There are many differences between W-2 and 1099 truck drivers. In this article, we'll talk about the main differences between the two, specifically how they file and pay their taxes . The most significant difference between W-2 and 1099 drivers, is that a W-2 worker is classified as an employee and has taxes withheld from their paycheck prior to the employee receiving their pay. The employer of the W-2 employee is responsible for remitting the various taxes withheld to the appropriate governmental agencies. A 1099 worker is classified as a contractor, and a 1099 worker does not have taxes withheld from their paycheck. A 1099 contractor would receive the full gross amount as pay. The company who has hired the 1099 worker has no responsibility to remit taxes. The tax remittance or payment of tax is the full responsibility of the individual 1099 worker. The Form W-2 is what a company issues to an employee at the end of the year and the Form 1099 is what a company issues to a contractor at the end of the year. Both of these forms indicate the amount of money earned by the worker within the given year but the W-2 will include information about how much in taxes was withheld while the 1099 reports only earnings. Let’s dive into some of the tax differences between these two types of workers based on the tax form they receive. Are you a self-employed truck driver that needs help with your taxes, accounting, or bookkeeping? Click here! W-2 In the world of trucking, company drivers are considered W-2 employees. They are the typical, hourly or salaried workers that are hired to perform a specific role. In terms of truck driving, they are given a schedule, a consistent paycheck, benefits provided by the company, a company truck, etc. Every tax season, employers provide a Form W-2 to the IRS and the employee. On the Form W-2, the employer will report the annual compensation paid to their employee and the taxes withheld from that compensation for federal income taxes, state income tax (if applicable), and taxes remitted for Social Security and Medicare. When it comes to paying taxes as a W-2 employee, the employer has already withheld federal and state income tax, Social Security tax, and Medicare tax from employees when they pay them. All of these amounts are included on the W-2 form that is received from the employer which is then used to file taxes. Employers must mail Form W-2 to their employees by January 31st of each calendar year. Filing taxes as a W-2 employee is much simpler compared to filing taxes as a 1099 worker. The filing of an income tax return is the process in which a taxpayer would determine if they had their employer withhold too much tax throughout the year. In the event that tax was over withheld a tax refund would be issued to the W2 employee by the IRS and state (if applicable). If the employee did not have their employer withhold enough in taxes, then the employee would be required to pay the IRS the amount of taxes that are still due. In terms of deductions, specifically for truck drivers, W-2 company drivers can no longer deduct the Per Diem deduction . Additionally, a majority of W-2 drivers end up taking the Standard Deduction unless they have a lot of medical expenses or if they dealt with a significant loss due to a natural disaster. The Standard Deduction is an IRS-allowed deduction for each taxpayer and/or spouse used to reduce taxable income. There is nothing that a taxpayer must do to receive the Standard Deduction; it is an automatic allowance to each taxpayer when filing their tax return. 1099 1099 workers may not have a single employer and could have been contracted on with multiple customers that they worked for throughout the year. This is because they own their business and contract their services. They’re also responsible for reporting their income to the IRS themselves, paying Self-Employment Taxes (which cover Social Security and Medicare), and paying income taxes. The companies that hire 1099 contractors DO NOT pay or remit taxes on behalf of that 1099 contractor. The most common types of 1099 truck drivers are: Independent contractors who source their own loads, use their own equipment, and run on their own schedule, or Those who opt for longer-term more rigid work arrangements with a specific carrier A Form 1099 is a document used by companies to report payments made to a contractor for work performed during the prior year. Companies that pay contractors $600 or more during a year must issue the contractor a Form 1099-NEC by January 31st of the following calendar year. The company that issues a contractor a 1099-NEC is also responsible for filing the 1099-NEC with the IRS by January 31st of the following year. Contractors pay a self-employment tax because the companies that they work with don’t withhold or remit Social Security or Medicare taxes for them. The self-employment tax rate is 15.3%. It’s a little more complicated than that, as only income up to $174,900 is subject to Social Security tax whereas all your income is subject to Medicare taxes. 1099 contractors have a lot more freedom than their W-2 peers when it comes to tax payments and the deductions they can take. It is highly recommended that 1099 contractors set aside 20-25% of their net income to make quarterly estimated tax payments. The IRS does require self-employed individuals to pay taxes quarterly. If this is not adhered to, there is an IRS penalty when filing the tax return on top of a much higher one-time tax payment. Unlike W-2 employees, 1099 workers are still eligible to deduct Per Diem from their taxes. Additionally, thanks to the Tax Cuts and Jobs Act, they are allowed significant additional tax deductions from the Qualified Business Income Deduction or QBI. QBI is a 20% pass-through deduction calculated using the lesser of your self-employment earnings or your overall taxable income. 1099 workers are also able to deduct health insurance premiums and business expenses on top of their Standard Deduction. Even though self-employed individuals are subject to a more complicated tax filing process, they’re eligible for more deductions as well. Big Takeaways For 1099 workers, taxes are not automatically taken out of their paycheck by whoever they are working for. 1099 workers should make sure they’re setting aside 25% of their income to make their tax payments quarterly 1099 workers should take advantage of all available deductions they’re eligible for. If you’re a new 1099 worker, or still don’t have a very good grasp on how to manage your taxes, let ATBS know and we can help you out!

