Coalition Partners Succeed in Overturning UCR Fees for ... Winter Issue.pdfbilling contractors for unpaid 2016 and 2017 fees. Fines were also assessed in some cases. P.O. Box 268 •

On December 13, American Bus Associa-tion (ABA), in coalition with the National

School Transportation Association (NSTA), New York School Bus Contractors (NYSBCA) and others, succeeded to overturn a prior mis-guided decision by the Unified Carrier Registra-tion Plan (UCR) Board to apply registration fees to intrastate for-hire school bus contractors. At their December, 2018 meeting, the UCR Board of Directors voted unanimously to change the prior decision, which will go into effect for the 2019 fee cycle.Last year, at their December, 2017 meeting, the UCR Board made a decision finding that the UCR registration and fee requirements applied to school bus contractors based on the entirety of a contractor’s school bus fleet rather than only the buses providing interstate service, crossing state line, as defined under the Federal Motor Carrier Safety Administration’s (FMCSA) Form MCS-150. Additionally, some states have been billing contractors for unpaid 2016 and 2017 fees. Fines were also assessed in some cases.

www.nysbca.com P.O. Box 268 • Latham, NY 12110E-mail: [email protected] Phone: 518-220-9905 • Fax: 518-220-9906

Winter 2018-19

Coalition Partners Succeed in Overturning UCR Fees for Intrastate School Bus Contractors

Calendar of EventsFebruary 5, 2019NYSBCA Board of Directors MeetingAlbany, NY

March 14th, 2019Commissioner’s Advisory Committee for Pupil Transportation ServicesAlbany, NY

May 18, 2019NYSBCA’s NYS School Bus Safety CompetitionRockland Lake State Park

June 6th, 2019Commissioner’s Advisory Committee for Pupil Transportation ServicesAlbany, NY

October 18-20, 2019NYSBCA Annual ConventionRivers Casino & Resort, Schenectady, NY

October 19, 2019NYSBCA Annual Membership MeetingRivers Casino & Resort, Schenectady, NY

As a result, ABA, NSTA and 23 other regional and state motorcoach and school transportation associations petitioned the UCR Board to recon-sider their December, 2017 decision and exempt school buses that only travel in intrastate com-merce to and from school and school-related ac-tivities for the purposes of calculating a carrier’s fleet size for payment of UCR fees.This year, the UCR Board revisited their prior de-cision. After learning from NSTA’s review of the industry, that on average contractors only use 5 percent of their fleet in interstate service rather than the 100 percent presumed by the Unified Carrier Registration Plan, the Board unani-mously overturned their prior decision. Further, it was noted that 2016 and 2017 financial records should be closed by all states and thus fee collec-tion for those years should not be conducted by any state. Also, as 2018 fee collection is ongoing, it was decided the change would go into effect for 2019.

2 The Yellow Bus, Winter 2019

This publication is a member service of the

New York State Bus Contractors AssociationP.O. Box 268, Latham, NY 12210

(518) 220-9905 • (518) 220-9906 (fax)www.NYSBCA.com

———2018-19 NYSBCA Board of Directors

OFFICERSBree Allen, President

The Trans GroupCorey Muirhead, 1st Vice-President Logan Bus Company Inc. & Affiliates

Nick Vallone, Secretary Rolling V Bus Corp.

Tommy Smith, Treasurer Suffolk Transportation Service, Inc.Michael Martucci, Past-President

Quality Bus Service, LLC

DIRECTORSKyle Albers

Huntington Coach CorporationTim Birnie

Birnie Bus ServiceRobert Brown

Brown TransportationSeth Corwin

Chappaqua TransportationLinda DeSabato

Vallo TransportationDan Higbie

Student Transportation of AmericaPatrick Kinane

Golden Sun Bus Service, Inc.Sean McCabe

First Student, Inc.Paul Mori

Huntington Coach CorporationLee Selby

Selby Transportation CorporationSheldon Stewart

National Express Transit NE DivisionNeil Strahl

Pioneer TransportationCarmen Tomeo

WE Transport, Inc.Brett Wester

Durham School Services

HONORARY LIFETIME MEMBERSEd Arrigoni

NY Bus ServiceKevin Clifford

Huntington Coach Corp. & Hendrickson BusJohn Corr

The Trans GroupJohn J. Corrado

Suffolk TransportationTimothy Flood

The Trans GroupRobert Pape

Dell TransportationPhil Vallone

Rolling V. Bus CorporationR. Thomas Weeks

Scholastic Transportation Management Services. Inc.

STAFFJennifer Hickey Bruce, CMP

Executive DirectorBrad Gerstman

Government Affairs RepresentativeNicole Epstein

Public Relations Representative

Post-Midterm Elections House Leadership Elections: House Democrats and Repub-licans held elections over the past few weeks to determine leadership roles since the November 6, 2018 Midterm Elections.

