Trucking Jobs New Driver Jobs Flatbed Jobs Tanker Jobs Refrigerated Jobs Auto Hauler Jobs
Results 1 to 8 of 8
  1. #1
    Road Train Member aiwiron's Avatar
    Member Since
    Aug 2011
    Location
    Sunny Tampa Florida
    Trucker?
    34 Years
    Posts
    5,927
    Thanks
    7,965
    Thanked: 5,191 Times

    1099 pay and new drivers

    I have read a couple ads for drivers and they say you will be paid with a 1099 at the end of the year, it is illegal and also you will not have any recourse as a employee for workman's comp if you are injured on the job.

    No medicaid or social security withheld is also illegal and to be honest you will need it if you live long enough, if you live in a state that has state unemployment, well you can forget that also.



    So, take it as you want but driving for someone that is shady and pulls a 1099 on you is taking advantage and is also breaking state and federal laws.

    http://www.irs.gov/businesses/small/...=99921,00.html

  2. #2
    Bobtail Member sailnaked's Avatar
    Member Since
    Mar 2012
    Trucker?
    5 Years
    Age
    52
    Posts
    38
    Thanks
    31
    Thanked: 12 Times
    Using an 1099 form is for hiring an "independent contractor" so this could apply to O/O, however if the driver is going to drive the company truck and insured under company insurance than he would be considered a regular employee and cannot use 1099.

  3. The Following User Says Thank You to sailnaked For This Useful Post:


  4. #3
    Banned or Retired Gizmo_Man's Avatar
    Member Since
    Aug 2011
    Location
    Hardly around
    Trucker?
    25 Years
    Posts
    1,226
    Thanks
    697
    Thanked: 589 Times
    Quote Originally Posted by aiwiron View Post
    I have read a couple ads for drivers and they say you will be paid with a 1099 at the end of the year, it is illegal and also you will not have any recourse as a employee for workman's comp if you are injured on the job.
    What do you mean it is illegal??

    IT IS AS LEGAL as can be. YOU as the 1099 contractor, MUST pay your OWN medical, SS, and in some instances, workmans comp.

    No medicaid or social security withheld is also illegal and to be honest you will need it if you live long enough, if you live in a state that has state unemployment, well you can forget that also.
    Wrong again, YOU as the 1099 "contractor" WILL BE responsible for such things. Again, NOTHING illegal about being paid on a 1099.

    So, take it as you want but driving for someone that is shady and pulls a 1099 on you is taking advantage and is also breaking state and federal laws.
    No laws are being broken, if done correctly. it EVEN SAID SO, in the article you provided!!

    "Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors."
    http://www.irs.gov/businesses/small/...=99921,00.html[/QUOTE]

  5. #4
    Road Train Member aiwiron's Avatar
    Member Since
    Aug 2011
    Location
    Sunny Tampa Florida
    Trucker?
    34 Years
    Posts
    5,927
    Thanks
    7,965
    Thanked: 5,191 Times
    Quote Originally Posted by Gizmo_Man View Post
    What do you mean it is illegal??

    IT IS AS LEGAL as can be. YOU as the 1099 contractor, MUST pay your OWN medical, SS, and in some instances, workmans comp.



    Wrong again, YOU as the 1099 "contractor" WILL BE responsible for such things. Again, NOTHING illegal about being paid on a 1099.



    No laws are being broken, if done correctly.

    http://www.irs.gov/businesses/small/...=99921,00.html
    [/QUOTE]

    If a driver is hired by a owner operator as many are under the 1099 the hired driver is a employee, no matter how a company pays a driver they are a employee of the company.

    http://www.irs.gov/businesses/small/...=99921,00.html

    http://www.irs.gov/compliance/enforc...106704,00.html

    Excerpt from the link:

    Evasion of Employment Taxes Carries a Price

    Evading employment taxes can have serious consequences for employers and the employees. Employers may be subject to criminal and civil sanctions for willfully failing to pay employment taxes. Employees suffer because they may not qualify for social security, Medicare, or unemployment benefits when employers do not report or pay employment and unemployment taxes. Consequently, taxes withheld and paid by compliant employers are used to pay the refunds and social security benefits of employees whose employers did not pay the withheld taxes.

    My comments:

    Anyone that pays a driver on a 1099 is either criminal, stupid, a bad employer or a combination thereof.

  6. The Following User Says Thank You to aiwiron For This Useful Post:


  7. #5
    Banned or Retired
    Member Since
    Jul 2008
    Location
    Owensboro , KY
    Trucker?
    35 Years
    Posts
    12,815
    Thanks
    1,966
    Thanked: 6,003 Times

    Train

    The majority of drivers driving expedite trucks for fleet owners are 1099 I/C's . It has been that way for years .

  8. The Following User Says Thank You to RickG For This Useful Post:


  9. #6
    Heavy Load Member
    Member Since
    Jan 2008
    Location
    Indiana
    Trucker?
    No
    Age
    30
    Posts
    714
    Thanks
    674
    Thanked: 1,744 Times
    1099 is illegal if they are holding you to the exact same standards as they do company drivers when it comes to actions and clothing.

    Fed Ex just got burned on this within the last few years.

    lots of info here and it provides examples of companies getting burned and the government trying to stop it(mainly because it screws them out of tax cash)

  10. The Following User Says Thank You to Drachen For This Useful Post:


  11. #7
    Medium Load Member tootie04's Avatar
    Member Since
    Oct 2008
    Location
    Tucson AZ
    Trucker?
    Trucker's Significant Other
    Posts
    424
    Thanks
    46
    Thanked: 131 Times
    Been there and done that...IRS says if you bring your truck to the job and lease on then you are a contractor...BUT if you are driving their truck and trailer then you are an employee. We were audited several years ago and the guy we were pulling for got into trouble with the IRS for not paying all those taxes and all.

  12. #8
    Road Train Member wichris's Avatar
    Member Since
    Jan 2011
    Trucker?
    No Answer
    Posts
    1,171
    Thanks
    82
    Thanked: 508 Times
    You know you are a true 1099 contractor when you load in FL going to CA and you go through Chicago to get there. And no one cares. If you can't do that you're an employee.

  13. The Following User Says Thank You to wichris For This Useful Post:


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •