Payroll for Freight and Border Businesses
Laredo employers withhold no state income tax, but freight businesses still have demanding payroll: drivers paid by the mile, warehouse crews working nights and weekends, and staff who live in Nuevo Laredo. BOMCAS runs payroll for Laredo employers remotely and files the federal and Texas Workforce Commission reports.
For federal and TWC basics, see the Texas payroll page. This page looks at drivers, warehouses and cross-border staff in Laredo.
Drivers Paid by Mile or Load
Many drivers are paid per mile, per load or as a percentage of revenue. Federal overtime law exempts many drivers covered by the Motor Carrier Act, but local drivers on small vehicles, and warehouse staff, are not exempt. Pay must still meet the minimum wage for all hours worked. Per diem paid to drivers who stay away overnight can be paid tax free under an accountable plan, and we keep it separate from wages.
Employees or Owner-Operators
Drivers who own or lease their trucks and contract with a carrier are often independent contractors, but drivers who use the company's trucks under its control are employees. Misclassifying drivers can lead to back payroll tax and TWC assessments. We review each arrangement and issue W-2s or 1099s correctly.
Warehouse and Yard Workers
Warehouses and yards run long shifts with overtime and shift premiums, which must be included in the regular rate. Temporary staff supplied by agencies are generally the agency's employees, but the warehouse should confirm this in writing.
Employees Who Live in Mexico
Some Laredo employees commute daily from Nuevo Laredo. U.S. citizens and green card holders living in Mexico are taxed in the U.S. like any resident. Mexican nationals authorised to work in the U.S. who commute from Mexico may be nonresidents for tax, which changes their W-4 and withholding, though wages for work in the U.S. remain subject to Social Security and Medicare. We review each worker's status.
Retail Staff
Stores serving Mexican shoppers hire extra staff for holidays and weekends. Seasonal workers need new hire reports, and the last paycheck for an employee who is let go is due within six days under Texas law.
Restaurant Servers
Laredo restaurants may pay servers $2.13 an hour in cash wages if tips raise their pay to at least $7.25. Servers report tips each pay period, and the W-2 shows qualified tips separately for the federal tip deduction available for 2025 through 2028.
Unemployment Tax
Laredo employers register with TWC once they meet the wage or 20-week test and report wages quarterly. New accounts usually start at 2.7 percent of the first $9,000 per worker. Benefit claims from drivers and seasonal staff should be answered promptly to protect the employer's rate.
Drug Testing, Licences and Payroll Records
Motor carriers must keep driver qualification files, drug and alcohol testing records and hours-of-service logs under federal safety rules. These are not tax records, but payroll and safety data should agree: a driver paid for a trip should show it in the logs. Matching the two helps in audits by the Department of Labor, the IRS or insurers.
Bonuses and Safety Pay
Safety, fuel economy and on-time bonuses are wages and are taxed like any other pay. If they are paid for work during a period, federal law may require them to be counted when calculating overtime for non-exempt workers such as yard and warehouse staff.
Our Payroll Work
- Mileage and load pay calculations.
- Per diem under an accountable plan.
- Driver classification reviews.
- Withholding for workers living in Mexico.
- Federal and TWC filings.
Laredo Payroll Questions
Are truck drivers exempt from overtime?
Many interstate drivers are, under the Motor Carrier Act exemption, but warehouse staff and some local drivers are not.
Can we pay drivers tax-free per diem?
Yes, under an accountable plan for overnight travel, kept separate from wages.
Are workers who live in Nuevo Laredo subject to FICA?
Yes, on wages for work in the U.S., though their income tax status may differ.
When is the final paycheck due in Texas?
Within six days for an employee who is discharged.
Talk to BOMCAS About Payroll in Laredo
Payroll entries land in the ledger and the business return, and owner salaries are a planning choice. Missed deposits are handled under back taxes, drivers can get help with their own returns, restaurants file mixed beverage tax, and staff living in Mexico raise cross-border questions. Beyond the port, the statewide rules for business tax returns, personal tax returns, sales and use tax, bookkeeping, tax planning, back taxes and cross-border matters are on our Texas pages, starting from the Texas overview.
Send BOMCAS a few lines about your Laredo fleet, brokerage, store or family and we will reply with a first step and a list of records for a quote. Write through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Our other Laredo services are listed on the Laredo overview. The information here is general and not advice for your business or family.