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unemployment claims that such driver-employee filed.14
Each of TLC’s driver-employees who was engaged in over-the-
road trucking paid for food and beverage expenses while traveling
away from home. TLC generally made payments of per diem amounts
to each such driver-employee that TLC intended to cover such food
and beverage expenses. TLC did not pay any per diem amounts to a
driver-employee whom it leased to a trucking company client that
was a local carrier.
At the end of each payroll period,15 each trucking company
client mailed or sent by facsimile to TLC a batch control form
(batch report) with respect to such period. For each payroll
period, the batch report that each trucking company client
submitted to TLC showed for each driver-employee whom TLC leased
to such trucking company client, inter alia, (1) a lump sum
amount (batch report lump sum amount) which was equal to the
total of the gross wages16 and any per diem amounts to which each
14Because of the large number of driver-employees and the
low rate of successful claims, TLC usually paid the minimum rate
imposed by the applicable State Unemployment Tax Act (SUTA).
15Pursuant to the exclusive lease agreement, each trucking
company client had the right to select the payroll period for all
driver-employees whom TLC leased to such trucking company client.
16We shall refer to the gross amount of wages to which a
driver-employee was entitled, prior to any reduction for such
driver-employee’s share of Federal and State employment taxes,
Federal and State income taxes withheld, and payroll deductions
for employee benefits (e.g., health insurance, a sec. 401(k)
plan, or a sec. 125 flexible benefit plan), as gross wages.
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