When I started my career as an independent owner-operator under my own authority, I spent a lot of time putting my business plan together. One of the sources I used was the Small Business Administration. Utilizing the SBA turned out to be a great asset as I charted the course for my new business. U.J. Cozart was my aide at the SBA. He put me through the paces and helped me put together a business plan, a backup plan to the business plan, and a backup to the backup plan to the business plan. Having a backup plan became very handy as I embarked on my new business venture. A few times I had to dip into that plan b. I will never forget one of the last meetings that I had with U.J. Cozart. He had run my plan past peers in the trucking industry. He told me that I had everything in order. I was ready to get started. He was almost ready to let this bird fly on my own. But as he leaned back in his chair and put his feet up on the desk, he looked me squarely in the eye and asked me “Why would any company use your service to ship their products?”. I paused for a second before replying and before I could say anything, U.J. stopped me and said, “You hesitated, and I don't even want to hear your answer at this time. Take a week and come back to me with a good answer”. My answer was going to be that I was going to be professional, on time, and reliable. But thinking back to when I was running the freight desk at a shipper, I thought “Well, that's not a very special reason for anyone to use me, because that's what every trucking company says”. I was still thinking of the question posed to me by U.J. as I arrived home and picked up my mail from the mailbox. The answer came to me as I opened an envelope with a toothpaste sample in it. For many years I had been buying the same brand of toothpaste. I never really thought about it before, but I had been using the same brand of toothpaste that my parents had bought many decades prior. It turns out that this toothpaste sample that I had just received was from the opposing major brand. I decided to give this free trial a chance. I thought to myself, “This is the answer I need to take back to the SBA”. My plan was to use a “special introductory rate” that was good for a prescribed time frame to demonstrate to a shipper the benefits of using my company to transport their products. I also would ask them to give me the shipment going to the consignee which they regularly had trouble with. At the end of this trial period, I would have a better idea of what it took to conduct business with this “troublesome” customer, and they would also have a clear view of what my company was all about. My process would be arriving at the consignee at the scheduled time, typically first thing in the morning. I would walk in with a box of donuts to introduce myself and inform them that I would be delivering to them regularly. As a result, when I started my business, this simple little step, often, led to the consignee requesting the shipper to send me with the next delivery. The key to this whole process was that when it came time to negotiate what the actual freight rate was going to be, I had the upper hand because I had successfully pleased the consignee who in the past was normally complaining about something. I will say that there was much more to the process than this. However, it’s important to have a reason as to why any new prospective customer would want to utilize your services over the carriers who are already servicing their business.

Truck parking is one of the most frustrating issues that the trucking industry faces. With roughly 313,000 spots to park nationwide for 3.5 million drivers, it’s no wonder why truck parking is such a problem. Truck drivers will usually park for free at truck stops due to the offered amenities, or at rest stops. However, when they can’t find parking there, they either have to risk their safety and park in a less than desirable area or pay for parking out of pocket. Many drivers, especially those new to the trucking industry, might have a difficult time understanding why the truck parking shortage is such an issue. The reality is that there’s no easy answer. There are many reasons why there’s a shortage of parking spots, including: The ELD Mandate : With HOS (hours of service) being restricted, drivers are now required to park after a specified number of hours, which increases the demand for spots. Closed rest areas: Many of the country’s rest areas need renovations and states often don’t have enough funding to repair or replace them. Shippers not letting trucks park at their dock : Many shippers fear drivers will leave the area worse than they found it, and will then have to clean up afterward. This may be an unfair assumption, but nonetheless, a reality that drivers have to navigate. RVs and cars using truck spots: Sometimes recreational vehicles and passenger cars are directed to take truck parking spots because of their size. Sometimes these motorists just don’t know any better or don’t have anywhere else to park. So, what are some of the long-term solutions to the lack of truck parking? Federal level : In June 2023, two new major federal grants were awarded to expand the nation's commercial truck parking capacity. The two awards , totaling more than $33 million, will create 170 new truck parking spaces located at freight corridors in Louisiana and Texas. State level: According to the American Transportation Research Institute, many local governments aren’t aware of how bad the truck parking problem truly is, so they’ve decided to develop three guidebooks that would help states better manage and improve truck parking facilities. Trucking Associations: In 2022, the American Trucking Associations and the Owner-Operator Independent Drivers Association sent a letter to the U.S. Secretary of Transportation urging that the Infrastructure Investment and Jobs Act funds be prioritized to boost the nation's truck parking. Private sector : Companies like Love’s are opening up more and more truck stops across the nation to create more parking spots, as well as other private companies, like Big Rig Parking, creating paid parking lots so truckers can reserve a spot in advance. While there’s not much any of us can do to immediately solve the parking shortage, there are a few things that you do have control over. Here are some things that you can do to have the best parking experience possible. Parking Etiquette Practicing parking etiquette might seem tedious, but it’s the right thing to do. By being a courteous parker, you’ll make it easier for companies to provide and maintain safe parking for drivers. Follow these tips the next time you park your truck: Be tidy : Take your trash to the trash cans, and don’t leave a mess for a fellow trucker or truckstop/shipping dock employee to deal with. Back your trailer in : Don’t park in the spot headfirst as this eliminates road space for others. Make sure the front of the truck is facing outwards. Check the spot you’re backing into : Before you back into a spot, make sure it’s not already marked as reserved. A poorly marked spot will be harder to see, so double-check it to avoid getting woken up in the middle of the night by an employee asking you to move. Be mindful of other drivers: Avoid making loud noises when parked, we’ve all had a noisy neighbor at some point - don’t be a nuisance to others. Leave no trace : If there’s any grass around the parking spot, don’t drive on it - be respectful of the surrounding land and environment and leave no trace behind. Don’t stay parked in fuel islands : Get your fuel, and get moving. Parking Safety With so few spots available, sometimes parking in a less-than-desirable area is the only choice, so safety must always be your top priority. No one wants to think about a burglary, or worse, but the reality is that you need to be prepared if something does happen. Here are some tips to help keep you safe when you park: Avoid parking on the shoulder. Try to park in areas that are well-lit. Trust your instincts - if something doesn’t feel right in a certain area, leave immediately. Make sure your trailer is locked and secured, and avoid discussing what you’re hauling with anyone to prevent yourself from becoming a target. Invest in a good lock for your trailer, like this one: The Enforcer Lock . Close the curtains, and lock your doors. Strap your doors shut and set up a makeshift alarm system. Consider taking your dog on the road with you. Not only are they wonderful companions, they’re also great at notifying you of an intruder. These furry friends are also a tax deduction ! Be prepared to defend yourself. Keep items like pepper spray or a baseball bat within reach in case someone breaks in. Parking Solutions Free parking is always ideal, however, it’s not always possible to do so in a safe manner. Paid parking is controversial, some drivers like it, while others don’t. However you feel about it, there are tools available that can help you book and reserve spots in advance, if you choose to do so. We’ve listed some free and paid parking resources below that you can take advantage of: Free Parking Solutions Trucker Path helps you find free parking by providing real-time updates, or you can reserve paid parking in advance. Dock411 has a free version of the app that provides information on whether or not shippers allow overnight parking, restrooms, wifi, etc. DAT One also helps you find free parking or reserved parking. Paid Parking Solutions Truck Parking Club : reserve an hourly, daily, weekly, or monthly truck parking space at 1400+ locations across the US. Trucker Tools is a free app that allows you to reserve paid parking in advance. Pilot Flying J will enable you to reserve a parking spot at one of their locations. Truck Smart by TA Petro helps you reserve a paid parking spot at one of their locations up to 30 days in advance. Conclusion While truck parking is a complicated issue that has no easy solution, there are wheels in motion for long-term solutions, and more importantly, there are things that you can do today to enhance your parking experience. Remember to be mindful, try to plan ahead, and use the tools you have at your disposal. Park safely!

