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report lump sum amount to which each driver-employee was entitled
a percentage (per diem percentage). In most cases, the per diem
percentage was 34 percent; in some cases, the per diem percentage
ranged from zero to 33 percent.
Beginning in late calendar year 1993, TLC requested that for
each payroll period each trucking company client provide it on a
“Leased Driver Worksheet” certain information that the Internal
Revenue Service (IRS) required in order to substantiate each
driver-employee’s per diem amounts.21 The requested information
for each payroll period included, inter alia, the number of days
such driver-employee traveled away from home. Some of TLC’s
trucking company clients did not provide TLC with the information
that TLC requested.22
Upon receipt of a batch report, TLC inputted the information
contained in that batch report into its computer system and,
based on that information and other information in its computer
system (e.g., the per diem percentage, applicable employment tax
rates, Federal and State income tax withholding), computed with
21As discussed above, TLC’s promotional materials repre-
sented to each trucking company client that TLC was responsible
for substantiating the per diem amounts that TLC paid to a
driver-employee and for ensuring the appropriateness of such per
diem amounts for Federal income tax purposes.
22When a trucking company client did not provide TLC with
the information that it requested, TLC used the number of days
that each driver-employee was away from home that was shown in
the batch report in order to substantiate any per diem amounts
that TLC determined and paid to such driver-employee.
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