company truck

Discussion in 'Irrigation' started by greenmonster304, Mar 10, 2013.

  1. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    If its 50miles from the shop and 35 mile from their house then they are not taxed at all for it. It's a win win, we save on wear and tear, fuel, etc and the tech saves what it would have cost him to drive a personal vehicle all the way to the shop, plus the get to leave their house a little later since they don't have to drive all the way to the shop to get the truck first. Where not charging them or deducting from their check for the actual cost the incur driving the truck. They are just paying taxes on it.

    So quarterly we add up depreciation, total fuel, scheduled maintenance, etc for each truck/driver. We then compare the person vs business use mile and they are taxed on their portion of he use. So say at the end of the quarter that number adds up to $5,000, and 25% of the miles were personal. Then $1,250 is reported as the benefit, use 30% tax bracket for easy numbers and the tech has to pay $375 in taxes. That $375 is much less than what the tech would have spent on fuel to get to and from work in his own vehicle. This also allows us to expense the cost they incur as a legitimate business expense. With out taxing the driver you can not write off their personal use, the IRS needs to get the money from someone.

    The IRS also says we can not include non scheduled repairs in the portion they pay. So if we spend 3k on a major repair then we can not include a portion of that as the benefit. Also the IRS allows a flat $/mile rate instead of adding depreciation, fuel, maintenance etc such as how you can do to write off business use of the vehicles. But doing it by actual costs is much more beneficial than using the flat rate.
     
  2. RhettMan

    RhettMan LawnSite Silver Member
    from Texas
    Posts: 2,114

    i agree on these points, I would probably be a bit harsher, but it would probably be sufficient to simply agree.

    wal-mart doesnt have an employee bus.

    get to steppin' ! :walking:
     
  3. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    theft is always q concern. Obviously I would much rather the trucks all left in the pen at the shop from that stand point. I actually had my service truck that I drive as a daily broken into a couple months ago when I was at dinner. Fortunately it was january so there were no irrigation parts or tools n the truck, just some lighting maintenance parts that were at the front of the bed, and they broke in through the rear end.

    Also a key thing is that they sign an insurance release my carrier (Commerce) provided, stating that any accidents during personal use go on their personal insurance carrier and not on my policy. Same as if you borrow a buddys car and cause an accident in it. Of course the company is still subject to lawsuit same as it would be if the accident happened during business use.
     
  4. bcg

    bcg LawnSite Bronze Member
    from Tx
    Posts: 1,835

    In my case, there are almost never any laborers needed, we don't do installs and use remotes so 99% of the time, 1 guy is all it takes. I was really pretty lax about personal use unless it became really abusive but we use lettered E250 Cargo vans so they really aren't all that great for anything but work. The GPS isn't so much to spy on the employee as it is to keep track of the van. I put it in vehicles even when they aren't going home with someone at night. They're my assets and I want to know where they are. It also give us a backup to prove to a customer we were there when we said we were on the few jobs that are billed hourly and helps with dispatching if something comes in during the day.

    As far as on-call, we don't do after hours or emergency service. The phones turn off at 5 and if it wasn't scheduled by then, it'll wait until the following business day. I've never paid my guys hourly anyway, it was always a percentage of their gross billings, so whether they take the truck home or not, fueling, re-stocking, cleaning, etc. was on "their time."

    I agree about reporting it as a payed benefit though, I don't think I'd do it unless I was forced to. There are some advantages to me with the employee taking the vehicle home as well so I think it's all a wash.

     
  5. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,054

    I guess i have lived too long off leash, you both are prolly more right than i feel that i am.

    :waving:
    Posted via Mobile Device
     
  6. bcg

    bcg LawnSite Bronze Member
    from Tx
    Posts: 1,835

    Oh, I understand that. I'm the same way, I don't want a GPS in my van either but I'm the one paying for it so I can make that decision.
     
  7. RhettMan

    RhettMan LawnSite Silver Member
    from Texas
    Posts: 2,114

    this reminds me of a situation when.....

    I hired a guy at his requested 15 hour. but soon ...I.... felt he needed more so i said from now on its 30 an hour

    unfortunately, i was too naive to realize that i couldn't afford 30 hr, i only "thought" that i could.

    later, but soon, I realized that I would have to cut his pay in order for the BUSINESS to remain in the black, until we got more work anyway...

    but upon explaining, he said "no way, Im worth 30 and hour, so its 30 an hour, or i quit"

    Looking back, I could not legitimately be mad at him, because he is mere mortal, a simple human.

    .... I .... was the dumby, and the one at fault.
    ___
    The Moral is:
    always remember, some man, somewhere, who is a hard-worker with imperfections, is worried his kids wont be able to eat. and he doesn't care if he has to ride 10 miles in the rain on a bicycle to get to where-ever he might find an opportunity.
     
  8. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,054

    Sorry bernie i thought i was quoting Rhett
     
  9. RhettMan

    RhettMan LawnSite Silver Member
    from Texas
    Posts: 2,114

    not without royalty's! :)


    BTW that was all theoretical, i dont have employee's, or write offs

    "for an hour of each, but having only one or the other; cutting coupons cost more than work"

    that quote would be an expensive royalty :)

    ______

    ultimately , yall are ALL CORRECT!

    Good night, time to rest up, excited tomorrow is monday!!!!
    Time to get my diggggg on' !!
    WHOOOO HOOOOO!!!!

    * delete this if it makes you feel better ;) *
     
  10. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,054

    Somewhere there are a few elderly gentlemen that stare out the window wondering who used all of their fun up......

    Why'd you do it Rhett?
    Posted via Mobile Device
     

Share This Page