Beech Trucking Company, Inc., Arthur Beech, Tax Matters Person - Page 5




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               ATS employees hired the drivers and provided them                      
          orientation.  Drivers who were hired to drive for Beech Trucking            
          signed employment agreements, wherein they agreed they would                
          drive equipment owned by Beech Trucking but would be the                    
          employees of ATS and would be paid by ATS.  Petitioner had final            
          authority to fire drivers who were hired to drive for Beech                 
          Trucking.                                                                   
               ATS maintained all payroll records for the Beech Trucking              
          drivers and issued their payroll checks, as well as their Forms             
          W-2, Wage and Tax Statement.  ATS paid workers’ compensation                
          insurance for the drivers, who were also eligible to participate            
          in a section 401(k) plan maintained by ATS.                                 
               Each week, ATS would bill Beech Trucking for all the                   
          drivers’ expenses that ATS paid out, and Beech Trucking would               
          write a check to ATS for the total payroll (including expense               
          reimbursements), in addition to a service fee of undisclosed                
          amount.                                                                     
          Drivers’ Compensation and Per Diem Payments                                 
               On long hauls, Beech Trucking drivers were paid at a                   
          specified rate for each mile dispatched, as determined by ATS               
          employees using the Rand McNally Mileage Maker, a guide                     
          indicating mileage between selected points.  During the years at            
          issue, the drivers were paid between 24 and 26 cents per mile.              
          Of this amount, 6.5 cents was designated as a per diem travel               






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Last modified: May 25, 2011