Fsc ?

[AutonomyRex]

Wasn't sure where to post this question exactly, and made a double thread, my apologies...delete or move if needed, thought it might be a tax question for an accountant, than thought the drivers would know as well...
To O/O's or a fleet owner, or fleet driver whom can answer this question, which I cannot locate in all my searches.

Is FSC Taxed.???

Been a Company Driver all my driving years.....

I have been made an offer to run a fleet owners' truck for a 65/35 split. Paying for fuel, yet only being offered 65% of the FSC.

I always read that drivers paying for fuel should get/do get 100% of FSC as they are paying for fuel.

Yet this owner, whom many respect and have been with for some time, and are doing very well financially.....says that he, The fleet owner, must pay taxes on FSC, so he pays 65/35 of what carrier pays to him.

This is in expedite, and I spoke with the driver who is buying a tractor to go out on his own, and has been a driver for this owner for about 18 months, and in expedite for 6 years. He seemed to be ok with it....he wasn't promoting it, only excepting of it as he gets 65%.

But Still........is FSC taxed? Do O/O's or Fleet owners pay taxes on your FSC? Or is This a red flag?

Any help would be appreciated.

THX
A-Rex

 

[OntarioVanMan]

I would say the FSC is NOT taxable..BUT the fuel is...some drivers don't fuel properly and the taxed owed on fuel can be quite abit..the owner has to pay this..hence they with hold a portion of the FSC to cover this...IF one fuels properly and is aware of individual state fuel taxes..there should be almost no tax owed or some actually get a rebate....

To me 35% is high...

 

[greg334]

FSC is a separate issue altogether to fuel taxes and used to offset the cost of fuel - not a direct payment for fuel. Because it is part of a contractual agreement, the FSC is compensation, the same as a bonus. It appears on your 1099 as with everything else.

You derive the FSC from the load, not from fueling.