The last thing any trucker wants to think about is filing their taxes or wondering if they have found a good tax preparer who knows specifically about trucking taxes. But it’s better to conduct this search as early as possible. The closer you get to tax day, the harder it is to find a quality tax preparer. The following are various points to consider when choosing a tax preparer for truckers: Are you a self-employed truck driver that needs help with your taxes? Click here! Preparer Credentials and Ethics If you own a trucking business, it is recommended you hire a tax preparer who can handle complex tax issues and understands trucking taxes. A firm that hires tax professionals who are Enrolled Agents (EA) and Certified Public Accountants (CPA) not only addresses these issues, but has unlimited representation before the IRS. This is very beneficial in the event of an audit or collection proceedings. EAs and CPAs must not only pass rigorous testing requirements to achieve their designations but they must regularly complete a required number of continuing professional education hours to maintain these designations. Because these tax professionals are regulated, it is easy to verify if they have a questionable history by checking with the IRS Office of Enrollment for EAs, and the state board of accountancy for CPAs. Unenrolled preparers often have limited training and are allowed limited representation on behalf of their clients in IRS proceedings. Furthermore, without regulation, it may be difficult to check their background history. NEED HELP WITH TAXES? REQUEST MORE INFORMATION PTINS and E-filing A paid preparer must have a Preparer Tax Identification Number (PTIN) and if they prepare and file more than 10 returns for clients they must file electronically. The client copy of the tax return should show the preparer's name and PTIN in the signature area of page two of the Form 1040. Never agree to do business with a tax preparer who does not provide this information and/or refuses to provide their clients with copies of their tax returns. Signing the Tax Return In the height of a busy tax season, it is easy to make mistakes. To ensure accuracy, tax firms will use a double check process where tax returns are prepared by tax accountants and then reviewed by a senior tax accountant. The senior tax accountant handles the final review of the tax return and signing of the tax return. An experienced senior tax accountant will then discuss the tax return results with their client and make sure the client is comfortable with the numbers on the return prior to asking the client to sign it. Avoid tax preparers who do not enlist a double check process and refuse to discuss the tax return results with their clients or ask their clients to sign a blank tax return. Records and Documentation Good tax preparers will ask for all your W-2, 1099 and 1098 forms as well as other records and receipts to verify income, expenses and credits. Preparers who are willing to e-file returns using paystubs in place of W-2s are in direct violation of IRS rules and regulations. Preparer Availability Because the IRS and most States conduct audits and send letters of inquiry throughout the year, it is best to work with a preparer who maintains office hours beyond the filing deadline so they are available to answer your questions or assist with any tax return correspondence. Fee Determination Instead of asking a preparer what their fees are, ask how they determine their fees. For taxpayers with more complex returns that require several forms, it is normally better to select a firm that charges a set fee for the type of return (1040, 1065, 1120S, 1120), rather than one that charges by form. The reason is because this can be rather costly. Client Security Unfortunately, the tax preparer industry has not remained immune from the ever-increasing problem of security breaches. Never hesitate to ask a preparer how they safeguard client confidentiality in the form of physical and electronic security of their clients' information and records. If the answer is not to your satisfaction then walk away. Hire a Tax Preparer for Truckers If you need help managing your taxes, consider hiring ATBS to help you out. ATBS has been in the industry for more than 25 years and we are experts in trucking taxes. We offer a variety of services including accounting, bookkeeping, and tax preparation, specifically for truck drivers. We also offer unlimited business consulting for our RumbleStrip Professional clients. ATBS just recently launched the ATBS Hub , which makes working with us even easier! If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827. Sources: http://www.consumerreports.org/cro/news/2012/02/how-to-find-a-good-tax-preparer/index.htm# http://taxes.about.com/od/findataxpreparer/a/tax_accountant.htm http://www.forbes.com/sites/kellyphillipserb/2014/01/22/11-questions-to-ask-when-hiring-a-tax-preparer/

Generally, as a rule, I have made it a habit to track many of my business’s numbers. I do this for several reasons: To benchmark against my peers To identify problem areas and To measure improvements I have made in my operation The fact is that, if you want to change anything, you first must be able to measure it. One of the simplest things is to track fuel consumption on paper. Tracking fuel mileage is something I do, because I remember the figures and notations better when I write them down. I also make little notations, so that if my actions while driving improve my fuel efficiency, I know that it’s a practice that should be continued. By the same token, if I tried something different and the results lowered my efficiency, that information will be used to ensure the practice doesn’t continue. My friend Yunsu Park recently put together an initiative using Geotab telematics to see how my practices during driving influenced the productivity and efficiency of our trucking operation. We’re not only tracking fuel mileage, but also use of time. This is important because it doesn’t matter how efficient an operation is, if it can’t complete the assigned task of delivering the freight to its destination. So far, the only numbers that have been tracked are things that can be controlled such as speed, cruise control usage, and the amount of time the equipment is being utilized. However, using the hours of service to its full extent and planning the time of day to avoid high-density traffic is greatly beneficial. The benefits of avoiding high-density traffic are better fuel efficiency, better use of available operating hours, and reduced exposure to risk. Herein is the information that we have compiled so far. In the future, there will be items that will be added such as precipitation, temperature, wind direction, and percentage of grade change on the road. Tracking your financials to gauge how your business is doing, is also important. With a service like ATBS, you’ll have easier access to know where your numbers stand, identify problems with your operation, and keep your records in good order and up to date.

