How it runs for limo, taxi and rideshare fleets
LedgerBPO supports the W-2 payroll in Gusto, ADP or Paychex: collecting hours and trips from the dispatch system, preparing the run for your approval, posting the journal by vehicle and department and reconciling liabilities to the bank. Settlements for commission and lease drivers are prepared from trip data under their agreements. You approve every run and settlement.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for limo, taxi and rideshare fleets
- Chauffeur hours, trips and overtime collected from dispatch and timekeeping and checked before the run
- Tips and mandatory service charges posted under the rule your CPA confirms
- Commission and lease-driver settlements prepared from trip data with agreed deductions
- Contractor and employee costs kept in separate accounts for year-end 1099 and W-2 reporting
- Payroll journals posted by vehicle and department and reconciled to the provider and the bank
The KPI that matters here
Payroll and settlements posted and reconciled within two business days of each pay date.
Limo & taxi compliance notes
Local licensing and permits
Taxi and for-hire licensing is local: medallions or permits from a city taxi commission, state public utility or transportation authority permits for limousines, airport pickup permits and, for vehicles carrying nine or more passengers across state lines, federal USDOT registration. We track each fee and renewal date, code it by vehicle and keep certificates on file. Applications and renewals are submitted by you or your permit service.
Driver classification: 1099 or employee
Whether a driver is an employee or an independent contractor depends on federal and state tests that differ, and app drivers in California fall under Proposition 22. We post pay exactly as your arrangement and your counsel define it, keep contractor and employee costs in separate accounts, and prepare the 1099 and W-2 figures at year end. We do not decide classification.
App payouts and platform reporting
Uber, Lyft and similar platforms deposit net payouts weekly and issue year-end tax forms based on gross fares, which will not match the deposits. We keep gross fares, platform fees, tolls and incentives in separate accounts so the ledger can be reconciled to the platform's annual statement and to the bank without adjustment.
Surcharges, sales tax and gratuities
Congestion surcharges, airport fees, ground-transportation taxes and, in some states, sales tax on limousine services are collected from passengers and remitted on their own schedules. Mandatory service charges are wages, not tips, under IRS rules. We track each collected amount as a liability and post gratuities under the rule your CPA confirms; you or your preparer files the returns.
Limo & taxi software we work in
- QuickBooks Online
- Xero
- Square
- Stripe
- Gusto
- Limo Anywhere
- Moovs
- iCabbi and Autocab dispatch
- Uber and Lyft fleet portals
- All 50 platforms
More for limo, taxi and rideshare fleets
Other services for limo & taxi
Frequently asked questions
Do you run fleet payroll or just record it?
We prepare and support the run inside your payroll provider and record it in the ledger; you approve and submit each run. Gusto, ADP or Paychex still calculates taxes and files returns. Our value is in collecting trips and hours correctly, treating tips and service charges the right way, posting by vehicle and reconciling liabilities, which is where fleet payroll usually goes wrong.
How are tips and mandatory service charges paid to drivers?
Voluntary tips collected on cards are passed to drivers through payroll or settlement as tips, reported under your tip policy. Mandatory service charges added to invoices are paid as wages, because the IRS treats them that way, and are subject to normal withholding. We post each under the rule your CPA confirms and keep them in separate accounts.
Can you help with driver classification?
We can keep contractor and employee costs separate, prepare 1099 and W-2 figures at year end and flag arrangements that look inconsistent with how a driver is being paid, so you can raise them with counsel. Whether a driver is an employee or a contractor is a legal question that depends on federal and state tests, and we do not decide it.
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