TRUCKING PAYMENTS - How to process

The company holds title to truck. Company makes expense.

IF the employed company ie is the Owner Operator, a human being as a company who holds title to his or her truck working for YOUR company... You pay everything to owner operator. It's HIS responsibility to make payments to the bank.

IF the truck belongs to you, and the employee does NOT hold title... YOU pay YOUR bank the note on the truck. The Employee is most likely a non 1099 and is a W2 employee. You pay that person as what they are to you.

Remember, whose name is on that truck title? Yours? Great. Congratulations, It's YOUR problem to pay that truck payment each month or the bank will be pleased to repossess it.

If you make the mistake of leasing the truck and so on to so and so employee and give him the pleasure of making the payments of that truck title each month, you might as well sign the title to him.

 

Unless YOU are both the O/O AND the company, it doesn't seem like a good situation. The company really has no incentive to pay that truck note on time or at all, and if/when they start missing payments it is the O/O who takes the hit on his credit and potentially gets his truck repoed. By the time he realizes what's going on, he's too far in the hole to do anything about it. Nope. You pay me, and I'll make the note payment.

If, however, that's how you want to run things, it's two separate deals. Company leases the truck from the driver for the amount of the payments plus whatever wear & tear, maintenance, or other considerations the company will be responsible for. Then, they pay the driver to drive it. The driver pay is payroll, which should be w2 at that point, as the O/O is really not an I/C anymore. Sure, his name is on the title, but on paper it is no different than if the company were to lease a truck from penske or any other 3rd party and hire him to drive it.

 

What company reimburses the actual truck owner for truck payments?

 

I was wondering that myself.

And wouldn't be the company owns the truck?