Everyone wants to have a successful tax filing season and we’re here to help you with the steps to take now to ensure a smooth process. Here are a few simple steps we require to ensure everything moves as smoothly and efficiently as possible. Step 1 - Don’t Delay in Sending in Business Income and Expenses Let ATBS do the heavy lifting on your bookkeeping now before the busy season arrives! We need the full picture of your income and deductions before the tax preparation process can begin. Stay diligent in sending receipts each month and if you need to catch up in sending ATBS your receipts from prior months, now is the time for action. Don’t spend time on things that aren’t necessary. Per diem is a large deduction for self-employed truck drivers. You can save time by not having to send ATBS your E-logs and food receipts because we’ll calculate your per diem deduction based on the number of days you spent on the road. Also, see our ATBS Hub Mobile App for our per diem tracking tool to make per diem tracking even easier. Step 2 - Complete the Annual Tax Questionnaire (Tax Organizer) You’ll want to be prepared to send the below documents submitted to ATBS as soon as possible as the new year rolls over. Some of the below documents won't be available in January but that doesn't stop you from preparing and being ready for when these documents are available. A great first step is to complete and submit the tax organizer that ATBS sends in January. The tax organizer is used to kick off the whole tax process . Without a completed tax organizer, we won’t be able to get things moving. The tax organizer allows us to find every possible deduction to reduce your tax liability and this year we’re simplifying tax season with our new digital Tax Organizer, available exclusively in the ATBS Hub. Tax forms are also important. When your tax forms are available make sure you send a copy to ATBS. Forms such as: W-2 (Wages from employee jobs) 1099’s (Compensation from self-employed activity or other types of compensation) If you do not receive a 1099 look for a similar replacement document that verifies annual revenue such as a year to date (YTD), factoring statement, or other similar statements. 1095-A, 1095-B, or 1095-C (Health Insurance) Bill of Sales for purchased or sold pieces of equipment A copy of your prior-year tax return if ATBS did not file the return If you need help or have questions, please give us a call. Each year, incomplete tax organizers result in a significant slow-down in the tax return process. The sooner we receive your completed tax organizer, the sooner we can begin your tax return. Step 3 - Make Sure You’ve Paid in Full for Services Before we can get started on the tax preparation process, make sure you’ve paid your ATBS service fees in full. If you didn’t have one of our Rumblestrip full-service packages for twelve full months and you haven’t yet made the accounting completion fee payment, then it’s likely that you have outstanding tax service fees. If you are unsure about your current balance or would like to discuss payment options, please call us at 866-920-2827. Step 4 - Be Available We often have follow-up questions as we work through specific tax situations for clients. One of the most important things we ask of our clients is that you’re available to promptly respond to emails and voicemails from ATBS employees. The number one reason why the tax process is delayed is because we are unable to reach a client for answers to critical questions we need to complete their tax return. The sooner we can get things answered, the sooner we can move you along in the tax preparation process. Bonus Tip - Pay Your Quarterly Tax Estimates The purpose of filing a tax return is to report tax liability due to the IRS or file a claim for a refund. The IRS can’t assess penalties and interest if you don’t have a balance due. One of the top reasons that businesses fail is tax debt. To prepare and get ahead of any surprises you want to make all of your quarterly estimated tax payments throughout the year. Doing so will help you avoid penalties and interest from the IRS. ATBS is here to help take the burden and stress off your shoulders. Give us a call at 866-920-2827 and let one of our experienced tax professionals help you prepare your tax return.

