Why this matters now for carriers and owner‑operators

As cost pressures squeeze margins, tax and compliance decisions can move real money for trucking businesses. Kahn, Litwin, Renza & Co. (KLR) is highlighting two areas with immediate impact: (1) employee benefit plan audits and ERISA compliance, and (2) multistate state-and-local tax (SALT) exposure. For fleets with retirement plans and multi‑jurisdiction operations, the stakes include audit risk, cash taxes, and administrative overhead in 2026. KLR’s service lineup explicitly spans ERISA‑bound plan audits and a full SALT toolkit—nexus studies, sales/use tax consulting, voluntary disclosures, credits/incentives, audit defense, and more.

ERISA: the audit threshold shifted—confirm your 2025/2026 status

If your fleet sponsors a 401(k) or similar plan, revisit whether you’re “large” for Form 5500 purposes. A Department of Labor change—effective for plan years beginning on or after January 1, 2023—revised how defined contribution plans count participants for simplified reporting and the audit waiver. Plans now count only those with account balances at the start of the year, not all employees eligible to participate. This adjustment has allowed many small plans to avoid a full audit (and its cost), but plan sponsors must still meet filing requirements and maintain strong controls.

KLR’s employee benefit plan team emphasizes ERISA, DOL, and IRS compliance, performing 100+ plan audits annually and participating in the AICPA’s Employee Benefit Plan Audit Quality Center—signals that matter if your plan remains above the audit line or is selected for review.

Per diem and driver pay: new numbers to bake into 2026 budgets

For long‑haul operators using the transportation industry per diem, the IRS raised the special meals and incidental expenses (M&IE) rates. For the 2025–2026 period, the transportation M&IE is $80 per day within CONUS and $86 OCONUS. Policy updates—driver handbooks, payroll systems, settlement statements—should reflect the current rates and documentation rules to keep reimbursements nontaxable and defensible.

SALT exposure: multistate miles, many tax tripwires

Beyond income tax, carriers routinely encounter sales/use tax on assets and parts, local property taxes, and post‑Wayfair economic nexus standards that can pull you into filing even with limited physical presence. KLR’s SALT practice calls out core workstreams that align with trucking realities: nexus studies to determine where filings are required, reverse audits to recover overpaid sales/use tax, voluntary disclosure agreements to clean up past liabilities, and incentive reviews tied to equipment purchases or expansion. For multi‑state fleets, this kind of structured approach can curb penalties and unlock refunds.

Four actions for fleet finance teams this quarter

Re‑compute plan headcount under the current DOL methodology. If you’ve dropped below 100 participants with account balances at the plan‑year start, confirm whether you still need an audit for your next Form 5500 cycle.
Refresh travel and per diem policies. Align reimbursement rates, substantiation, and driver communications with the 2025–2026 transportation M&IE numbers to avoid taxable “wage” recharacterization.
Map your SALT footprint. Inventory where your trucks run, where parts are purchased, and where customers are billed; then prioritize nexus, sales/use tax exposure, and property tax assessments for high‑dollar states. KLR lists audit representation, reverse audits, and VDAs among available levers.
Tighten record retention. KLR’s current resources include a 2026 record retention guide—use it to align payroll, per diem, maintenance, IFTA/fuel, and asset documentation with audit expectations.

Questions to ask your CPA (or KLR) before spring

Under the updated participant count rules, will our plan need an audit for the upcoming filing, and what internal controls or data clean‑ups are required?
How should we document driver per diem to meet IRS substantiation without overburdening dispatch and payroll?
Which states present our highest SALT risk based on miles, customers, terminals, asset locations, and parts purchases—and what savings are realistic via reverse audits or credits/incentives?
Do we have exposure from past periods that’s best handled through a voluntary disclosure agreement before a notice arrives?

Bottom line

Between the DOL’s participant‑count change and higher IRS transportation per diem, 2026 is a good year to tune plan administration and driver pay policy. Add to that the expanding SALT footprint many carriers face, and a coordinated ERISA‑plus‑SALT strategy can reduce risk and free up cash. Firms like KLR—explicitly focused on ERISA plan audits and multistate tax problem‑solving—offer the kind of specialization that helps trucking companies turn compliance from a drag into a margin lever.

Sources Consulted: Kahn, Litwin, Renza & Co. (KLR); U.S. Department of Labor, Employee Benefits Security Administration (Fact Sheet on 2023 Form 5500 changes); Internal Revenue Service, Internal Revenue Bulletin Notice 2025‑54.

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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.