Fiscal Year 2019 Funding: One of the big-ticket agenda items for Congress over the current lame duck session is to complete appropriations for Fiscal Year 2019. Many of you will recall that two bills of interest fall within the appropriations funding:

• Prior Approval Reform - A provision to prevent enforcement by the FEC of the requirement to obtain permission from trade association members before soliciting for PAC contributions is pending in the House Financial Services appropriations bill. This will be resolved in the lame duck session.

• DERA Funding - House has asked that the DERA program be funded at $100 million, however Senate is asking for $50 million. The DERA Coalition, which NSTA is a member of, has written to the Conferees asking for the House funding level, which will be reconciled in the lame duck session.

H.R. 88 - Year-End Tax Bill Proposal: On November 26, 2018, House Republicans released a draft text of an end of-the-year tax bill that contains tax extenders, a few technical corrections, IRS reform, and bipartisan retirement legislation. It also in-cludes a number of transportation-related incentives that expired at the end of last year, or are expiring in the not-too-distant future. The IRS would have 30 days to publish its guidance and a 180-day filing extension that measures from 30 days after the issuance of the IRS guidance. At this point, it’s difficult to determine how likely it is that this makes it through the process to bill signing. This draft legislation will continue to be monitored.

FMCSA Streamlines Process Allowing Individuals with Properly Managed Diabe-tes to Operate Commercial Motor Vehicles: FMCSA revised its regulation to permit individuals with a stable insulin regimen and properly controlled insulin-treated dia-betes mellitus (ITDM) to be qualified to operate a commercial motor vehicle (CMV) in interstate commerce .Previously, ITDM individuals were prohibited from driv-ing CMVs in interstate commerce unless they obtained an exemption directly from FMCSA. This new rule allows a certified medical examiner (ME) to grant an ITDM driver with a Medical Examiner’s Certificate for up to 12 months.

In order to be eligible, ITDM drivers must secure an Insulin-Treated Diabetes Mellitus Assessment Form (ITDM Assessment Form), MCSA-5870 from their healthcare pro-fessional who manages, and prescribes insulin for the treatment of the individual’s dia-betes. Certified MEs must then determine that the individual meets FMCSA’s physical qualification standards and can operate a CMV in interstate commerce.

Written Comments Submitted to Dept. of Trans on Automated Vehs Document 3.0: U.S. DOT had published a request seeking public comments on its document, Preparing for the Future of Transportation: Automated Vehicles 3.0. The 3.0 docu-ment builds upon Automated Driving Systems: A Vision for Safety 2.0 (ADS 2.0) and expands the scope to provide a framework and multimodal approach to the safe inte-gration of AVs into the Nation’s broader surface transportation system.

Written comments have been submitted to this Federal Register, cautioning the de-ployment of autonomous vehicles in the student transportation industry.

Federal Legislation & Regulation Updates for School Bus Contractors

Winter 2019, The Yellow Bus 3

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Gov. Andrew Cuomo cleaned off his desk for the year early Saturday morning, acting on all of the remaining 113 bills

that required his signature or veto.

Cuomo vetoed a bill that would add expand the state’s paid fam-ily leave system by adding three months of bereavement leave for the loss of a relative. While the governor led a push to create the system two years ago, he said the proposed expansion would be too costly.

“Workers are entirely responsible for funding the costs of this program,” he wrote in his veto message. “[T]he twelve-week ben-efit upon full implementation would constitute an extreme ex-pansion of the PFL program, the cost of which would result in a dramatic burden on low-wage work-ers.”

Cuomo vetoes bill to guarantee 12 weeks of bereavement leave

During the 2019-20 school year, SED will be conducting a Mas-

ter Instructor Preparation Program. The program will consist of a total of nine instructional days during three sessions, of three days each, in the beginning, middle and end of the course. All classes will be conducted in the Albany area. The preparation program will also include of a year-long apprenticeship or mentor pro-gram (July 2019 – July 2020), during which candidates will work with a certified Master Instructor to develop a project.

Applications will be scored on a point system. All applications must be re-ceived no later than April 1, 2019. If you should have any questions con-cerning the application process, your eligibility or your application specifi-cally, please feel free to call Jim Mini-han at (914) 941-7700 ext. 1335.

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Leonard Bus Sales Encourages NYSBCA Members to Submit Nominees for 2019 Leonard Family Scholarship

With the New Year just around the corner, Leonard Bus Sales is reminding NYSBCA members that the deadline

for submitting applications for the 2019 Leonard Family Schol-arship is March 1, 2019.

The Leonard Family Scholarship is devoted to promoting stu-dent success after high school with preference given to students who pursue careers in diesel and automotive mechanics, and those with financial need.

