ExpressIFTA Blog

Wednesday, September 25, 2019

How to Know if Your Trucking Company Needs to File 941

Trucking companies need to determine if they must file IRS Form 941 for 2019.
By now, you might have seen a few articles on the web reminding you to file Form 941.

What exactly does that mean?

If you’re a small trucking business owner you might be confused on whether or not you need to file Form 941.

Let’s clear a few things up. 

941 Quarterly Report

IRS Form 941

Form 941 is a quarterly form used to report employment taxes.

All employers in the United States are responsible for withholding federal income tax, social security tax, and Medicare tax from each employee’s salary.

IRS Form 941 is also used to calculate the employer’s portion of Social Security and Medicare tax.

We are currently nearing the third quarter 2019 Form 941 deadline. Employers must file Form 941 by October 31, 2019 to avoid penalties.

To file 941, you’ll need both employer and employee details regarding your trucking company.

Form 941 and Your Trucking Company

Technically, if you’re an owner-operator and have no employees under you, there’s no need to file 941.

However, S-corporations, also known as S-corps, work a little differently.

S-corps are taxed on a pass-through basis, much like a sole proprietorship or partnership.

Because of that, the corporation does not pay taxes on its profits, but rather, those profits pass on to shareholders who are then taxed as part of their personal income.

An S-corp may have no employees in the traditional sense of people working for the business without ownership stake, but for tax purposes, any shareholder who performs a duty for the business may be treated as a shareholder-employee.

The money each shareholder receives in dividends may be treated as income.

This means you'll need to file 941.

The 941 quarterly report also becomes relevant when a driver has an S-Corp and is paying himself a W-2 salary.

No matter what type of business your trucking company is, if you’ve chosen to hire help in the form of independent contractors, you do not need to file 941.

Technically, independent contractors are not your employees. You are only responsible for paying them a gross wage determined by the contract.

The reason for this is that a business withholds and pays taxes on behalf of all employees, and has an obligation to pay employment taxes on wages paid to employees.

In contrast, there are no taxes for a business to withhold or pay independent contractors. They need only pay the compensation amount agreed upon in the contract.

The bottom line is that if you own and operate a business with employees, you’ll need to file IRS Form 941. Every trucking company is required to file 941’s for all of their W-2 paid company drivers.

2019 Form 941

So, do you need to file 941? Let our sister product, TaxBandits, help!

Take your time back with TaxBandits and file your 2019 Form 941 quarterly report online in just a few minutes.

With their interview style e-filing process and built-in automatic error check, you’ll be happy you did.

If you’re still unsure if you need to file 941 for your small trucking business, give the TaxBandits live support team a call at 704-684-4751.

Avoid penalties and stay tax compliant. Get started today! 

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Wednesday, September 18, 2019

How to Start a Trucking Business in 5 Simple Steps

Starting a trucking business is a huge step for drivers. Trucking management software can help.
So, you’re starting a trucking business, but aren’t sure quite where to start.

Don’t sweat it. Starting your own trucking business doesn’t have to be difficult.

Understanding the investment you’ll need to make to run a successful trucking business, and taking advantage of tools that will fast-track your success and growth are critical.

Keep reading to learn more about starting a hauling business and steering it to success.

Starting Your Own Trucking Business

Step One:

The first step in starting a trucking business is to legally establish your trucking business as an LLC. This protects your personal property as a business owner, and offers several other tax and business advantages.

To complete this first step, you’ll need to appoint a registered agent and obtain an EIN (Employer Identification Number) to open a bank account.

A registered agent will serve as the direct point of communication between your trucking business and the secretary of state.

Your EIN is unique to your business and is necessary for opening a business bank account and submitting tax filings each year.

Step Two:

The second step in the process of starting your own trucking business is to obtain business licenses and permits.

Here’s what you’ll need when starting a hauling business:

-  CDL: Drivers of commercial motor vehicles must have a CDL, or Commercial Driver’s License. Contact your state’s licensing agency for more details.
-  USDOT Number: This is used to identify your trucking company when conducting audits, inspections, and investigations.
-  MC Number: You may need to get more than one MC, or Motor Carrier Operating Authority, number depending on your business operations.
-  IRP Credentials and IFTA Decal: If you’re planning to offer services across multiple states, you’ll need IRP (International Registration Plan) credentials and IFTA (International Fuel Tax Agreement) decals for your vehicles.

Be sure to understand exactly what your trucking business needs depending on its services and location.

Step Three:

The next step in our guide to how to start a trucking business is buying or leasing equipment.

Be sure to understand exactly what you need before choosing equipment. What purpose will your trucking business serve? What types of goods will you be transporting?

Do your research first. Consider speaking to other trucking professionals if possible as well.

Step Four:

The next step in starting your own trucking business is choosing insurance.

You’ll need to get business insurance for your company. Contact several agents and weigh your options.

Consider these options before making a decision:

-  Primary liability insurance
-  Cargo insurance
-  Physical damage insurance
-  Passenger accident insurance

Step Five:

The last, and most important, step in starting a trucking business is tracking your income & expenses and staying compliant.

