check the box” event is more comprehensive than ever, relying on the physician’s opinion rather than simply meeting test criteria. Hypertension (HTN), commonly known as high blood pressure, is a great example of how the DOT exam has changed over the years. HTN is very common among the U.S. population. Factors that can contribute to HTN include age, stress, obesity, smoking and more. Unfortunately, many drivers today are impacted by more than one of these factors. In the past, drivers whose blood pressure exceeded DOT limits had some options. Most clinics would allow a return visit to recheck blood pressure. Some advised the driver to test early in the morning, skip the coffee or take a couple of aspirin before trying again. The driver could retest as many times as the clinic would allow. If the driver still couldn’t pass, there was always the option of the clinic down the street, unless the driver’s employer specified a certain examiner. Drivers had favorites, sharing information about which clinics were more lenient than others or which had “problem” doctors. Drivers could even go to their private physician — or chiropractor or dentist — for a new exam. All that was needed were the proper forms. All that changed on May 21, 2014. That’s when the Federal Motor Carrier Administration’s (FMSCA) National Registry of Certified Medical Examiners, a list of medical professionals allowed to provide DOT physicals, became effective. On Jan. 30 of the same year, a provision that required each state to revoke CDL driving privileges of drivers who did not have a valid medical examiner’s certificate (MEC) on file went into effect. The new regulations changed something else, too. Rather than trying to get the right numbers to enter on a driver’s medical examination report, examiners were required to indicate that the problem was controlled. For many drivers, that meant a trip to their primary-care physician (if they had one) to be treated for high blood pressure or another condition identified in the exam. Sometimes the answer was as simple as a prescription for medication to treat the condition. While the requirements of the exam were getting tougher, new medical conditions were added to the list. One of the most notable of these was sleep apnea and, more recently, chronic obstructive pulmonary disease (COPD). Physicians started measuring neck circumference and calculating body mass index (BMI). More than a few drivers were surprised by a requirement to undergo sleep apnea testing as a requirement for passing their physical. Since many drivers taking pre-employment physicals are between jobs, insurance coverage for the testing — and any follow-up treatment isn’t available — putting the driver in a difficult situation. Even drivers who are working can have difficulty getting regular medical treatment. Appointments are sometimes scheduled months in advance, and getting home for doctor visits can be problematic. Drivers who don’t have health insurance coverage can have difficulty paying for services. Worse, many drivers don’t even have a primary care physician, reasoning that a walk-in clinic will suffice if they become ill. Obtaining and keeping a medical certification takes more effort than simply showing up for a physical exam once per year. Diet and exercise are important, of course, but passing that DOT physical (and keeping your driving privileges intact) begins with the right attitude about your health. It’s not about passing the physical. It’s about dealing with your health so you can continue in your livelihood — and your life. Let’s return to our earlier example of high blood pressure. Diet and exercise can certainly help lower blood pressure, but making the lifelong commitment isn’t something everyone can, or will, do. Even for those who are dedicated to getting in better shape, it can take months to lose enough weight to impact blood pressure readings. For many patients, the answer is a pill. Blood pressure medications are cheap, and it’s easy to get a prescription. The pills don’t take the place of diet and exercise, but they can have a quick impact on hypertension, reducing the risk of stroke or heart attack while reducing blood pressure enough to pass the physical. Unfortunately, too many drivers take the medication only long enough to pass the physical exam, or maybe they just use up the first bottle. By doing this, they are ignoring a disease that kills thousands of people every year. Hypertension isn’t going away by itself. In fact, it’s likely that it will get a little worse every year. Another common problem among drivers is diabetes, which typically shows up as glucose, a type of sugar, in a urine sample. Diabetes usually doesn’t go away by itself. When first diagnosed, it is usually treated with changes in diet, but it can progress to a point where medication is necessary. Medications might start with a prescription for pills and later progress until insulin is needed. As with hypertension, the examiner will want to know the disease is being controlled. The point is that many medical conditions are lifelong. It’s up to you to take responsibility for maintaining your health so you remain safe behind the wheel and will make it home to your loved ones. Take the time to review your DOT physical exam and discuss it with the examiner. If you don’t have a primary care physician, get one. Deal with your health issues before they deal with you. If you’re like most people, you’re getting older, you’re putting on a little more weight and your eyesight is getting worse. Go see your doctor.

