By: Drew Klaus
Did you know that not all companies record the lumper expenses on the driver settlements? Make sure to review the expenses listed on your settlements for lumper expenses and other tax deductible expenses when providing information to your accountant!
For example, Prime Inc. sends an advance through the settlements to pay for lumpers, however when lumpers are paid out by the driver the lumper expense receipts are not recorded on the driver's settlements as an expense. This is why your accountant will need all lumper expenses - whether they are paid out of pocket OR paid through comdata check. Upon request, Abacus CPAs has the ability to go through the lumper receipts turned into Prime Inc. upon request and count the amount of lumpers paid with a comdata check; however doing so will incur a $70 fee.
Other transportation companies may subtract the amount of lumper expenses back out of the driver's settlements but categorize it as a reimbursement. If a driver's lumpers are already subtracted out of a settlement, Abacus will only need the amount paid out of pocket for lumpers.
For more clarification on lumpers, please feel free to contact us at 417-380-5000.