Starting a trucking business isn’t enough to reach success. If you really want to grow your trucking business and become successful, you need to take owner-operator bookkeeping seriously.

Choosing a trucking software for small fleets can help make this easy and save you time.
Consider trucking management software TruckLogics.

Whether you’re an independent owner-operator, leased operator, or fleet manager of any size, TruckLogics trucking management software is designed to simplify managing your trucking business on the road and assist with owner-operator bookkeeping.

From managing dispatches and scheduling maintenance, to tracking income and expenses, you’ll get tons of features that will save you time and effort as you juggle the efforts of starting a trucking business.

Get started today with a FREE 15-day free trial.

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Wednesday, September 11, 2019

The Best Trucking Management Software For Quick Business Growth

Owner-operators and fleet owners can take advantage of trucking management software to boost their trucking business.
Now that the 2290 deadline has passed, it’s time to switch your focus back to your trucking business.

There’s tons of information to keep track of, and plenty of competition.

How can you make sure your trucking business stays on top?

It’s simple. Invest in a trucking company software program.

Choosing the right cloud-based trucking software will set you up for success.

Here’s everything you need to know about finding the best trucking management software for quick business growth.

Trucking Company Software Programs

Owner-Operator (Independent) Truck Drivers

Independent truck drivers, also known as owner-operator truck drivers, need a digital hub where they can manage dispatches, schedule maintenance, generate & send invoices, take care of truck taxes, and more.

One of the biggest responsibilities you face in the trucking business is managing the proper documentation needed to operate in compliance with the law.

Use a trucking management software to ensure that you’ll never miss a tax deadline and pay resulting penalties.Also, keep up with maintenance via in-app reminders and scheduling so that you aren’t blindsided by CVSA inspections

Fleet Owners and Leased Operators

Fleet owners need trucking management software for many of the same reasons that independent truck drivers need it.

Beyond that, however, fleet owners can provide driver login access and utilize multi-user login access, taking some of the work off their plate and distributing responsibilities.

You’ll want to choose a trucking management software program that is catered to both small-fleet managers and larger fleet owners.

This gives you room for growth, while receiving support from a trucking company software program that understands your current needs.

For leased operators, trucking management software offers an easy way to track profits and losses. Some trucking company software programs offer features like auto settlements, profit & loss reports, and maintenance reminders.


TruckLogics is a cloud-based trucking management software program that offers all of these features and more.

Catered to your unique trucking business, no matter the size, TruckLogics was created to grow with you.

Save time and money by staying on top of your trucking business with TruckLogics.

Get started with a free 15-day trial, and try it out!

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Wednesday, September 4, 2019

The Best Way To File After The 2290 Tax Due Date

Truckers who missed the 2290 tax due date hurry to file their heavy use tax and avoid further penalties.
So, it happened. You got caught up in the Labor Day holiday and you missed the 2290 tax due date.

Don’t sweat it.

The good news is that the 2290 tax due date was September 3rd, 2019, so as of this publication date, you’re only a day late.

Let’s take care of your 2290 tax for good so you can move on and leave IRS heavy use tax penalties in the past.

2290 Highway Use Tax

2290 Tax Late Filing Penalties

If you’re filing after the 2290 tax due date, you’ll need to pay a penalty of 4.5% of your total heavy use tax amount. This penalty will increase for up to 5 months.

If you filed your 2290 tax before the 2290 tax due date, but did not pay your 2290 highway use tax amount, you’ll face a penalty of 0.5% of your heavy use tax amount, plus additional interest of 0.54% per month.

Did you know? You may be able to avoid these heavy highway use tax penalties if you can show reasonable cause for late 2290 tax filing to the IRS.

Your best bet is to file your 2290 highway use tax as quickly as possible to reduce fees.

Schedule 1 Form 2290

Besides reducing penalties, one of the most important reasons for filing heavy use tax ASAP is for your Schedule 1 Form 2290.

You’ll need a current copy of your Schedule 1 Form 2290 for truck operation. It’s also required for tag renewals, international travel, and more.

When you pay your heavy highway tax online, you’ll receive a copy of your stamped Schedule 1 Form 2290 as a receipt of payment for your heavy highway tax amount.

Keep it with you while on the road.

Filing 2290 Highway Use Tax Online

The fastest way to file federal heavy vehicle use tax after missing the 2290 tax due date is online with ExpressTruckTax, our sister product and the industry’s leading IRS-authorized e-file provider.

Here’s the information you’ll need to complete your federal heavy vehicle use tax online:

1.  VIN (Vehicle Identification Number)

2.  EIN (Employer’s Identification Number)

3.  Business Name and Address

4.  Gross Taxable Weight

5.  Authorized Signatory Details

Once you’ve got that, you’ll simply create a free ExpressTruckTax account, enter your heavy use tax information, undergo a free instant error check, transmit your heavy highway use tax to the IRS, and receive your Schedule 1 Form 2290 within minutes.

Get started now filing and paying your heavy highway tax now. 

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