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KSM Blog | Katz, Sapper & Miller CPA

Highlights from Our Trucking Owners Business Roundtable – Part II

Posted 2:36 PM by

As a follow up to Part I of our Trucking Owners Business Roundtable summary, below are highlights from Troy Hogan’s presentation on the potential for savings by implementing per diem plans. In addition, Mark Flinchum provided an income tax update.

Highlights from Troy Hogan’s presentation:

  • Carriers carve out a portion of the cents per mile they pay drivers as per diem not subject to tax.
  • There can be significant savings to the company and to the drivers in additional take home pay.
  • There is more administrative work required as the per diems have to be tested to make sure they don’t exceed the IRS maximums allowed per day each driver is away from home overnight.
  • Companies should consult their advisor regarding implementation of per diems and how different scenarios (increases or decreases to overall rates per mile paid in combination with a per diem plan) will affect your company’s profitability and drivers’ take home pay.

Highlights from Mark Flinchum’s presentation:

  • It was projected that 2013 dividend rates would return to ordinary income rates and that rates for each tax bracket would increase in 2013. 
  • Currently, the Bush-era rates in effect for 2012 are scheduled to expire Dec. 31, 2012 and are not expected to be extended. 
  • Now may be a good time to consider accelerating income into 2012 to shield that income from higher rates in the future. 
  • Estate/gift exemptions are set to revert to $1 million in 2013 and individuals should consider gifting in 2012 to take advantage of those exemptions before they are potentially reduced. Stay tuned for future updates from KSM on tax law changes as they occur.

Click here to view or download their presentations.

About Us
Katz, Sapper & Miller’s Transportation Services Group is one of the largest and most experienced in the country. We work with more than 100 publicly and privately held carriers throughout North America to keep their business moving in the right direction. Learn more

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