If you’re an owner-operator truck driver, paying quarterly taxes can be a big change from the days when taxes were withheld from your paycheck as a W2 company driver . In fact, unpaid taxes is one of the leading causes of businesses failing. For this reason, it’s important to be diligent about how much money you set aside throughout the year for taxes. How much should you set aside for quarterly tax payments? Typically, January through March are often the slowest months of the year for freight cycles. This means that having a big tax payment due at the end of March can be a huge burden. Therefore, ATBS recommends that drivers set aside between 25 and 30 percent of their weekly net income for quarterly taxes. That way you aren’t caught off guard when you have to pay your quarterly taxes after a slow month. Let’s quickly break down where this 25-30% comes from. Many individuals will fall into the 10-12% income tax bracket. However, self-employed individuals will also need to set aside taxes for self-employment tax (Social Security and Medicare also known as FICA). Self-employment tax is roughly calculated as 15.3% of your business net income. So when you take 12% income tax, plus 15.3% self-employment tax, plus your state income tax, you get approximately 25-30%. ATBS recommends that you create an organizational system for setting aside money for tax payments throughout the year. At the beginning of the year, get all of your paperwork, tax documents, and finances in order to start the year off right. Then, set up an automated system for money to be transferred every week or every month into an account specifically for quarterly tax payments. It may seem like a big change at first, but setting aside money with each paycheck can quickly become part of your routine. Why is it important to pay your quarterly taxes? If you fail to pay your quarterly estimated taxes, you may be charged a late payment penalty. If you also fail to timely file your tax return , that’s another penalty tacked onto what you owe. Additionally, the IRS can apply their current interest rate of six percent to your balance due after all the penalties have been added on. All of this can add up quickly and put you and your business in a financial hole. This is why failing to pay your taxes accurately and on time is one of the leading causes for a business to fail. How much do you pay? It is recommended that owner-operators estimate taxes based on actual income since their income can vary significantly each month. Calculating and paying estimated tax payments based on your actual business income will help you avoid overpayment or underpayment of your taxes due. If you can't pay your entire estimated tax payment all at once, ensure you are at least paying what you can afford. For example, the IRS uses a safe harbor calculation to calculate a minimum quarterly tax payment due to avoid penalties. For simplicity, the safe harbor estimate is your tax liability from last year divided by four equal payments. Each quarter you would pay in one installment of the minimum amount. While this method may leave you with either an underpayment or overpayment come tax filing time, at least you won’t be penalized for not paying your quarterly estimated tax payments at all. How do you pay your quarterly taxes? You can pay your federal quarterly tax estimates online at www.irs.gov/payments or even on the IRS mobile app, IRS2go . ATBS recommends paying directly from your bank account as there is no fee. You will owe a percentage fee if you decide to pay with your credit card. Many states also allow you to make tax payments online. Each state may be a little different, so we recommend visiting your state’s Department of Revenue website to see how you can make a tax payment online. You also have the option of applying the tax refund you receive after filing your taxes to the quarterly taxes that will be due in the future. Many owner-operators want their refund right away, but this could be a good way of getting a head start on your upcoming estimated tax payments. So, should you pay your taxes quarterly? Technically you have the right to wait and pay your taxes once a year, but is it really worth it? When it comes to taxes, you should be taking small steps towards doing it right rather than handing over more of your hard-earned money by doing it incorrectly. If you have any questions about paying estimated taxes, call ATBS at 888-640-4829. One of our business consultants or tax professionals would be more than happy to assist you. Not an ATBS client? Give us a call at 866-920-2827 to enroll in our services!

Being an independent truck driver can be a stressful business. The holiday season can certainly add to that stress, with the desire to spend the holidays at home conflicting with the need to keep your business financially sound. Some shippers will shut down on Christmas and New Years, causing drivers to lose productivity for a whole week, maybe two. However, the holiday season can be a good time to stay on the road and work as much as possible, especially considering the annual slowdown typically occurs in January and February. In fact, ATBS Benchmark data shows contractors run 7% fewer miles in January than in November and December, because there is much less freight available in January. Let’s look at the financial consequences of some choices often made during the holiday season: Ignoring fixed expenses The average daily fixed expenses for owner-operators are $150 per day. Ignoring fixed expenses to take 7-10 days off for each holiday means $1,050 - $1,500 in costs each week that aren’t being offset by any revenue. Deadheading or driving out of route to get home Basic operating costs and fuel can be 75 cents per mile. If you deadhead or drive out of route 1,000 miles you’ve added $750 to your costs, again with no revenue to offset the additional costs. Losing momentum It’s difficult to get back up to speed after the holiday shutdown. It takes time to get into the flow of freight again, which means a reduction in revenue for days or even a week after you’re back at work. Thinking short-term Gift buying and entertaining increase your home costs. Significant time off during the holidays means less revenue to offset your increased financial burden. The freight slowdown in January and February also means limited prospects of digging yourself out of the hole until March or April—right before your taxes are due on April 15th. No one should miss a holiday with their family, but it is important to protect your business as well. Many drivers tend to start heading home a week or two before the holidays—which is the wrong thing to do. Do your best to run as many days as you can right up to the Holiday. Be creative in ways to get home without sacrificing a week or two or deadheading thousands of miles. Many trucks will already be parked for the holiday, so this could be your single best freight opportunity of the year. Let’s look at a few other ways to make this season work to your advantage: Fly instead of drive Considering your fixed and variable costs, if reasonable airfare can be found, it may make more sense to park your truck securely under load and fly home for only a day or two. Fly back and get the load running while everyone else is trying to get a load out of home. Make up missed holiday time in January Even though you may miss one of the holidays with your family by working as much as possible, you can take extra time off in January and make it up to them. Freight is slower then and the additional revenue you generated at the end of the year will make your time off less stressful. Don't be picky Now is not the time to be picky about what loads to haul after Christmas and through the end of February. Plus January and February are always the worst times of the year for freight. Think long-term The only way to offset the inevitable slowdown at the beginning of the year is by planning for it in November and December. Bring in revenue then and you’ll be in a better position to pay your bills come January and February. Tax Day also will be less of a burden. The holidays are a difficult time for everyone in trucking. It’s good to remember that when dealing with others you come in contact with—shippers, receivers, regulation enforcement, etc. A lot of people feel the extra stress, so when dealing with others, applying a little holiday cheer is likely to go a long way. ATBS is here to help you get through the holiday season. And by the way…Happy Holidays!

