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Trucking in the News
Diesel prices
remain at all time high levels even though the official retail average
dropped 0.9 cent. They are still hovering around $4.00 per
gallon. This is not good news for our industry, especially the
independent owner operators. We are now all very familiar with
their plight. Carriers aren't able to adjust their fuel charges fast
enough with these rapid rises and the wages the independents earn are
taking a big hit.
We try to keep
a positive attitude in tough economic times but we also have to be
realistic. We know that now, more than ever, we have to try to
get the best possible prices, and the best service for these truckers.
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How Do We
Save on Diesel Costs?
The obvious answer is to use less diesel.
Carriers are going to be much more careful about paying out fuel
surcharges for trucks that are running without a load and for fuel used
to power trailer refrigeration units. They are also looking at
trucks idling during pickup and delivery. The current weaker
freight market has made it much more difficult to make up for the
excessive rises in fuel. Additionally, most surcharge
calculations are based "as the crow flies" instead of the
actual miles driver. This means that surcharges may only cover
75% of the actual fuel used. Needless to say, calculations vary
by carrier and have never been as carefully scrutinized as they
are now.
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What People are Paid 
Parade Magazine's article "What
People Earn" in the April 13 edition of the San Diego Union
Tribune, outlined what people in the United States are paid. Some
statistics from that article are as follows:
- Real Estate Broker in Alaska
$173,300
- Comedian in Atlanta $10,000,000
- Hospital Clown in New York $28,000
- Pharmacy Tech in Florida $23,000
- Spanish Teacher in Massachusetts
$38,000
- Hedge Fund Manager in New York $3.5
billion!!!
- Tow Truck Driver in Oregon $42,000
- Car Sales Manager in Maryland
$205,000.00
- Miley Cirus, Singer/Actress in
California $18,200,000
- Deputy Sheriff in Louisiana $35,000
Things seem a little out of whack
here, don't they?
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The
IRS & independent Contractors
The IRS takes a long hard look at independent contractors. The
common use of them in the industry may result in increased IRS exams from
both the State and Federal governments. Motor carriers who utilize
the services of owner operations are well advised to review the
procedures for independent contractors otherwise exempt expense
reimbursements can be reclassified as wages subject to employment taxes
and the associated penalties for not paying them.
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