Beech Trucking Company, Inc., Arthur Beech, Tax Matters Person - Page 6




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          allowance (the per diem allowance).3  Short-haul drivers were               
          paid a flat weekly salary, in addition to the 6.5 cents per mile            
          per diem allowance.  The total per diem allowances, so                      
          calculated, were included in the drivers’ paychecks issued by ATS           
          and were listed on the corresponding check stubs under the                  
          category of current deductions and reimbursements, separate from            
          amounts listed as earnings.  The drivers were not required to               
          turn in receipts to receive the per diem allowances or otherwise            
          to account for the manner in which they spent the allowances.               
               Per diem payments to the Beech Trucking drivers totaled                
          $839,169 and $956,261 for 1995 and 1996, respectively.                      
          Expense Reimbursements                                                      
               The drivers’ paychecks included, in addition to the amounts            
          previously described, expense reimbursements.  The Beech Trucking           
          drivers were reimbursed $25 per day for “layovers” when they were           
          detained for at least 24 hours waiting for a load or waiting for            
          a truck to be repaired; otherwise, they were not separately                 
          reimbursed for lodging expenses, overnight parking, or showers.             
          The drivers were reimbursed for such items as tolls, “lumpers”              
          (charges for loading and unloading trucks), scales expenses,                
          truck repairs, and similar items.  The drivers turned in their              


               3 The record is silent as to how this per diem rate of 6.5             
          cents per mile was derived.  Beech Trucking maintained no written           
          plan to govern per diem allowances or other reimbursements.  The            
          record does not indicate whether ATS maintained any such written            
          plan.                                                                       




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