1099-MISC (KLLM) TRUCKER

[Edward]

Have 1099-Misc KLLM trucker - anyone out there have same? Would like to compare notes with you on some of the problems with them. I've had W-2 truckers before bu this is the first 1099 type and there is much more work with these types. KLLM sends a year-end summary that has alot of figures NOT NEEDED for tax prep, as well as garbled wording/numbers, etc. Had to enter all Recap Trip Reports (some 52 or more) into our accounting program in order to come up with all debits and credits properly placed on the P&L. This is the only way to get necessary tax data. The biggest find here was the amounts of reimbursements that KLLM paid T/P, like "washouts, unloading, scale fees and tolls leaving T/P a deduction ONLY for the amounts exceeding the reimbursements. Another thing that complicates matters is the COM-CHECK account (similiar to a checking account) in which the drivers receive their regular pay, advances and pay business as well as personal expenses. Of course the driver never attempts reconciliation with the RECAP TRIP REPORTS and confirming business expenses as opposed to personal items. Sure would like to hear from anyone handling KLLM clients. Thanks.

[joanmcq]

The independent truckers I do all get accounting sheets of the type you described from the company they are hauling for. Be aware that even though some things may be reimbursed, others, like fuel, are subtracted from the gross pay. Drivers usually have a fuel card, and may get a fuel bonus (added to gross pay) but the actual cost of the fuel is subtracted from the com account or from the paycheck. Paying for personal expenses from the com account is like paying personal from your biz account; you have to educate your client on how to keep biz records. The com account gives them a biz account; make sure they use it properly!

[kcjenkins]

Be sure that those 'reimbursements' were not included in the total on the 1099. Many companies call them reimbursements because they are based on tickets turned in, but if the company then shows all the payments to the driver on the 1099, you should still deduct those 'reimbursed' expenses, because they are in the income as well. I've never had a driver for KLLM, but I've seen it reported both ways from different companies.