“We established the Leonard Family Scholarship to assist stu-dents who seek to enrich their future by enrolling in a techni-cal or college education program,” said Leonard Bus Sales Vice President, Jon Leonard. “We truly appreciate the partnership we have forged with the New York School Bus Contractors As-sociation and look forward to awarding next year’s scholar-ship.”

The Leonard Family Scholarship is open to children of mem-bers of the New York School Bus Contractors Association and is awarded annually. A one-time scholarship of $2,500 is paid directly to the winner’s educational institution.

“Our family and the entire Leonard Bus Sales team are com-mitted to the future success of children and the school trans-portation industry. We hope the Leonard Family Scholarship provides an additional incentive for students to pursue their dreams,” Leonard said.

For more information about the Leonard Family Scholarship or to obtain an application, please contact the New York School Bus Contractors Association.

The 2019 Leonard Family Scholarship winner will be an-nounced at the New York School Bus Contractors Association’s annual school bus safety event, which will be held in May, 2019.

School Bus Mobile App “Here Comes the Bus”® Tops One Million Users Synovia Solutions™ climbs into top 50 ranking in app store in the education category

The surge of downloads to kick off the school year has rock-eted “Here Comes the Bus” to more than a million down-

loads, resulting in a top 50 position among education-related apps on the iTunes app store.

Synovia Solutions currently works directly with many school districts across the Empire State as well as partnering with New York State bus contractors servicing a multitude of school districts and communities state wide.

“We’re pleased to have earned the trust of school districts and bus contractors across New York and are working hard every day to ensure they have the GPS tracking info as well as cus-tomer support they require to best serve their communities,” said Synovia CEO Jon King. “We’re enthusiastic about what the future holds for serving school districts and transportation professionals across the state as our capabilities improve and more parents come to rely on our signature app to stay con-nected to their children’s daily school bus commute.”

The app that’s revolutionizing the way parents, students and education officials interact with the school bus has earned 4.6 stars on the app store with more than 28,000 reviews.

Launched in 2014 by Indianapolis-based Synovia Solutions LLC, the app “Here Comes the Bus” provides real-time track-ing info as well as e-mails and push notifications to connect parents and students with their bus. The app is a powerful yet simple way to destress hectic mornings as bus riders no longer worry about the exact arrival time of their bus.

While “Here Comes the Bus” delivers a rewarding experience, administrators rely on additional features like driver ‘time and attendance’ as well as vehicle tracking that sends alerts about excessive idling or unsafe driving.

The student ridership feature allows students to check in and off the bus each day, further connecting parents, students and school officials.

School officials interested in learning more about Synovia Solutions as well as “Here Comes the Bus” may contact Jean Boeglin at [email protected] or Brad Bishop at [email protected].

215-896-3846 | [email protected] | www.rckelly.com

RC Kelly Law Associates provides business advice and legal counsel to hundreds of school bus contractors across the country. You too should get guidance from professionals with concentrated experience in our industry. The bus stops here.

Share your news with NYSBCA!

The New York School Bus Contractors Association wants to help you promote your company’s achievements through

the media and continue to spread the word about all the great things our members are doing through our website, Facebook page, and Yellow Bus newsletters.

Please e-mail your success stories to Jennifer Bruce at [email protected].

Examples include school bus safety initiatives, community in-volvement, charitable donations, awards, milestones, favorable media coverage and anything else that’s potentially positive news for your company and the NYSBCA.


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NYS Legislative UpdateThis upcoming legislative session, one thing is for sure,

there will be some big changes in Albany. As the year 2018 comes to an end, so does GOP control of New York’s Senate, as the Democrats won the majority this past election cycle and now have complete control of New York state government. This is the first time the Democrats took control of New York State Senate since 2010.

The puts Senator Andrea Stewart-Cousins, D-Yonkers, as the powerful Senate majority leader, who has a major role in craft-ing budgets and legislation each year at the Capitol. In addi-tion, the new chair of the Senate Education Committee is Sena-tor Shelley Mayer and the new Senate Transportation Chair is Senator Tim Kennedy. On the NYS Assembly side, the new chairman of the Transportation Committee is Assemblyman William Magnarelli and the new Education Committee Chair will be Assemblyman Michael Benedetto.

Our team is in discussions with the Governor’s Office, the Di-vision of Budget, key legislators in both houses and their staff as we gear up for what we believe will be a very productive state legislative and budget cycle. With that said, as we approach the start of the legislative session, we are continuing to focus strongly on the Governor in regard to a sales tax exemption for school bus, parts, and fuel being included in the NYS 2019 budget. We made sure to have early discussions and numer-ous meetings with the Governor’s office, members of the As-sembly and Senate in regard to our overall legislative agenda (especially our bill sponsors) to make sure we hit the ground running in 2019 for the NYSBCA.

