12 Week Numbers on New Lease

Two different tax years (2017 and 2018) and the tax law for 2018 for this is substantially different than in 2017 ala Trump.

 

I think the OP is OTR which in all likely hood gets much more miles than the XPO local so it is kind of and apples to oranges thing.

 

They do plenty out of Seagirt.

 

You're missing one major piece of this, if he was a company driver and made$0.75 a mile ALL of those would be deducted from his pay anyways. The only thing he would get with a 401(k) plan is maybe a company match of up to 3%. Sick pay, vacation pay, holiday pay are things that are accrued and if you don't have enough accrued you either go in the whole with a company or you don't get paid. This goes back to slave labor in the fact that a driver has to first work x number of hours or x number of miles before they can get vacation or sick pay. Health insurance isn't something most companies pay 100%, usually the driver has to contribute a portion of it out of his pay. Most corporate provided health plans are high deductible plans to help keep costs down.

So again, where is this any different than a company driver other then he has a truck he's leasing and is making more than most company drivers before healthcare and retirement?

Is that 100% paid benefits or are they deducted from the driver's gross each week?

Those are two contradicting entity types. A single member LLC can elect to be taxed as a sole proprietor. If you incorporate that is not an option.

Um abacus is the worst CPA firm ever. They don't know jack when it comes to taxes at all. Find a REAL CPA!

You might want to check that attitude. With this new tax law for 2018, per diem is not available. This might be fixed before taxes need to be filed so who knows.

You think just about anyone is if they argue their point so strongly, lol

 

Vacation and sick pay are an earned benefit not a free benefit. You lost me trying to compare this with slavery,

 

Yes, that's what accrued means. As for slavery, everyone wants to throw out how leasing you only make slave wages and you should not lease at all but just become company driver.

 

I think he's failed in that particular department though.

 

$52,000 pay on 100k miles
$0.52 a mile gross pay.
$0.07 employer s.s. & medicaire contribution, w. comp, ue ins
$0.03 matching 401k
$0.07 decent health & dental ins
$0.02 vacation pay & sick pay

That's $0.69 a mile right there...

I'm sure I've left out a thing or two. If the op is "banking" $0.75 a mile, that's pretty darn close to what a good company guy can earn with benefits.

I'll reiterate it again, that is NOT worth taking all the risks and assuming ALL the liability.

I've been a lease op and have had my own authority for 2.5 years now and am fully aware of how things can come up which can eat up the margins quickly in one fell swoop.

 

After you figure in benefits, vacation, holiday pay, etcetera, you're over .75 a mile.