Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 11

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          gas, tolls, repairs, and other road expenses for which such                 
          trucking company client (a) made cash advances (advances)13                 
          and/or (b) was obligated to make reimbursements to such driver-             
          employee (reimbursable expenses); (3) any miscellaneous credits             
          or deductions (e.g., for the costs of health insurance that such            
          trucking company client agreed to pay); (4) any vacation days               
          that such trucking company client permitted such driver-employee            
          to take;14 and (5) the number of days such driver-employee was              
          away from home.                                                             
               TLC determined what portion of the batch report lump sum               
          amount constituted gross wages and what portion, if any, consti-            
          tuted per diem amounts to which each driver-employee was enti-              
          tled.15  In order to make that determination, TLC applied to each           
          batch report lump sum amount with respect to each driver-employee           
          a percentage (per diem percentage).  In most cases, the per diem            
          percentage was 34 percent; in some cases, the per diem percentage           

               12(...continued)                                                       
          amounts.                                                                    
               13Except for such advances, no trucking company client made            
          any payments to a driver-employee.                                          
               14If the batch report indicated that the trucking company              
          client permitted a driver-employee whom TLC leased to it to take            
          any vacation days, TLC paid no per diem amounts to such driver-             
          employee for any such days.                                                 
               15The exclusive lease agreement was silent as to (1) any per           
          diem amounts that TLC was to pay to a driver-employee to cover              
          such driver-employee’s food and beverage expenses while traveling           
          away from home and (2) the limitation imposed by sec. 274(n)(1).            





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Last modified: May 25, 2011