1099 FedEx for Contractor?

Several companies will hire you with the gap in driving. Might not be what you really want, but it's work until you find that IT job.

Schneider Bulk
Pride Transport
Big-M Transportation
Paschall Truck Lines
Super Service
Western Express

Submit online apps. and you'll probably get 2 or 3 job offers from this list. Don't be surprised if you start getting job offers within a few hours.

 

As far as I am told, its illegal for them to pay on a 1099.

Let the flames ensue . . .

And I do an almost identical job as FedEx for 50% more per mile plus accessory pay - they're cheap.

 

Oh please ... it isn't illegal.

It all depends on how the contractor is treated, if you micromanage the person, then they are an employee but if they are treated as a professional driver who makes their own decisions, then they are contractors.

The only reason why the IRS is even involved is to make sure that the taxes are paid, too many 1099 people don't pay their taxes.


To the OP, the entire contractor thing is simple, you do X work for X pay. The best situation and it should be the only one is that an actual contract is used to define who does what, how things are paid and when. Too many get into the expedite business as drivers without a contract and then poof!! they are screwed.

 

It's illegal.

 

Read this sometime.


http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee


http://art.mt.gov/artists/IRS_20pt_Checklist_ Independent_Contractor.pdf

 

This 1099 thing is as bad as people thinking they can claim Head of Household when they live in the same house with their spouse.

 

I've read those a few times and it still doesn't matter. I've been through this issue with the IRS and the DoL a couple times, the IRS in my audit said "we don't care what the guy does, but we care how the relationship works because we care only about the taxes". The ruling from them on this is the same as I stated and it came down to if you micromanage the driver as to remove their ability to make judgements that he is qualified to do (CDL and training) while on the road or not allow him to make decisions to complete the task, they are employees. The example the IRS investigator used is this, If I tell my driver what loads to take, that's a grey area but IF I tell him what loads to take, tell him exactly how I want it routed, how to secure the load and what schedule he is to run it on, that is where it steps into the employee area.

In this industry, like IT, there is a lot of latitude to these rules and no way that it is illegal to use a 1099 to conduct business. What is the problem is that people don't seem to understand how it works or why they have to pay taxes. I for one can see if this is made impossible to have people in trucks as contractors, then this industry as a whole will be in trouble for a while and beside it would also effect a lot of other things like building trades and IT.

 

So, you like some others have been exposed to one location or one auditor. However, I have dealt with this over many years, states and different auditors.

I have seen them come in and fine the companies heavily for this. It is not just the trucking industry that has this problem.

In fact, during my recent audit, where I own the truck, have a valid lease and pay for the fuel, insurance and etc, the IRS agent wanted to change me to an employee.

Why in the world do you think FEDEX now requires their contractors to be corporations?