DRIVING THE NUMBERS:
A look at the trucking industry’s financial landscape
Wire Transfer Fraud: Underrated Risk
Wire transfers are a less common type of transaction for most U.S. businesses, but the risk of wire transfer fraud is actually greater.
Because wire transfers happen faster — the money moves to the other bank in about one hour — fraudulent wire transfers can be
especially difficult to recover.
“Talk with your bank about setting up a wire transfer agreement,” says Kirby. “This will give you a set of controls and procedures
for initiating wire transfers so that your bank will not process a suspicious wire transfer. For example, if your company president’s
email account gets hacked, a fraudster could use that email address to request a fraudulent wire transfer. Many banks are hesitant
to send wire transfers that are requested via phone or email; you can specify how wire transfers will be initiated in the agreement.”
The bottom line? Even though deposit account fraud is becoming more prevalent, there are simple controls and procedures
that your bank can help set up to protect your company. Talk to your bank. You have options to help prevent these fraudulent
attacks against your company’s bank accounts.
4
Implications of Federal Tax
Reform: How a Per Diem
Program Can Save Both
Drivers and Carriers Money
Randy Hooper, Partner, Transportation Services Group,
Katz, Sapper & Miller
The Tax Reform and Jobs Act (TCJA) was the most
comprehensive overhaul of the tax code in generation, if
not ever. We are just weeks away from the first tax filing
deadline for returns that are fully impacted by these law
changes. One change that could drastically impact truck
drivers is the inability to deduct unreimbursed business
expenses. As a result of this adjustment, many carriers have
implemented per diem programs as a way to get tax free
dollars to drivers. Ozark Motor Lines, based in Memphis,
TN, was driven by the TCJA to adopt a per diem plan in
2018. Ozark CFO, Jason Higginbotham, said, “we were
motived to implement the program so that we could stay
competitive from a recruiting and retention standpoint.”
Conversely, companies that have not instituted per diem
programs might have disappointed drivers as the tax filing
deadline approaches, and drivers realize that this deduction
is a thing of the past.
What Changed?
Prior to TCJA, an over the road (OTR) driver could deduct travel
expenses as unreimbursed business expenses, subject to
an AGI limitation. For a driver that was away from home for a
substantial amount of the year, this deduction could have been
well over $15,000, having a material impact on a driver’s annual
tax liability.
Despite the loss of this deduction, between decreased tax
rates, the increased standard deduction, and the increased
child tax credit, most drivers will likely see a decrease in taxes
this year. However, now that there is no longer a tax deduction
for unreimbursed business expenses, it makes more sense
than ever to consider implementing a per diem program.
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