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Trucking & Transportation Companies: Payroll Tax Guide (2026)
Payroll tax for a trucking company is the federal stack every employer runs, withholding, 7.65 percent employer FICA, FUTA, deposits and Form 941, plus the trucking company items this page cites: IRS Notice 2025-54, IRS Publication 463 (2025) and IRS: Independent contractor (self-employed) or employee?. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Tax rules specific to trucking companies
For travel on or after October 1, 2025, the special meals and incidental expenses rate for the transportation industry is $80 per day within the continental United States and $86 per day outside it. Notice 2025-54 supersedes Notice 2024-68, which covered October 1, 2024 through September 30, 2025.
Publication 463 sets the 2025 standard meal allowance for transportation workers at $80 per day ($86 outside the continental United States) and allows individuals subject to Department of Transportation hours of service limits to deduct 80 percent of business meal expenses instead of the usual 50 percent.
Employers must withhold and deposit income, Social Security and Medicare taxes on wages paid to employee drivers and pay the employer share plus unemployment tax; generally no taxes are withheld or paid on payments to independent contractors.
The stack every trucking company runs
On one of the heavy and tractor-trailer truck drivers at the May 2025 national median of $58,640, the employer share of Social Security and Medicare is $4,486 a year, FUTA is $42 after the 5.4 percent state credit on the first $7,000, and income tax withholding follows the employee's W-4. Deposits are monthly or semiweekly depending on the prior lookback period, with a next-business-day deposit whenever $100,000 accumulates. Form 941 is due the last day of the month after each quarter; W-2s and any 1099-NEC at the $2,000 threshold are due January 31.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- For travel on or after October 1, 2025, the special meals and incidental expenses rate for the transportation industry is $80 per day within the continental United States and $86 per day outside it. Notice 2025-54 supersedes Notice 2024-68, which covered October 1, 2024 through September 30, 2025. [IRS Notice 2025-54]
- Publication 463 sets the 2025 standard meal allowance for transportation workers at $80 per day ($86 outside the continental United States) and allows individuals subject to Department of Transportation hours of service limits to deduct 80 percent of business meal expenses instead of the usual 50 percent. [IRS Publication 463 (2025)]
- Employers must withhold and deposit income, Social Security and Medicare taxes on wages paid to employee drivers and pay the employer share plus unemployment tax; generally no taxes are withheld or paid on payments to independent contractors. [IRS: Independent contractor (self-employed) or employee?]
Read the full guide to how to calculate payroll taxes, and the rest of the trucking company payroll library.
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Frequently Asked Questions
Trucking company payroll tax: IRS Notice 2025-54
For travel on or after October 1, 2025, the special meals and incidental expenses rate for the transportation industry is $80 per day within the continental United States and $86 per day outside it. Notice 2025-54 supersedes Notice 2024-68, which covered October 1, 2024 through September 30, 2025.
Trucking company payroll tax: IRS Publication 463 (2025)
Publication 463 sets the 2025 standard meal allowance for transportation workers at $80 per day ($86 outside the continental United States) and allows individuals subject to Department of Transportation hours of service limits to deduct 80 percent of business meal expenses instead of the usual 50 percent.
What is the employer tax cost on one of the heavy and tractor-trailer truck drivers?
At the $58,640 national median (BLS OEWS, May 2025): $4,486 in employer Social Security and Medicare, $42 in FUTA after the state credit, plus state unemployment at the employer's assigned rate.
What does managed payroll cost for a trucking company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Per-diem pay for drivers, owner-operator vs W-2 classification and DOT compliance are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Trucking & Transportation Companies. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: IRS: Understanding Employment Taxes
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