For the past few months, we have had numerous conference calls and outlined our goals and interests while identifying those key decision makers in the Governor’s office that we need to work closely with for the successful pursuit of our ultimate goal. As a result, the Governor’s office scheduled us for an in person meeting at the Capitol that we attended with NYSBCA President, Bree Allen, on December 11, 2018.

At that meeting, we met with the Governor’s key staff mem-bers from Finance and Budget who ultimately advise the Gov-ernor on what ends up in the final Budget. By meeting with these key staff members before the legislative session started up in Albany, we were able to get in front of the usual chaos and noise that travels through the Capitol when every other industry is running to the Governor’s office with their budget requests. This put us not only ahead of the pack, but also al-lowed us to have the full and undivided attention of these key decision makers in the Governor’s office.

Although this is great, it is essential that we keep the pace up and the pressure on in Albany because lawmakers and the Gov-ernor will be hesitant to include any budget initiatives that add new costs to the state’s fiscal plan and will incorporate budget neutral items if politically expedient. We remain confident in our ability to get this done, however, we must remain realistic and focus everyday on reaching the ultimate goal. Therefore, please reach out to us if you can visit the Capitol to directly lobby your particular representative this way we can coordi-nate our efforts. We look forward to the membership’s contin-ued involvement as this is, thankfully, a very politically active

group with each individual member contributing significantly at their respective local level and community.

Furthermore, while in Albany, the Governor scheduled a meeting for us with the Executive Deputy Commissioner of the NYS DOT to discuss the membership’s concerns with the newly enforced 15 day period for the OOS buses before DMV plate surrender. We are hoping to have that period extended, and will provide NYSBCA membership with an update as soon as we receive confirmation from DOT in writing as to their decision.

In summary, a sales tax exemption, along with a host of school bus safety bills, which include increasing fines for illegally passing school buses, will be the main thrust of the NYSBCA’s overall agenda. Furthermore, we will continue to track and focus on blocking or improving legislation, which could have deleterious effects on the private school transportation indus-try. However, with the democrats taking control of the New York Senate for the first time in a decade, I can’t stress enough how important it is that we have all hands on deck from the en-tire membership this year as strength truly comes in numbers. For NYSBCA to be successful, it is essential that all members are involved by supporting our PAC, engaging with your local legislators, and attending NYSBCA events including a lobby day at the Capitol.

If you have any suggestions regarding important legislative or public relations initiatives that you would like to see addressed, please feel free to reach out to me at [email protected] or call 516-880-8170.



Join in the Annual “Love the Bus” Program

As part of the annual National Love the Bus program, the American School Bus Council (ASBC) is encouraging

parents, students and teachers to thank the men and women who take more than 26 million children safely to schools each school day.

The Love the Bus program, founded in 2007 and coordinated by the American School Bus Council (ASBC), is celebrated on Valentine’s Day and through-out February in school districts across the country as a way to raise awareness and appreciation for the hundreds of thousands of school bus drivers who safely transport school children to and from school each day on 480,000 buses, the largest and safest transportation system in the country. It is also an opportunity

for parents and children to learn more about the safety and environmental benefits of school bus transportation.

We are encouraging parents, teachers and children to thank school bus drivers for the wonderful job they do every day. Love the Bus officially takes place in February, but we hope

they’re recognized for their posi-tion as role models every day.

This is a great opportunity to honor your drivers and to pro-mote yellow school bus ridership -- you don’t want to miss it!

To find out more about how you can promote Love the Bus

in your district and community, visit www.LovetheBus.com where you can download a How to Guide, Best Practices for Communicating about School Transportation, Transportation Guidelines, School Bus Safety Mandates and more.

We Mourn the Loss of Longtime Member, Joan Corwin, Owner of Chappaqua Transportation

Joan R. Corwin, owner of Chappaqua Transportation since 1970, died Dec. 15. She was 83.

Prior to her acquisition of Chappaqua Transportation, Joan was a transportation supervisor for Northern Westchester BOCES. Joan was a BOCES Adult Education Instructor for the State Education Department School Bus Driver Course and credited by SED for implementing the “most sophisticated” school bus driver 20-hour course in the state of New York. This course was to become the foundation for the state mandated 30-hour course that NYS school bus drivers are presently required to take.

Joan was the first female Transportation Supervisor in NYS to become a member of New York Association for Pupil Trans-portation (NYAPT). She was a NYS DMV 19-A Examiner and a NYS Certified School Bus Driver Instructor (SBDI) begin-ning in 1970. In 1972, she became a member of the Governor’s Council of Women in Highway Traffic Safety.

Joan was a member of National School Transportation Asso-ciation (NSTA) and served on the Long-Range Planning and Safety Committees. She received the Association’s Golden Merit Award in 1977.

