TUCP

The Concept

The TUCP concept was first used in 1948 by companies in the Timber industry.  Woodsmen were paid separately for the use of their chainsaws.  Within the last decade other industries have had the opportunity to use this concept based on IRS Revenue Ruling 68-624. The TUCP separates the value and expense of tools from wages.  Internal Revenue Code Section 62(c) states that payroll taxes do not apply to owned tool reimbursement. After all, a heavy duty wrench, or any other tool for that matter, will never have the need for Social Security, Medicare or Worker's Compensation benefits.

What is TUCP

Tool Use Compensation Plan?

TUCP pays your technicians a tool and equipment use reimbursement separate from their wages.  This results in lowered payroll costs to your company and provides your employees with an increase in their take-home pay.

How Would You Benefit From It?
Transforms Overhead to Bottom Line Profits.
Increases Your Employees Take Home Pay Without Giving Them a Raise.
Complies With IRS Guidelines.
Administration is as Simple as Filling Out a Time Card and Providing Receipts for Tool Expenses.

This program is designed to comply with all Federal and State Tax Regulatory guidelines. 

TUCP makes it easy to implement and manages the plan for you and your employees.

Your Savings Could Amount to Thousands of Dollars Annually!

TUCP Qualifications Home What I can do References