Running with JCT, Part Deux

This is one area that I'm completely in the dark on, taxes. I'm used to running as a company driver and getting back all my federal and state taxes, usually a return of over $5000, a nice benefit thanks to generous per diem rules. How does this apply to LP operators? Am I looking at paying taxes instead of getting a return at the end of the year? I know there are quarterly taxes, but do I get some of that back with per diem?

 

I don't know why everyone's jumping on damonarnold, he's been nothing but helpful. This is a thread about JCT and he's with JCT right now, so any criticisms he has of it are welcome advice to those considering JCT. I sure wish I had someone like him to listen to before I signed up with C.R. England when I first became a driver, I might have not wasted so much time with no money to show for it. As far as I'm concerned, a thread on JCT should contain the good, the bad, and the ugly and I think it's unreasonable to jump down somebody's throat who's offering valuable insight into his experiences with the company.

I have orientation scheduled for 5/11 and part of me still wonders if I'm making a mistake.

 

So I'm in a 2014 Cascadia 10 speed manual. What is the sweet spot in these for fuel economy? How good should I be seeing? I'm getting 7.5 on the omnitracks but that's at governed speed. (68) I've been holding that mpg through the northeast and now down towards Florida.

Also, it seems like every load I'm getting I'm having to rush on, and punch it to make delivery, and its not a time management issue. How do you other drivers manage to keep it slow and bump up that mpg?

 

Idahotrkr...a good rule of thumb is to set 25% of your pay aside everyweek for taxes..as l/o or o/o, you have to pay your own taxes,jct will not deduct any of that..

 

Its a good place to gain experience and it's a walk away lease, it really just depends on what your expectations are and future goals.
I never said I wasn't successful at JCT, I'm doing well, but I have other business goals that I can't achieve at JCT.

 

That's a hell of a lot. As I said, I'm used to having zero liability in taxes and getting back everything I paid as a company driver. I understand that a LO pays self employment taxes and other taxes normally covered by the employer. What I'm trying to get an idea of is what LO's end up paying with per diem and all other deductions available, an idea of what experienced LO's have been paying. I'm guessing it isn't 25% because it wouldn't be worth it for most when compared to the benefits of just driving company and getting a sweet tax refund every year.

 

12.4% for social security and 2.9% for Medicare, then go get a copy of the IRS circular E, find the weekly pay schedule, then how many you claim on taxes, and match up your gross pay and set aside that amount. End of the year get your total days away from home so you get your per diem total that you can deduct from your gross. Or do it weekly before you start your SS, Medicare, circular E math. Per diem is 80% of 59 dollars a day if I recall correctly.

Your "refund" will be that you hopefully don't have to send uncle Sam all the money you set aside, unless you have lots of deductions like children and blah blah.

Source: watching my dad pay his business taxes each year.

 

58
The sweet spot on the 2014 is between 1200 - 1300 RPM. Anything higher is a waste of fuel. That puts your speed at 55 - 58 MPH. As far as getting there on time? I dunno, I drive my speed and always have plenty of time for OTD. If for some reason I don't, that's what the Mac 1 is for. I don't go faster for OTD, period. I'm not a company driver and JCT never dictates how fast I should have to drive.

 

Per Diem can be computed the same as it is for a company driver in order to reduce your taxable income. Only difference is it will reduce the amount you have to pay in instead of increasing your return. Its just another deduction.

 

Sat in that sweet spot about 1250 RPMs, went from GA to Florida, to Virginia sitting at 8.2 now, highest was 9.1 and have been at about 76K the entire trip about 1000 miles, headed back down to Pompano Beach FL tomorrow.