truck times

issue 2, 2013

In This Issue:

The Affordable Care Act and the 3.8% Medicare Tax
In December 2012, the Internal Revenue Service (IRS) issued proposed regulations that expand upon the Patient Protection and Affordable Care Act of 2010 (Affordable Care Act). One of the provisions of the Affordable Care Act is Code Section 1411, Unearned Income Medicare Contribution Tax. The new law and proposed regulations may affect the transportation industry, as certain individuals may have an additional tax liability, depending on their income.
By Douglas Rubenstein, CPA

Advances to Owner-Operators and Company Drivers
With hundreds of drivers across the country, transportation companies use various methods to pay for fuel and other company expenses. Carriers typically pay these expenses through a secure credit card, such as a Comdata Card, or by issuing an authorized check number, which a driver can cash at most major truck stops. With the cost of operating a truck constantly rising, it is not uncommon for carriers to advance money to owner-operators to help cover these expenses, or provide payroll advances to their own company drivers. By Matt Gard, CPA

What is Your Trucking Company Worth?
Valuation is always a topic of great interest to transportation company owners. Companies today have made the difficult decisions necessary to operate successfully through the Great Recession. While demand has increased in recent years, challenges persist due to regulation, driver demand and fluctuating fuel costs. How has the company’s value been impacted by the challenges faced during the Great Recession? And most importantly to business owners: how to build a higher value for my business? By Andrew Manchir, ASA, CMA

How to Navigate a Successful Turnaround
Although the trucking industry has seemingly recovered over the past couple of years, some trucking companies continue to struggle. The struggles can result from industry specific challenges such as volatile fuel prices, the driver shortage, increased cost of equipment and regulations and/or company specific challenges such as aging equipment, poor management and lack of processes/procedures. A deteriorating operating ratio and failed financial covenants are just a couple of signs that a company may be headed down the path to becoming a turnaround candidate. By Jason Miller, CPA


Katz, Sapper & Miller’s Truck Times is a bi-annual newsletter that focuses on the financial side of the transportation industry.