how to pay yourself? - Truckers' Trucking Forum | Message Board

rdkatwell · **^ Top** #1 10.15.2008

Hello everyone,

We are new to the O/O world. Hubby recently went O/O and leased to Crete, He was an employee with them. He's still doing dedicated with them. He is leasing the truck from them. So far so good.. but I have a question.

How do you show your income? For yourself? Not the business? Also, I need to find some type of software where we can print paystubs at least to show our family's income.

He gets statements weekly from Crete that show his gross amount, and then after his truck payments, insurance, fuel, all that stuff comes out, it shows amount owed to operator. The thing is... this is going into a business checking account he opened in his name for the "business".

His plan for us, was to calculate our total expenses needed weekly for bills and such, and then pay himself out of the business account to cover our personal bills (by transferring this into our family's personal checking account).. but how can we show this on paper for tax time and for other companies that need to see proof of income?

For example, since he's went O/O we lost our health insurance, I am currently seeking insurance for our family (we have 2 small children) but in the meantime I am going to apply for state funded insurance for them and they have to have proof of income, and it's based on income. So therefore, I can't take them the statements from Crete, cause that is not necesarrily all personal/family income...some has to be set aside for the business...

any adivse? Thanks. (I think I may be making this more complicated that it needs to be)

Lilbit · **^ Top** #2 10.15.2008

How is his business set up? Is he set up as a sole proprietorship? An accountant would really be your best source for that kind of information.

MedicineMan · **^ Top** #3 10.15.2008

just write him a check out of the company account like you would anyone else that works for you. Just log it as payroll in your books for the accountant. That is for an LLC anyways. as a sole proprietor it is all his income as there is no seperation. I would suggest buying as many things as you can justify from the company account and only write his payroll for the MINIMUM you need. If you are trying to get state insurance i'm sure the income needs to be low.
now there is the whole subject of him being a lease operator. he's not an oner operator as he doesn't own the truck he's basicaly renting it. And depending on how the lease is written there is different IRS guidelines on how the equipment is claimed so you REALLY need a tax professional who knows trucking well

rdkatwell · **^ Top** #4 10.15.2008

Well we have an accountant, and she is dealing with that... and I will check with her tomorrow. I was just curious how others do it as well.

He is set up with a tax ID number for the business under his name.. not sure what that means.. but he didn't do any LLC or Inc. or anything because our attorneys said it really wouldn't make a difference. He hasn't even officially named the business (on paper or in writing anyway)

Lilbit · **^ Top** #5 10.15.2008

Then he's a sole proprietorship, which means - this is verbatim from a tax guy - you have a business in your mind only. That may sound a bit cold, but it really means that everything is his, including liability. The tax ID number is just another hoop. All income, assets, and expenses will come into play for the state medical insurance in this case.

rdkatwell · **^ Top** #6 10.15.2008

Quote:

Originally Posted by MedicineMan

just write him a check out of the company account like you would anyone else that works for you. Just log it as payroll in your books for the accountant. That is for an LLC anyways. as a sole proprietor it is all his income as there is no seperation. I would suggest buying as many things as you can justify from the company account and only write his payroll for the MINIMUM you need. If you are trying to get state insurance i'm sure the income needs to be low.
now there is the whole subject of him being a lease operator. he's not an oner operator as he doesn't own the truck he's basicaly renting it. And depending on how the lease is written there is different IRS guidelines on how the equipment is claimed so you REALLY need a tax professional who knows trucking well

He is paying for the truck.. it is in his name, he pays all taxes, tags, title, and such... he is leased to the company.

So I am just wondering if companies will accept a "paycheck" from himself to himself like that... and if just showing a copy of a check is good enough proof...

rdkatwell · **^ Top** #7 10.15.2008

Quote:

Originally Posted by Lilbit

Then he's a sole proprietorship, which means - this is verbatim from a tax guy - you have a business in your mind only. That may sound a bit cold, but it really means that everything is his, including liability. The tax ID number is just another hoop. All income, assets, and expenses will come into play for the state medical insurance in this case.

So what's the point of getting the EIN and ID number for the business and setting up a business account then if it's all the same? I know for one, we done it to keep all business expenses seperate from personal.. that's why we want to pay ourselves a weekly paycheck after he gets paid from Crete, to show our income, and have that as personal spending (for family bills etc.) and then to also leave money in the business account to build up funds if needed for breakdowns, supplies, oil changes, and such..

Roadmedic · **^ Top** #8 10.15.2008

Quote:

Originally Posted by rdkatwell

He is paying for the truck.. it is in his name, he pays all taxes, tags, title, and such... he is leased to the company.

So I am just wondering if companies will accept a "paycheck" from himself to himself like that... and if just showing a copy of a check is good enough proof...

Most likely, as lilbit has stated, he is a sole proprietorship.

At this point, I would just not worry anymore and talk to your accountant about it tomorrow.

It is still early and you can make some changes if needed.

rdkatwell · **^ Top** #9 10.15.2008

yea your right... I am stressing for nothing tonight... He's done all the talking with her and everything.. I think it's my day to sit down and have questions answered.. lol..

1989 Pete · **^ Top** #10 10.15.2008

Quote:

Originally Posted by rdkatwell

Hello everyone,

We are new to the O/O world. Hubby recently went O/O and leased to Crete, He was an employee with them. He's still doing dedicated with them. He is leasing the truck from them. So far so good.. but I have a question.

How do you show your income? For yourself? Not the business? Also, I need to find some type of software where we can print paystubs at least to show our family's income.

He gets statements weekly from Crete that show his gross amount, and then after his truck payments, insurance, fuel, all that stuff comes out, it shows amount owed to operator. The thing is... this is going into a business checking account he opened in his name for the "business".

His plan for us, was to calculate our total expenses needed weekly for bills and such, and then pay himself out of the business account to cover our personal bills (by transferring this into our family's personal checking account).. but how can we show this on paper for tax time and for other companies that need to see proof of income?

For example, since he's went O/O we lost our health insurance, I am currently seeking insurance for our family (we have 2 small children) but in the meantime I am going to apply for state funded insurance for them and they have to have proof of income, and it's based on income. So therefore, I can't take them the statements from Crete, cause that is not necesarrily all personal/family income...some has to be set aside for the business...

any adivse? Thanks. (I think I may be making this more complicated that it needs to be)

Save yourself some time get quicken small bizness I ran into this same problem and a good tax man.you'll do fine

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