SE Tax owed on Workers Compensation Insurance Premium ?

You're mixing apples and oranges.

 

Hire a good cpa and don't ask those kind of questions here. Oh, you'll get an answer, but you know......

 

Unless the carrier doesn't own the truck, you are an employee. Your carrier should be paying 1/2 the se tax and paying for workers' comp.

 

Well you are wrong about workers comp.

SP has nothing to do with it.

Each driver I have is a 1099 and they are required to have workers comp insurance. A few have filed claims and gottened payouts without issue. Only a couple of the teams are inc because they are h/w and they enjoy the tax benefits.

And to answer your question, this is a write off of your gross. It is a requirement to do business as would be things like uncompensated safety clothing and tools. After your write offs, you have an adjusted income where the SE is applied.

But it begs a couple questions.

One is why an llc to cover this issue.

Second is are you driving for an owner or the company?

If you driving for the company, bare in mind that you may be an employee and not a contracted resource.

 

Some places, it is called Occupational Accident insurance and not worker's comp. OCCACC will pay even if a sole proprietor. The premiums are part of operating expenses and deductible, which means, before income and FICA taxes. It depends on insurance carrier and state requirement as to how much it costs. Mine is $136 a month.