During the COVID era, driver turnover rates were at all-time lows for most carriers. Rates were up, fuel costs were down, and owner-operators were making money like never before. There was no need to move when they could work 4 days a week and still make record income. But over the past two and a half years, this stability has faded. Rising costs, shrinking rates, and increased challenges have driven turnover rates back up, creating widespread strain on carriers. In this article, we’ll examine the impact of high turnover on fleets and quantify the costs a carrier faces every time an owner-operator leaves. How Turnover Drains Your Fleet’s Resources 1). Departure Costs Owner-operators rarely leave at the first sign of dissatisfaction. Usually, they go through a phase of disengagement first. As their motivation drops, so does their performance, and this has serious implications for carriers: Performance and Reliability: Disengaged drivers may neglect maintenance, cut corners, or fail to deliver on commitments, harming both operations and morale. Profit and Service Impact: A driver who’s mentally checked out impacts customer service, which hurts satisfaction and, ultimately, revenue. A single disengaged driver can drag down an entire fleet's profitability over time. 2). Lost Experience Experienced owner-operators are invaluable assets. Contractors who know the ins and outs of your business operate efficiently, make quick decisions, and require less oversight. Every departure is a major investment loss—not just in skill, but in accumulated experience. Losing them means losing both expertise and smooth operations, as replacements take time to reach the same level of productivity. 3). Increased Overhead When an operator leaves, your overhead costs—rent, salaries, utilities—don’t go down. They remain fixed, but with fewer operators to generate revenue and absorb those expenses. As turnover rises, so does the impact of fixed costs on profitability. If the remaining operators—or any replacements you bring in—can’t bring in enough revenue to make up for the one who left, your profit margins take a hit. Each departure stretches resources thinner, and with fewer operators available, the impact of high trailer-to-tractor ratios becomes even more serious. Now, with limited drivers to handle each load, every gap is felt harder, and every missed opportunity or delayed shipment adds up to a higher overall cost of turnover. 4). Missed Opportunities Every operator who leaves doesn’t just take their revenue with them—they take potential profits, business relationships, and future opportunities. For example, if an operator is grossing $15,000 a month for his carrier, and the carrier has a 7% pretax margin, their departure means around $1,050 in lost monthly profit for the company. And that’s just one driver. Multiply this across every lost driver, and the cost quickly adds up. Each operator you lose also means fewer drivers to handle critical loads, creating gaps that leave customers waiting—or, worse, drive them straight to your competitors. 5). Replacement and Training Costs Recruiting, training, and onboarding a new driver is no small task. Recruitment costs alone include advertisements, exams, and processing applications. Training is equally resource-intensive, requiring orientation materials, trainers, and lost production time. Add to this the higher safety, cargo claims, and customer service costs that come with new drivers, and it’s clear that every new hire represents a significant financial investment. Even once trained, new operators may be restricted from handling your most valued customers and, with fewer miles, may not meet the contribution level of a proven operator for some time. High turnover forces you to invest continually in replacement and training—a costly cycle that can only be broken by keeping experienced drivers engaged and satisfied. Industry-Wide Impact: A Billion-Dollar Problem So, what’s the potential owner-operator turnover cost to the industry? Not only is there a cost to the carriers, but owner-operators who switch carriers incur costs that are often difficult, if not impossible, to overcome. The numbers often look like this: Cost to Carriers Estimated Number of Leased OO’s: 100,000 Estimated Average Turnover in 2020: 95% Estimated Cost of a new OO: $10,000 -------------------------------------------------------------- Estimated Total Cost of OO Turnover: $950 Million Cost to Owner-Operators 3 weeks of revenue NOT made while switching: $9,000 3 weeks of tractor and insurance payments: $4,500 (Minus expense for variable costs that didn’t happen like fuel, maintenance): - $3,100 Cost to get up to speed at the new carrier: $5,000 ------------------------------------------------------------------------ Total out-of-pocket cost to switch after one year: $14,350 Multiply $14,350 by 95,000 turned-over owner-operators, combined with the $950 million burden on carriers, reveals an industry-wide issue costing over $2 billion annually. How ATBS Can Help Your Fleet Curb Turnover and Protect Profits At ATBS, we specialize in tackling the root causes of turnover by helping owner-operators succeed, which in turn makes them more likely to stay with you. With over 200 fleets already benefiting from our services, we know that strong retention strategies work. Our resources help owner-operators manage their finances, improve their business decisions, and prepare for tax season— all at no cost to the fleet. With services like unlimited business consulting, driver coaching, monthly profit and loss statements, and tax preparation, ATBS empowers owner-operators to stay financially secure, engaged, and loyal to their carriers. Partnering with ATBS means building a fleet of satisfied, stable operators, reducing the high costs of turnover, and focusing on growth instead of replacement. Want to learn more about how a partnership with ATBS can help you with owner-operator turnover? Click here for a Fleet Success Story or click here to learn more about starting a partnership with us.

What does the recent election mean for your small business and trucking in general? If investors are any indication, the election means good things. While the overall stock market was up 3% the day after the election, trucking stocks were up 10% - three times more than the overall market. This means the betting people are betting on good things for trucking ahead. Here are a few reasons, based on history, that the Trump presidency will be great for trucking. Tariffs While tariffs are a broad complex issue, the overall sentiment is that in the short term it will drive up shipping as demand for overseas goods is pulled forward before the price goes up when tariffs are implemented. The long-term intent of tariffs is to pull more manufacturing and goods onshore in the US. This would certainly drive more shipping in the US. Oil “Drill Baby Drill” has been the Trump administration’s motto. Increased oil supply will mean lower oil costs resulting in reduced diesel prices. During the last Trump administration the DOE national average fuel price was $2.80, and it bottomed out under $2.00. This should mean significant reductions in your single biggest expense, fuel, which has averaged $3.77 during the past 4 years! Increased domestic production also means more freight and supplies need to be moved to grow that production, as well as needing to move all the new oil produced. Reduced Regulation During Trump’s last administration, he had a policy that for every new regulation proposed, two old regulations must be eliminated. Less regulation helps increase commerce resulting in more freight. And all indications are that his new administration will be even more aggressive at reducing regulations. Taxes The Tax Cuts and Jobs Act (TCJA) from the prior Trump administration greatly reduced taxes in many areas. For small business owners specifically, the Qualified Business Income Deduction (QBID) reduced taxes by thousands of dollars, as did increasing the Standard Deduction. Accelerated depreciation methods also reduced taxes and enticed investment and purchasing of capital goods which increased transportation. Many of the specific deductions enacted under the TCJA are set to expire in 2025. It is likely the Trump administration will extend them or make them permanent. Independent Contractor vs. Employee Attack It’s no secret that Democratic administrations would like everyone to be an employee as they are beholden to Labor Unions who can’t organize Independent Contractors. There has been great fear that the Biden administration would enact national regulation under the Pro Act or other means to resemble California’s AB5 anti-contractor law. During Trump’s last presidency he quickly unwound all the damage done to the Owner Operator business model during eight years of the Obama administration. It is easy to anticipate the same from Trump in this administration. So the bottom line is that after nearly three years of a very difficult trucking market, we expect things to turn around quickly as we enter a new era in 2025!

