Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 28

                                       - 28 -                                         
          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.                       





Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011