Plagued by supply chain constraints throughout 2021, manufacturers of Class 8 trucks stepped up both production and sales in December, achieving the third-best December monthly sales to date. Only the final months of 2006 and 2018 saw more trucks sold on the U.S. market. According to data provided by ACT Research, manufacturers reported U.S. sales of 25,116 new Class 8 trucks in December, an increase of 47.6% over November sales of 17,021. While December is almost always the best sales month of the year, the final numbers were unexpected. After starting December with minimal inventory, North American production numbers accounted for the increase “The bigger story is that for the three month period of September through November, Class 8 build averaged perfectly at 1,000 units per day,” explained Kenny Vieth, president and senior analyst at ACT. “In December, the build was 1,549 units per day.” With shortages of semiconductors, plastics and other materials and components, OEM production numbers have been reduced all year. So, where did the parts come from in December? In a year that saw long wait times for ordered trucks and the implementation of price increases and surcharges, OEMs pulled out the stops to deliver as many trucks as possible. One possibility for the increased production is the backlog of “red-tagged” trucks at manufacturers. These are trucks that have been built but lack a critical component or two, so they’re stored until the parts arrive. Once parts are available, the trucks can be quickly finished and sold. Another is that components were pulled from another business segment. For example, semiconductors that normally go into aftermarket parts could be diverted to assembly of new trucks, with the assumption that builders can reverse the process in January, which is typically a slow sales month. However it happened, OEMs are unlikely to go public with any trade secrets. “The sustainability is another question,” Vieth said. “There’s the push to get those trucks off the books for 2021 and get them into the hands of dealers and customers. Customers wanted them in the fleet by year-end for the tax advantages.” In summary, a great December doesn’t mean supply chain problems have been solved and production will continue at a high pace. The wait is still a long one for new trucks, and units ordered today will take a year or more to be built and delivered. While orders for new trucks are still strong, ACT reported preliminary December orders of 22,800 trucks, a smaller number than seen in prior months. It’s not that customers don’t want more trucks. It’s that the build slots for 2022 are already filled and OEMs don’t want to accept more orders than they can produce before the next model year comes out. “Modest December net orders reflect OEMs taking a more cautious approach to effectively manage the cycle of customer expectations,” Vieth stated in a Jan. 5 news release. As long as business remains good, the trucking industry will keep ordering tractors. “The underlying demand metrics are still strong,” Vieth explained. “Freight rates are good, profits are good, the economy’s growing nicely. So, demand is in good shape. Truckers are gonna make a lot of money in 2022, and the manufacturers will build as many vehicles as supply chain constraints allow them to build.” The used truck market has also been impacted by the slowed production of new trucks. Although sales of used Class 8 trucks grew 4% over November numbers, they were 30% lower than December 2020. The reason is supply. Inventories have been depleted as buyers turn to the used truck market to find equipment. And, with fewer new trucks being built, fewer trade-in units make it to the used truck market. Average prices, which rise when the demand is high and supply is low, have increased by 42%, according to a Jan. 14 release from ACT. The average used truck age has increased slightly, and there are a few more miles on the odometer — a symptom of carriers holding on to trade trucks until replacements are delivered. All OEMs that provided reports improved in December, according to data received from Wards Intelligence; all numbers represent sales on the U.S. market. Freightliner topped the list with sales of 8,315, increasing 35.6% over November sales of 6,234. International sales increased 62.2% in December with 2,131 trucks sold compared to 1,314 in November. Volvo sales increased 78.6% from November sales of 2,048 to December’s 3,657 sold. Volvo-owned Mack more than doubled November sales of 1,356, selling 2,926 in December for a 115.8% increase. Kenworth sold 3,680 trucks in December, besting November’s 2,342 by 57.1%. PACCAR sibling Peterbilt sold 3,405 vs. 2,842 in November for a 19.8% increase. Western Star’s 609 trucks sold in December was 19.7% ahead of November’s 503 sold. For the year, Freightliner sold 8,315 trucks on the U.S. market, good for 33.6% of trucks sold by the major manufacturers. Peterbilt was next with sales of 32,810 and 14.8% of the market, while Kenworth followed with 32,301 sold and a 14.6% share. Together, the PACCAR companies represented 29.3% of the new Class 8 market in the U.S. for the year. Volvo captured 10.0% of the 2021 market with sales of 22,104, while Mack took 8.4% with sales of 18,668. Together, the Volvo-owned companies were responsible for 18.4% of Class 8 trucks sold. International’s year ended with 11.9% of the new, Class 8 market with sales of 26,387. Finally, Western Star’s 6,022 trucks sold took 2.7% of the market. As 2022 unfolds, it’s anyone’s guess how the trucking industry will be impacted by the Omicron variant of COVID-19. In the meantime, volatile fuel prices, the threat of severe winter weather and the possibility of war in the Ukraine are known variables that could negatively impact the supply chain. Still, conditions remain favorable for trucking through the coming months and possibly beyond.