Analysts Say Meal Stipends Serve Truckers Better Than Tax Benefits

Long-haul drivers who work for less in return for being reimbursed for their meals are better off financially than drivers who get full compensation and itemize their meal expenses for tax purposes, said David Goodson, editor of the National Survey of Driver Wages.

	More Coverage
	Panel: Cheaper Oil, Interest Rate Drop May Help Trucking in 2001 Analyst: Truckload to Beat S&P 500 in 2001 Audio clips from this year's forum

Less than 30% of companies in his fleet survey offer the benefit, which could add up to between $3,000 and $4,000 a year for a driver, he said Dec. 4 at Transport Topics’ 12th annual Management Outlook Forum.

“The truckload carriers have a heck of a time selling that to their drivers,” said Goodson. “Most of [the drivers] want it in their pay.”

Goodson said truckers could be turning down a carrier’s offer because they, like most Americans, find tax explanations confusing. Money up front to them might seem to make more sense than money at the end of the year, he said.

But, there are distinct advantages for taking the paid meals, said Brian Heckert, president of Financial Security Corp. in Nashville, Ill., in an interview with Transport Topics following the forum.

Drivers will likely end up in a lower tax bracket at year-end if they get less compensation, while owing no taxes on meals reimbursements paid them by their company, he said.

“That’s money they don’t have to report as income, plus pay any tax on it,” he said.

For the full story, see the Dec. 11 print edition of Transport Topics. Subscribe today.