In 1987, Joan joined the New York School Bus Contractors As-sociation’s Board of Directors and served on the Safety and Legislative Committees. In 1995, she was presented with the NYS School Bus Contractor of the Year Award. In 1996, Joan became the Executive Secretary to the Board and in 1999, she was the President of the Board. Joan was the recipient of NYSBCA’s Lifetime Member Award in 2011.

In 1990, her company was recognized by the U.S. Department of Labor as one of 15 model small companies in the nation for implementation of its drug testing and Employee Assistance Program.

From 1994 through 2000, Joan was a Board Member and Spokesperson for Pupil Transportation Safety Institute (PTSI).

In 1998, Joan was appointed to the State Bus Driver Training Council by Gov. George Pataki.

Additional contributions include: Member of the SBDI Advi-sory Board, NYSBCA Representative of the Tri-Agency School Bus Transportation Council, School Bus Fleet’s “Great Fleets Across America” award winner, NYS Delegate for the 13th National Congress on School Transportation (NCST) and in 2003, chosen by School Bus Fleet as one of the “Top 25 Fasci-nating Industry Personalities”.

Joan is also credited with being instrumental in the passage of legislation banning the use of hand-held cell phones while operating a motor vehicle.

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2018 National School Bus Safety Poster Winner Announced

Every year, students across America submit poster designs that are based on a specific school bus safety theme. The

first place/ overall winning poster will be used to promote Na-tional School Bus Safety Week in 2019. National School Bus Safety Week is an active and evolving public education pro-gram designed to promote school bus safety. This annual event is held during the third full week in October each year.

The theme for the 2018 Poster Competition was “My School Bus, The Safest Form of Student Transportation!” Recently, the 2018 winners were announced, including the overall winner! The overall winner was Shivangi Ojha, an eighth-grade student from Belton ISO in Texas, for her poster showing school bus safety features.

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2019 Master Instructor Course Information

During the 2019‐20 school year, SED will be conducting a Master Instructor Preparation Program. The program will consist of a total of nine instructional days during three sessions, of three days each, in the beginning, middle and end of the course. All classes will be conducted in the Albany area. The preparation program will also include of a year‐long apprenticeship or mentor program (July 2019 – July 2020), during which candidates will work with a certified Master Instructor to develop a project. Applications will be scored on a point system. All applications must be received no later than April 1, 2019. If you should have any questions concerning the application process, your eligibility or your application specifically, please feel free to call Jim Minihan at (914) 941‐7700 ext. 1335.

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Reasonable Compensation and S CorporationsUnlike a C corporation, which itself pays the tax on its tax-

able income, an S corporation does not directly pay taxes on its income; instead, its income, losses, deductions, and credits are distributed across its shareholders’ individual tax returns on a pro rata basis. These distributions are not subject to self-employment (Social Security and Medicare) taxes. As a result, many S corporations ignore the requirement that each shareholder-employee must take reasonable compensation in the form of W-2 wages in exchange for services performed for the corporation. These wages are subject to Social Security and Medicare taxes (which the corporation and the employee generally split equally); the corporation is also responsible for paying the Federal Unemployment Tax (as well as any state un-employment taxes).

The Internal Revenue Code establishes that an officer of an S corporation is an employee of that corporation for Federal Un-employment Tax purposes. S corporations should not attempt to avoid paying this tax by treating their officers’ compensation as distributions rather than as wages.

This has been an issue for decades; in 1974, the IRS issued a ruling stating that, when a shareholder-employee fails to take a salary, or if that salary is unreasonable, an auditor should as-sert that the salary is unreasonable. The officer’s distributions will then be shifted to account for reasonable compensation, and he or she will be assessed the related employment taxes and penalties. At stake here are the employee’s 6.2% Social Se-curity and 1.45% Medicare payroll taxes, the S corporation’s matching amounts, the Federal Unemployment Tax, and what-ever state taxes happen to apply.

Who Is an Employee of the Corporation? – Generally, an of-ficer of a corporation is considered an employee of that corpo-ration. The fact that an officer is also a shareholder does not change the requirement that any payments made to that officer must be treated as wages. Courts have consistently held that S corporation shareholders who provide more than minor ser-vices to their corporation (and receive payment in return) are employees whose compensation is subject to federal taxes.

Tax regulations do provide an exception for officers who do not perform services or who perform only minor services. These officers are not considered employees.

