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Trucking & Transportation Companies: Year-End Payroll Checklist (2026)
Year-end payroll for trucking companies is W-2s and any 1099-NEC to employees and contractors by January 31, the fourth-quarter 941 and annual 940, and the trucking company items that decide which boxes are right: IRS Notice 2025-54, IRS Publication 463 (2025) and IRS. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Trucking company items that shape the W-2 and 1099s
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 January calendar
W-2s and W-3 to the SSA and copies to employees by January 31; 1099-NEC for each contractor paid $2,000 or more in the year, the threshold for tax years after 2025, by the same date; Form 940 and the fourth-quarter 941 by January 31 as well, with a 10-day extension where all deposits were on time. Ten or more information returns of any kind, counted together, must be filed electronically. For trucking companies the reconciliation that matters is that the pay codes for per-diem pay for drivers, owner-operator vs W-2 classification and DOT compliance landed in the right W-2 boxes for every employee.
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 handle year-end payroll and W-2s, and the rest of the trucking company payroll library.
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Frequently Asked Questions
Year-end for trucking companies: 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.
Year-end for trucking companies: 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.
When are W-2s and 1099s due for a trucking company?
January 31 for both, to the recipient and to the SSA or IRS. The 1099-NEC threshold is $2,000 for tax years after 2025, and 10 or more information returns of any type must be e-filed.
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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