As a truck driver, it’s important to stay up to date on what’s going on in the industry. It’s also important you are getting your news from reliable sources that are honest, transparent, and report the news in depth. If you have been in the trucking industry for a while, you probably already have a place where you like to get your news. However, if you are new to the industry or just looking for more options, you may not know where to start. Let us help you out with our list of sources to get your trucking industry news. Overdrive Overdrive Magazine was started back in 1961. They are devoted to covering and supporting the businesses of owner-operator truck drivers. You can receive news from Overdrive on their website, their newsletter, any form of social media, and you can subscribe to a hard copy of the magazine for free. The website is sorted into many categories including News, Blogs, Life, Custom Rigs, Equipment, Business, Regulations, and Gear. ATBS partners with Overdrive to help educate owner-operators through the Partners in Business program. Each year ATBS and Overdrive produce a Partners in Business Manual and host seminars at the Great American Trucking Show. CCJ Commercial Carrier Journal (CCJ) is another business publication for the trucking industry and fleet professionals. They focus on providing business solutions for those responsible for running trucking companies and maintaining equipment. Like Overdrive, CCJ offers a website, a newsletter, and a free subscription to a hard copy of their magazine. The categories included on the CCJ website are News, Equipment, Business, Tech, Products, Blogs, Reviews, and the Tech Toolbox. CCJ also has their Top 250. This is a list of the top 250 trucking companies in America. Within this ranking, you can sort the companies by revenue, number of trucks and drivers, types of haul, geographic region, etc. Both Overdrive and CCJ are published by Randall Reilly. Land Line The first issue of Land Line Magazine was launched in 1975 after OOIDA needed its own way of communicating news to professional truck drivers. Today, Land Line continues to serve its original purpose of bringing solutions to owner-operators. Land Line’s website is simply broken out into News, Opinion, Podcasts, and Archives. The News section is divided into specific news by state. The Opinion section is called Tandem Thoughts and goes into Land Line’s opinion on certain relevant topics. Land Line also has a Podcast called Land Line Now that is hosted by Mark H. Reddig. You can hear Land Line Now on iTunes, Stitcher, Bullhorn, and Sirius XM Channel 146. Lastly, Land Line keeps an archive of their old magazines that you can look at by simply downloading the PDF. Transport Topics Transport Topics shows all aspects of the business of trucking. They want to deliver two things to their readers: clarity to make good decisions and confidence to engage with colleagues. The website categories include Government, Business, Technology, Equipment, Safety, Fuel, Logistics and even Autonomous. They also rank the Top 100 For-Hire and Private Companies and the Top 50 Global Freight and Logistics companies. Transport Topics provides many ways for you to listen to their news as well. They have a podcast called RoadSigns that is broken up into seasons. The latest season of the podcast is all about Aerodynamics and Fuel Economy. They also have Daily Briefings which is a quick rundown of all the news that you need from the day. Lastly, they have a show on Sirius XM hosted by Dan Ronan. The show initially airs on Saturday from 1 - 3 PM ET but it reruns on Saturday night, Sunday afternoon, and Sunday night. 10-4 Magazine 10-4 Magazine has been around since 1993. They have a physical magazine that is released each month but the magazine can also be viewed digitally on the website. Each of the articles within the magazine is displayed on the website and you can also call to see what locations you can pick up a physical copy of the magazine for free. On the website, you can look at archived articles that are sorted by category. The website also includes a list of Truck Shows & Events, a Gallery of old magazine covers & centerfolds, and an Entertainment section with Truckertoons and Words to live by. FreightWaves FreightWaves is a news source for the entire freight transportation industry, not just trucking. However, there is plenty of information on trucking and how the trucking industry ties into the freight industry as a whole. FreightWaves focuses on economics and the technological side of the freight transportation industry. The website includes news about freight markets, finance, risk & compliance, insights, innovation and partner content. You can also filter your search into specific modes of transportation including air cargo, container, maritime, railroad, and trucking. Like many of the other industry news sources, FreightWaves has a show on SiriusXM. Their show is on Saturdays from 3 - 5 PM ET on Road Dog Trucking Radio. They also post their own insightful video content called FreightWaves NOW, which is directly on the website. Lastly, there is a variety of podcasts that they host from shows, to deep-dive conversations, to daily mini podcasts that go into the top headlines for the day. TheTrucker.com TheTrucker.com publishes daily news articles covering the nation, business, jobs, equipment and technology, legislation, and regulations. Their mission is to provide the latest and most comprehensive news affecting the trucking industry with their award-winning journalism and news coverage that is informative, objective, and engaging. The Trucker newspaper has been proudly serving the trucking industry for more than 30 years. Fleet Owner Fleet Owner is a trucking news source specifically for executives and managers of trucking fleets that operate five or more vehicles. Their main focus is on information about operations, vehicle maintenance, industry regulations, and information-management technology. On top of this, they also report on the latest trends in hybrid technologies, diesel fuel economy, trucking safety, jobs, and employment. Fleet Owner’s website is broken out into a variety of categories including News, Equipment, Safety, Fleet Management, Running Green, and more. They also have a collection of webinars that you can listen to and white papers that you can download. You can make sure you don't miss out on Fleet Owner's content by subscribing to their newsletter or checking out the digital version of their magazine month to month. If you are looking for information specifically to help manage your fleet, this is a great resource. Truckers News Truckers News ’ mission is to be the number one lifestyle magazine for over-the-road truckers. Like Overdrive and CCJ, Truckers News is published by Randall Reilly. They don’t have a physical or a digital magazine but all of the content can be easily accessed on the website and you can also subscribe to their newsletter. The website has content that is organized into Trucks, News, Features, Fun, Health, What’s Hot, Videos, Jobs, She Drives, and Gear. Truckers News separates itself from other trucking