What’s a Reasonable Salary? – The instructions for Form 1120S (“U.S. Income Tax Return for an S Corporation”) state: “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.” There are no specific guidelines in the tax code regarding the definition of reasonable compensation. The various courts that have ruled on this issue have based their determinations on the facts and circumstances of the individ-ual cases. These are some factors that courts have considered when determining reasonable compensation:The officer’s training and experience • The officer’s duties and responsibilities • The time and effort that the officer devotes to the business • The corporation’s dividend history • The corporation’s payments to non-shareholder employees • The timing and manner of the bonuses paid to key people at the corporation

(continued on page 15)



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Reasonable Compensation and S Corporations (continued from page 13)

• The payments that comparable businesses have made for similar services • The corporation’s compensation agreements • The formulas that similar corporations have used to determine compensation

The IRS has a long history of examining S corporations’ tax returns to ensure that reasonable compensation is being paid, particularly when a corporation pays no compensation to em-ployee-stockholders.

New Issue For 2018 – The late-2017 tax reform added a new flow-through deduction (also referred to as the “199A deduc-tion” after the section of the tax code that describes it). This deduction applies to S corporations (among many other busi-ness entities) and adds another level of complexity to the deter-mination of reasonable compensation.

The wages of an S corporation’s employee-stockholder are NOT treated as qualified business income (QBI) that is eligible for the individual’s 199A deduction. However, the corporation deducts these wages as a business expense when it calculates the profit that passes through to the shareholder as QBI on Schedule K-1. Thus, larger wages mean less K-1 flow-through income (QBI) and thus a smaller 199A deduction (as that is equal to 20% of QBI). In this case, S corporations tend to mini-mize stockholders’ salaries in order to maximize flow-through income; this strategy increases the employee-stockholder’s 199A deduction and lowers the payroll taxes for both the cor-poration and the employee-stockholder.

• If married taxpayers who are filing a joint return have 1040 taxable income that exceeds $315,000 (or $157,500 for those with other filing statuses), the 199A deduction begins to be subject to a wage limitation. Once the 1040 taxable income for married taxpayers filing jointly exceeds $415,000 (or $207,500 for those with other filing statuses), the wage limitation is fully phased in. In that event, the 199A deduction becomes the lesser of the wage limitation or 20% of the QBI; if the wage limitation is zero, there is no 199A deduction.

The wage limitation comprises the wages that the corporation paid, including those paid to stockholders, plus the unadjusted cost of the qualified property that the corporation owned and used during the year. To be more specific, the wage limitation is the larger of

• 50% of the wages that the corporation paid or

• 25% of the corporation’s paid wages plus 2.5% of the unadjusted cost of its qualified property.

Thus, for those high-income shareholders for whom the wage limitation applies, if the corporation pays no wages and has no qualified property, the shareholder will not have a 199A deduc-tion.

If an S corporation is a specified service trade or business, the 199A deduction phases out; for married taxpayers who are fil-ing a joint return, it phases out at taxable incomes between $315,000 and $415,000 (for those with other filing statuses, it phases out between $157,500 and $207,500). The IRS describes

specified service trades or businesses are those in the fields of health, law, accounting, actuarial science, performing arts, ath-letics, consulting, financial services, and brokerage services, as well as those for which reputation and/or skill are contributing factors (for more details on what constitutes an specified ser-vice trade or business, please give this office a call).

Thus, if married taxpayers who are filing jointly have taxable income in excess of $415,000 (or $207,500 for those with other filing statuses), they receive no benefit from the wage limita-tion; therefore, they also tend to minimize their reasonable compensation in order to minimize their FICA taxes.

Contact Rick Anastasia ([email protected]) or Jeff Klahr ([email protected]) to see how our firm can help you and your business realize the most tax savings possible. Lutz, Selig & Zeronda, L.L.P. provides accounting, tax and consulting services to a wide range of businesses in the transportation industry and is a proud member of the New York School Bus Contractors Association.


Thomas Built Buses

For the first time in many years a new state-of-the-art me-dium duty diesel engine has come to the school bus market.

Thomas Built Buses gave the pupil transportation industry its first glimpse of the new Detroit DD5 engine at the National As-sociation for Pupil Transportation (NAPT) Summit in Kansas City.The DD5 diesel engine is available in the Thomas C2 and is equipped with Detroit Connect Virtual Technician. The DD5 is the first of two new mediumduty engines, with the Detroit DD8 planned to follow. “The Detroit DD5 medium-duty en-gine, as well as the upcoming Detroit DD8 engine, will provide exceptional fuel efficiency, power, proven performance, and reliability as well as the lowest total cost of ownership,” said Caley Edgerly, president and CEO of Thomas Built Buses. “We are proud to be able to bring this level of technology and in-novation to the pupil transportation industry and to provide a new solution for our customers who know and love diesel,” Edgerly said.

News Flash!! Team Matthews is set to Grow again!

