Originally Posted by BoyWander

So I may be starting working for this guy that has 6 or 7 trucks.

He wants to pay me with a 1099 as an IC. I told him I wanted to be paid as an employee, and he goes and talks to his accountant, then comes back a few days later and tells me it's not going to work out paying me as an employee.

We agreed on 38cpm, loaded miles only, except deadhead miles are paid over 60 miles of deadhead. He says he can keep me plenty busy, 3,500 miles a week every week if I had wanted it.

I read another thread on this forum about this, and seems like the arguments were mostly evenly split for and against.

Just a couple of questions -

1) if I get involved in an accident, does his truck insurance still cover any of my injuries as a result of the accident? He obv does not have workman's comp. and he admits this.

2) Could I still deduct the standard per diem of ($55? $85?) for every day I'm out on the road when I file my taxes at the end of the year?

3) Would I be paying the same amount of taxes whether I'm paid as an employee or contractor?

Thanks for all your future responses.

1. Not sure, not my area.
2. Yep. What ever that is this year.
3. Nope. You get to foot the entire bill. Your "boss" doesn't want to contribute his portion, hence the 1099. On a w-2 Employee, the boss pays 7.5 %, you pay 7.5%. In the1099 scenario--you pay it all.

Originally Posted by MNdriver

Your self employment tax is 15% not 7.5%.

Right, in an actual employee/employer situation, you split that amount.
Sorry, when the IRS takes a look at this situation, someone is gonna bet bit in the behind. It's not a legal scenario. He checked w/ his accountant. NOT his lawyer. The accountant told him what was best for his bottom line (and..if he paid ONE guy as a W2, and not the rest, that's gonna raise red flags all over the place. Which would be why the accountant told him it was a no-go.) Who buys the fuel? Who pays the insurance on the truck? Who's paying the OCC/ACC insurance? If the answers to the first 2 are HIM, and the answer to the last is NO ONE, you are getting bent over, w/ no lube.