NAC706.822. Accounts for shop and garage expense.

The following accounts must be used by each company maintaining a shop or facilities for the repair and maintenance of company taxicabs:

     1. The account for supervisors’ salaries (shop and garage) includes the salaries incurred in the supervision and direction of shop and garage activities.

     2. The account for wages (shop and garage) includes the salaries and wages of shop and garage employees for the repair of company taxicabs and facilities, except for the salaries and wages of shop and garage supervisors which are included in the account described in subsection 1.

     3. The account for vacation pay (shop and garage) includes all vacation pay paid to shop and garage personnel, both supervisors and nonsupervisors.

     4. The account for payroll taxes (shop and garage) includes all payroll taxes of shop employees, both supervisors and nonsupervisors, including, but not limited to, FICA, FUTA, NUC and SIIS.

     5. The account for payroll benefits (shop and garage) includes the costs incurred by the company for welfare and pension benefits of all its shop and garage employees.

     6. The account for contract services (shop and garage) includes all costs incurred as a result of utilizing outside labor.

     7. The account for depreciation (shop and garage equipment) includes the amount of depreciation applicable to all shop and garage equipment included in the account for shop and garage equipment described in NAC 706.732. This account also includes depreciation applicable to the account for other automotive equipment described in NAC 706.741, when such cars are used exclusively in connection with shop work.

     8. The account for depreciation (fuel conversion plant) includes depreciation applicable to the use of any fuel conversion plant as included in the account for fuel conversion plants described in NAC 706.753.

     9. The account for equipment rental (shop and garage) includes costs incurred by the company in the rental or leasing of shop and garage equipment used and useful to the company. This account must be maintained in such manner as will permit ready identification, analysis and verification of all facts relevant to each item rented or leased, the costs of which have been included.

     10. The insurance account for shop and garage includes the cost of insurance specifically for the coverage of shop and garage facilities.

     11. The account for repairs and maintenance of shop and garage equipment includes all costs incurred in the maintenance and repair of shop and garage equipment and tools, other than internal labor costs included in the accounts described in subsections 1 and 2. This account also includes the costs incurred in the maintenance and repair of automotive equipment, other than taxicabs when that equipment is used exclusively in connection with shop work. This account also includes the cost of hand or portable tools which are easily lost or stolen, which have a value of $100 or less, or have a short life.

     12. The account for miscellaneous shop and garage expenses includes shop and garage costs not provided for in any of the foregoing accounts such as uniform charges, laundry, cleaning rags and solvent for washing parts. This account must be maintained in such manner as will permit ready identification, analysis and verification of all facts relevant to each class of items included. Appropriate subaccounts may be employed for this purpose.

     13. The telephone account includes telephone expense applicable or attributable to maintaining shop and garage facilities.

     14. The account for transferred internal costs (shop and garage) includes the internal costs transferred from the various other functional divisions to shop and garage expense. Costs transferred to this account must be either actual or on a percentage basis provided such percentage is arrived at through periodic special studies. The use of arbitrary percentages or amounts transferred to this account is not permitted.

     [Taxicab Auth., Uniform System of Accounts Reg. §§ 701-795, eff. 12-24-70; A 11-16-79]—(NAC A 10-13-88)