Contractor vs employee?

You own the truck? Dedicated lane might imply you make their schedule. They are employees.

 

Well if you want to get friendly with the IRS go for it.

 

Just pay em like an employee...its what they are....

You'll save more money doing a 1099 or w9 but generally be looked at as an ###### by potential drivers.

 

The 1099 done perfectly correctly will make both the driver and owner more money in there pocket at the end. But if you have no idea how to do it you will just have to give that 33% to the government you could have kept as profit.

 

You must know something Fed Ex didn't know. I'd like to know how you think it could be done "perfectly correctly" in order to pull it off.

 

FedEx is not one guy with an extra truck. So your comparison is not even close. I am not going to explain how to run a business to someone over the Internet. Just ask how a lease that hauls that companies freight is legal.

 

1099 is the best (easiest) option but you need to work with a good CPA to make sure you have all your ducks in a row, otherwise you're asking for trouble and walking on thin ice if the contract is not worded right and the business and driver relationship is not conducted right.

Also, you need to pay considerably more to contractors then you might pay to employees. Nobody is going to work 1099 for cheap if they know what that entails from a benefit loss and other tax liabilities they must incur.

 

Line up about 100 drivers, as each team returns from their run, fire them and don't pay them anything so you won't have any payroll and can keep all that money yourself. Next run up, send out a new team and Boom, Lots of profit.
Just have to watch your back from now on.

I know it is every mans dream to make a good living, but why put your living in jeopardy by trying to finagle the tax laws.
If you send them out in your truck, tell them when, where, and what to do, they are employee's. Pay them accordingly and save yourself a lot of headaches down the road.