industry news sources with the inclusion of the Fun and Health content. These articles and videos aren’t necessarily just for truckers but it's included because its entertainment and topics that truckers would probably find interesting. It’s easy to tell that Truckers News is not just focused on the technical and business side of trucking but also on how to make life better for truckers on the road. Heavy Duty Trucking Heavy Duty Trucking magazine began in the early 1900s by documenting the rapid changes that were happening in the business of moving goods around America. Today, their magazine reaches more than 115,000 executives at commercial truck fleets and over 4,000 truck and trailer dealership managers. Heavy Duty Trucking’s online offerings can be found at truckinginfo.com . Here, they provide daily news on trucking equipment, fleet management, safety, and ELDs, just to name a few. The news is delivered through newsletters, webinars, HDT’s Headline News, blogs, videos, whitepapers, and more. The blog itself is even broken out into seven sections which range from All That’s Trucking, to Trucker Tech, to Trailer Talk. Heavy Duty Trucking magazine and truckinginfo.com is an extensive source of trucking news that has important information for anybody in the industry. Bonus: Rate and Lane Information For trucking industry news specifically about freight rates, two recommendations we have are Truckstop.com and DAT . Both provide information about freight rates and trends. Truckstop.com provides information about the amount of available loads per segment, the average posted rate/mile, the amount of loads moved, and more. DAT shows spot rates for each segment and fuel price trends for the week, month, and year. DAT also has a blog, and a newsletter, that gives information about all things trucking and freight. Do you know where to get your trucking industry news? It wouldn’t be a bad idea to use a combination of these resources for your trucking industry news. It may also be beneficial to receive information through a variety of different mediums. Reading articles, listening to radio or podcasts, and watching videos from all of these resources might be the best way for you to feel like you are up to date on all things trucking. These are by no means the only places that are reliable for you to get your trucking industry news. However, these are reputable places that get the ATBS stamp of approval with their years of experience in accurate and in-depth reporting.

Addressing Misconceptions The trucking industry, long dominated by men, is seeing a steady rise in female participation. Despite this, stereotypes about women in trucking persist. These misconceptions not only perpetuate gender bias but also hinder progress toward a more inclusive workforce. In this post, we’ll break down some of the most common stereotypes surrounding women in trucking and provide evidence to counter them. 1. “Women Aren’t Strong Enough for Trucking” There’s a belief that trucking is a highly physical job requiring significant strength and that women aren’t suited for it. However, this stereotype is outdated. Reality Check: According to the Bureau of Labor Statistics, trucking is more about endurance, skill, and focus than physical strength. With technological advancements in trucks, such as power steering, automated transmissions, and hydraulic lifts, physical exertion has been greatly reduced. Women, just like men, undergo the same rigorous training and certifications, ensuring they are fully capable of performing the job safely and effectively. 2. “Women Can’t Handle the Long Hours or Isolation” It’s often assumed that the long, solitary hours of trucking are unsuitable for women, based on outdated notions of gender roles. Reality Check: A 2023 survey conducted by the Women In Trucking Association (WIT) found that many female truckers enjoy the independence that comes with the job. Data from the American Trucking Association (ATA) also shows that women in trucking report similar job satisfaction levels to their male counterparts. While the job can be challenging, many female drivers embrace flexible schedules and opportunities for long-distance travel. 3. “Women Aren’t Interested in Trucking” There’s a misconception that women simply don’t consider trucking as a viable career path. Reality Check: Women make up approximately 8% of all truck drivers in the U.S., a figure that has been steadily rising, according to the American Trucking Association. In Canada, the percentage of female truck drivers rose to 3.5% in 2022, with initiatives underway to attract more women to the profession. Programs led by organizations like Women In Trucking are focused on increasing female recruitment, providing mentorship, and breaking down the barriers that may prevent women from entering the industry. 4. “It’s Not Safe for Women to Be on the Road” Safety concerns are often cited as a reason why women might avoid trucking. Some believe women are more vulnerable on the road, which reinforces this stereotype. Reality Check: Safety is a priority for all truck drivers, regardless of gender. Many companies have implemented specific safety protocols for female drivers, including GPS tracking, secure parking areas, and better communication tools. In fact, according to a study by the Federal Motor Carrier Safety Administration (FMCSA), female truck drivers are statistically safer than their male counterparts, with fewer accident reports and safety violations. 5. “Female Truckers Won’t Be Taken Seriously” The notion that female truckers aren’t respected or taken seriously in the industry is another stereotype that persists. Reality Check: As the number of women in trucking grows, so does the recognition of their contributions. A survey conducted by Stay Metrics in 2021 found that the majority of female drivers reported positive relationships with their male colleagues and felt respected in the workplace. Additionally, women are moving into leadership positions within the industry, further dispelling the idea that they don’t belong in trucking. Moving Toward a More Inclusive Industry The stereotypes surrounding women in trucking are not supported by the facts. As more women enter the field, these misconceptions are being debunked, helping to foster a more diverse and inclusive trucking workforce. The industry is evolving, with women proving that they are not only capable but excelling in all areas of trucking—from driving to leadership. With continued support and recognition, the future of women in trucking looks bright. Additional Facts (to encourage women planning to pursue a career in trucking): The Women In Trucking Association estimates that women now make up 13.7% of all workers in the transportation and warehousing sectors, showing the growing female presence in trucking-related industries. Trucking companies are increasingly focusing on gender diversity, with many implementing recruitment campaigns specifically targeting women. Don’t be afraid to ask recruiters questions about their companies if you’re at all concerned about how diverse their staff is, and if there are inclusion goals they have set.