Matthews Buses Inc. set to open a new state of the art bus deal-

ership in Avon, New York in the fall of 2019. The new facility will show-case an expanded service center, that includes an eight bay collision and paint center, complete with a state of the art paint booth and mixing room. The service center will also in-clude ten service bays and two dedi-cated wash/detailing bays. Within our new dealership there will also be an expanded parts department offer-ing more than double the parts in-ventory to better service our Western New York customers. The new deal-ership will allow us to have dedicated space for technical training, along with opportunities to host meeting for our transportation partners. We look forward to hosting everyone at our open house and grand opening fall of 2019!

It’s Time to Renew Your Membership

It’s time for membership renewals with the New York School Bus Contractors Association (NYSBCA) and we thank you

for being a member throughout 2018. Hopefully you will con-sider continuing your membership and that you find the infor-mation and benefits offered helpful to you. Watch your mail for your renewal notice (followed up with a few email reminders).

Remember, our association is here to help you and your busi-ness. If you have some news to share, a question for us to re-search, or a suggestion, be sure to give us a call (518-220-9905) or send us an e-mail ([email protected]) and we will find the answers for you and share the information. If there are others in your company that would like to be added to our distribution list, just let us know!

2019 Membership Renewal Form GENERAL PURPOSE: New York School Bus Contractors Association is a not-for-profit association whose primary mission is to promote safe, reliable and cost-effective student transportation services for New York’s school children. Through membership, you can help us speak as one voice in helping improve our school bus safety laws, further spread our message about the benefits of private pupil transportation and make a positive impact on the entire school transportation industry. MEMBERSHIP DUES STRUCTURE:

Supplier/Vendor Member: $500.00 Organizations and companies engaged in a business with school bus industry-related products and services. Contractor Member: Any private contractor who contracts with school districts for pupil transportation. School bus contractor dues are based on the total number of vehicles (units) in the company. Breakdown is as follows:

# of Vehicles (Units) Cost

1 - 25 $ 500.00 26 – 50 $1000.00

51 – 100 $1500.00 101 – 250 $2500.00 251 – 500 $4500.00 501 – 750 $6000.00 751 - 1000 $7000.00

1001 - 1500 $8000.00 1501 + $9000.00

Retired Member: $ 25.00 Personal members who have retired from full-time employment in school transportation or related fields are eligible for discounted retiree dues.

Bus PAC ASSESSMENT (voluntary): Please consider a generous donation to our political action campaign (PAC) this year. We anticipate an extremely active legislative session where we will have to be both proactive and reactive on a number of fronts. PAC is an important way your company can help with this effort.

Dues PAC Contribution* $ 1.00 - $ 399.00 $450.00 $ 400.00 - $ 999.00 $900.00 $ 1000.00 - $ 3799.00 $1800.00 $ 3800.00 - $4999.00 $3000.00 $ 5000.00+ $4000.00

*IRS Ruling has determined that political contributions are not tax deductible. Maximum PAC contributions are $5000 per year for a corporation and $150,000 per year for an individual.

New York School Bus Contractors Association P.O. Box 268 Latham, New York 12110 www.NYSBCA.com


2019 Membership Renewal Form GENERAL PURPOSE: New York School Bus Contractors Association is a not-for-profit association whose primary mission is to promote safe, reliable and cost-effective student transportation services for New York’s school children. Through membership, you can help us speak as one voice in helping improve our school bus safety laws, further spread our message about the benefits of private pupil transportation and make a positive impact on the entire school transportation industry. MEMBERSHIP DUES STRUCTURE:

Supplier/Vendor Member: $500.00 Organizations and companies engaged in a business with school bus industry-related products and services. Contractor Member: Any private contractor who contracts with school districts for pupil transportation. School bus contractor dues are based on the total number of vehicles (units) in the company. Breakdown is as follows:

# of Vehicles (Units) Cost

1 - 25 $ 500.00 26 – 50 $1000.00

51 – 100 $1500.00 101 – 250 $2500.00 251 – 500 $4500.00 501 – 750 $6000.00 751 - 1000 $7000.00

1001 - 1500 $8000.00 1501 + $9000.00

Retired Member: $ 25.00 Personal members who have retired from full-time employment in school transportation or related fields are eligible for discounted retiree dues.

Bus PAC ASSESSMENT (voluntary): Please consider a generous donation to our political action campaign (PAC) this year. We anticipate an extremely active legislative session where we will have to be both proactive and reactive on a number of fronts. PAC is an important way your company can help with this effort.

Dues PAC Contribution* $ 1.00 - $ 399.00 $450.00 $ 400.00 - $ 999.00 $900.00 $ 1000.00 - $ 3799.00 $1800.00 $ 3800.00 - $4999.00 $3000.00 $ 5000.00+ $4000.00

*IRS Ruling has determined that political contributions are not tax deductible. Maximum PAC contributions are $5000 per year for a corporation and $150,000 per year for an individual.

