- 10 -
and beverage expenses. TLC did not pay any per diem amounts to a
driver-employee whom it leased to a trucking company client who
was not engaged in over-the-road trucking for that client.
At the end of each payroll period,10 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) from which TLC was to
determine the gross wages11 and any per diem amounts to which
each driver-employee was entitled but which was not broken down
into such component parts;12 (2) the total amount of expenses for
10Pursuant 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.
11We 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.
12Pursuant to each exclusive lease agreement, each trucking
company client, and not TLC, selected the method used in calcu-
lating the batch report lump sum amount for each driver-employee
whom TLC leased to such trucking company client. Virtually all
of TLC’s trucking company clients selected a cents-per-mile or a
percentage-of-load-gross-revenue basis as the applicable method.
Neither the batch report nor any other document that a trucking
company client submitted to TLC showed the breakdown of the batch
report lump sum amount between gross wages and any per diem
(continued...)
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Last modified: May 25, 2011