Transam Trucking - Olathe, KS
LEASE PROGRAM EXPOSED AND EXPLAINED.
Ok this information is based on facts and evidence which can be provided. I started with TransAm trucking in September 2009 as a lease driver. I reviewed the contract and also what I was told in Orientation.
As a new lease driver you will 99% fail.
TransAm violates Section 503 of 1978 Revenue Act in respects to a Independant Contractor.
1) Is the worker required to comply with instructions about when, where and how the work is done?
2) Is the worker provided training that would enable him/her to perform a job in a particular method or manner?
3) Are the services provided by the worker an integral part of the business' operation?
4) Does the worker perform services exclusively for the company rather than working for a number of companies at the same time?
Thats just to name a few, the rules state (The answer to any one of the questions may mean the worker is an employee.)
As a lease driver with them they say you are a Independant Contractor, legally you are not. First off they have full control of what you do. If you violate hours, they shut you down, if you yell at them they have you come to the terminal for a meeting. You do not have control. You do what they say.
Now, you will pay for everything, i mean everything. Below I will list the actual costs. You get reimbursed for lumpers, but you pay for the comchek fees.
Lease Fees :
Truck Lease 575.00
Occup. Accident 22.85
Buy Down Ins 16.16
Federal Highway Use Tax 10.58
Satellite Charge 15.00
Fuel Optimizer 3.00
TAL Performance Bond 25.00
TA Lease 25.00
Ok we are at $871.99 So far. I am not done yet.
You are paid .84 per mile. So you need 1038 Miles to pay for the truck.
Based on 1038 Miles
.03 per mile x 1038 = 31.14 Lease Miles, you pay for all miles
.04 per mile x 1038 = 41.52 Maintainance
.01 per mile x 1038 = 10.38 Fuel Taxes
A total of $ 955.03 and you havent even put in fuel, lets do that now.
1038 Miles at 6.5 mpg average and fuel at 2.55 per gal.
159 Gals # 2.55 = 405.45
Ok total is now $ 1360.48
that is equal to 1619.6 Miles
And you havent even got a load yet. You will average from 1700 - 2500, they say 3000. LOL yea in your dreams
So you drive a load 1619 miles as an example , and you make 0.00
If you get maybe another 800 miles. thats 672.00 not including charges of fuel. Lets show that
800 Miles # 6.5 miles per gal , 2.55 per gal. = 313.85
.03 per mile = 24.00
.04 per mile = 32.00
.01 per mile = 8.00
Expenses = 377.85
You get 294.15 for 2419 Miles Total
Now the say practical miles they pay, thats 500% false. they pay shortest miles minus 40-100 miles. Kinda a slap.
I drove a trip used every shortcut on pcmiler, and route possible. Total miles 291, paid for 203.
by the way you are responsible for all the taxes on the above by the way.
They get a tax credit from the IRS to hire people. so they want as many people as they can. If you quit, 20 people are coming next week.
*********I have found an attoney that is building a class action lawsuit
please send me a message if you want to be included.
DONT FALL VICTIM CAUSE YOU NEED A JOB. You will make nothing in return.
Copy of Independant Contractor Agreement http://s1004.photobucket.com/albums/af165/2insanepics/
Transam trucking - lease program
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Burn. I don't have those issues where I lease out of, and to tell you the truth, I'd not own a truck in these days. Leasing makes better sense for me taxwise. But I make money. Week after week. Sorry for your bad deal.
I have also had the displeasure of leaseing with trans am, and am pleased to know that I am not the only one that would like something done about the way they rip us off. I would be pleased to join in on the class action suite against them if I can. Please inform me of how to do so.
Just to add for tax purposes on a lease. A lease is determined as you being the registered Lessee. As for Transam.
Lessor is Transam Trucking
Lessee is Transam Trucking
you are sub-leasing the truck from them. Under IRS Audits that is not a tax deductible expense. You can take it sure, get audited BAM. Subleases are not tax deductable.
As for fuel, The fuel card is in Transam Truckings name, second they pay the IFTA taxes based on a fleet average. You pay .01 a mile to that.
A true Lease would be registered with the Department of Motor Vehicles and your fuel, ifta, road tax would be paid in your name and your responsibility. Therefore according to my accountant (ex-irs auditor) those expenses are not legally deductable. As for tax purposes self-employment tax is due on the amounts you receive from transam, including they show all lumpers and tolls as reimbursments. Otherwords you need approval, they pay it and then show it as reimbusments. Another tax.
Now as for taxes from transam. They get out of paying the Government FUTA, SS, MEDICARE. The get out of hundreds of thousands of tax dollars. Who pays you. except fro FUTA, the govenment just gets burnt. The get to deduct the truck, fuel, taxes and everything off you. Welcome to a good tax evasion scam. Look at the tax laws and how they write it up.
This is from the Transam Independant Contractor Agreement word for word:
1. Equipment and Other Property.
(h) Compliance with Federal Law. In accordance with and only to the extent required by the ICC Termination Act of 1995 and corresponding DOT regulations, Carrier shall have exclusive possession, control and use of the equipment and shall assume complete responsibility for the operation of the equipment for the duration of the lease created by this agreement, subject to the provisions of this Agreement. Further, Carrier may be considered the owner of the Equipment for the purpose of subleasing it under the applicable DOT regulations to other authorized carriers during the term herof.
Hmmm EXCLUSIVE POSSESSION, CONTROL.
That statement based on its definition means you are not a true Independant Contractor. They control YOU.
I am working on getting all the documents scanned and uploaded to the internet. I am posting the contracts, handbook and other materials to help you see the truth. Its time we get together and shutdown these companies or make them treat you fairly.
I will post the links as soon as they are scanned. Its a ton of crap.
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