We are entering our 45th year of business and we have seen many changes in the transportation field over the years. We adapted to these changes and helped our clients to meet these ever-changing federal and state requirements. Every day we are still learning and we will continue to strive to help keep up with future changes and keep you in compliance. We have updated our online driver management program, to make it more secure and handle the new drug and alcohol clearinghouse requirements.
Do not hesitate to contact us with any transportation questions. If we do not know the answer we will obtain an answer.
FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION - FMCSA
The Drug and Alcohol Clearinghouse has been active since January 6, 2020. Carriers can not use a driver that is subject to drug and alcohol testing until a Drug and Alcohol Clearinghouse Query has been run. All carriers must also do an annual query on each of their drivers who are subject to DOT drug and alcohol testing.
The DOT has set the 2024 annual drug testing at 50 percent and 10 percent for alcohol of the covered drivers to meet the 2024 testing rates.
Motor carrier companies are randomly selected to submit an MIS - Management Information System Report of their drug and alcohol testing results from the prior calendar year. If selected, the reports are due by March 15. If you are in our drug testing consortium send us the form and we will file your report.
Electronic Logging Devices - ELD's service providers have been shutting down their 3G networks to make room for more advanced network services, including 5G. As a result, many older cell phones and other mobile devices will be unable to use data services. Once a 3G network is no longer supported, it is highly unlikely that any ELDs that rely on that network will be able to meet the minimum requirements established in the ELD Technical Specifications, including recording all required data elements and transferring ELD output files.
The FMCSA requires that Class 1 carriers file their financial reports each year with the agency. All carriers that are Class I (adjusted gross revenues of $3 million or more) must file the annual report “Form M” (excluding revenues from private carriage, compensated intercorporate hauling, and leasing vehicles with drivers to private carriers). Quarterly reports are no longer required. Class II carriers (adjusted gross revenues less than $3 million) are exempt from any filings.
Class I Passenger carriers (adjusted gross revenues of $5 million or more) must file Form MP-1 annually. Class II passenger carriers (adjusted gross revenue less than 5 million) are not subject to the filing.
Carriers that are just entering a new class may not need to file the returns. A worksheet has an inflation factor for adjusting the last three years of revenue to determine the adjusted gross income. This figure is then used to determine the correct class the carrier is in. Form M and Form MP-1 reports are due March 31st.
INTERNATIONAL FUEL TAX AGREEMENT - IFTA
All states have extended the 2023 IFTA licenses and decals expiration date until February 29, 2024, if they were renewed by December 31st. Contact our office if you do not have your 2024 IFTA license and decals.
The state has a new mileage tax that started on January 1, 2023. Carriers must be registered for the tax and obtain a Highway Use Fee Permit. Copies of this permit must be carried in the vehicles that go to the state.
There will be monthly tax filings and the tax ranges from 6.54 cents per mile for 26,000 GVW vehicles and up to 17.5 cents per mile for vehicles over 80,000 GVW. An 80,000 GVW vehicle will pay 10 cents per mile. The January tax filing will be due by February 29, 2024.
If you have not contacted us on establishing an account in Connecticut and obtaining a Highway Use Fee Permit do so as soon as possible.
The state’s Corporate Tax Report requires carriers to pay tax on their corporate income each year. The tax must be paid by carriers that travel more than 50,000 loaded miles in the state and make at least one pick-up or delivery in the state or any carrier having five percent or more of their miles in Pennsylvania and has more than 12 trips with pick-ups and/or deliveries during the year. Other carriers must still file the return but will be exempt from paying taxes if the company does not meet the above de-minimis standards.