New York School Bus Contractors Association P.O. Box 268 Latham, New York 12110 www.NYSBCA.com


MEMBERSHIP CONTACT INFORMATION:

Name of Contractor, Supplier/Vendor or Retired Member Main Contact Title Mailing Address City State Zip Phone Fax e-Mail

NYSBCA is a company/organization membership association. Therefore, your company/organization is the member and any employees of it can be included in association communications. Please list additional contacts you would like included in membership here or attach additional information.

Additional Contact/Title e-Mail Additional Contact/Title e-Mail Additional Contact/Title e-Mail

Does this membership include other companies within your company/organization? If so, please list:

___________________________________ ___________________________________

___________________________________ ___________________________________

TOTAL CONTRIBUTION: Membership Dues: $ _______________ + Bus PAC Contribution: $ _______________ = $ _______________ Total Enclosed

Please complete this form and return it with your payment (Check, Money Order, Visa or MasterCard) to:

NYSBCA P.O. Box 268

Latham, New York 12110 Fax: (518) 220-9906

Questions about Membership? Contact Jennifer Bruce at (518) 220-9905 or [email protected].

CREDIT CARD INFORMATION (MasterCard or Visa accepted only): Card Number: ______________________________________________ Expiration Date (MM/YY): _______/_______

Name on Card: ______________________________________________

Signature: ______________________________________________


18 Tips for Dealing with Driver Shortage

School bus driver shortage is an ongoing challenge for the industry that has recently gotten worse. Here are best

practices in tackling the problem, from boosting recruiting efforts to addressing absenteeism:

1. Offer a signing bonus2. Offer a referral bonus3. Optimize school bus routing4. Print business cards - One side of the card says “Now Hiring Bus Drivers,” and the other side provides details about the job, including the flexible hours and benefits5. Hold job fairs6. Shorten hire times7. Contribute to health insurance costs8. Propose a pay raise to the board9. Advertise (in newspaper ads, on billboards and even in church bulletins)10. Identify key demographics for drivers11. Double up or double back - Double up lighter buses with students from the absent driver’s bus and double back a bus to transport the students of an absent driver12. Offer supplementary work13. Support school bus discipline14. Get current drivers to help recruit15. Provide incentives in pay, guaranteed hours16. Promote the job to parents17. Reward perfect attendance18. Have staff ready to drive

ByteCurve Launches School Bus Routing, Scheduling Platform

Analytics software supplier ByteCurve has launched its flag-ship product ByteCurve 360, a software solution designed

to enhance school transportation management. The software allows users to manage daily operations from anywhere, at any time, through scheduling, dispatch, and time and attendance modules.

ByteCurve 360 offers real-time routing information and GPS data through a daily dashboard that refreshes every 60 sec-onds. The dashboard provides status updates for each bus route, including bus departures and returns, a driver’s clock in and out times, and school arrivals.

Federal Topics: Infrastructure

Surface transportation is the remain-ing infrastructure piece left undone

after a Federal Aviation Administra-tion and water resources bill was passed last year. Incoming House Transportation and Infrastructure Chairman Pete DeFazio (D-OR) has said infrastructure will be his number one priority and is looking at a $500 million package. With the FAST Act expiring in 2020, the infrastructure bill could easily morph into a reauthoriza-tion bill. The recurring problem that will plague the effort is finding revenue to put the Highway Trust Fund in the black and support increased invest-ment. NSTA will be at the table for

additional regulatory relief and expansion of opportunities from H.R. 2120 for inclusion in this package in the event an infrastructure bill comes together next year.


P.O. Box 268Latham, New York 12110

Read These Stories InsideCoalition Partners Succeed in Overturning UCR Fees for Intrastate School Bus Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Federal Legislation & Regulation Updates for School Bus Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Cuomo vetoes bill to guarantee 12 weeks of bereavement leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

2019 Master Instructor Course Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Leonard Bus Sales Encourages NYSBCA Members to Submit Nominees for 2019 Leonard Family Scholarship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

School Bus Mobile App “Here Comes the Bus”® Tops One Million Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Share your news with NYSBCA! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

NYS Legislative Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Join in the Annual “Love the Bus” Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

We Mourn the Loss of Longtime Member, Joan Corwin, Owner of Chappaqua Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

2018 National School Bus Safety Poster Winner Announced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

NYSDMV Adds Additional Test Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Reasonable Compensation and S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Thomas Built Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

News Flash!! Team Matthews is set to Grow again! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

It’s Time to Renew Your Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Membership Renewal Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-18

18 Tips for Dealing with Driver Shortage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Federal Topics: Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

ByteCurve Launches School Bus Routing, Scheduling Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Documents

Coalition Partners Succeed in Overturning UCR Fees for ... Winter Issue.pdfbilling contractors for unpaid 2016 and 2017 fees. Fines were also assessed in some cases. P.O. Box 268 •