I've been a yard hostler for a big grocery company for several years. Due to relocation of a warehouse, I will be laid off for several months. I have tax questions about an offer presented to me and would appreciate advice.

An O/O who hauls product between our company's warehouses has offered me an opportunity to run a second truck he owns while I am laid off. He works as an independent contractor for a trucking company that hauls my company's product under contract (hopefully that made sense.)

My question is this...He wants to split the second truck's income 60/40. He pays all expenses, fuel, maintanence, etc. from his 60%. The hitch is he wants the truck's check to come to me from the trucking company, then I would pay him his share. I would get a 1099 on the full amount the company paid the truck. I assume he wants to do this so he doesn't have to treat me as his employee for tax & insurance purposes.

Is this arrangement legal? Am I setting myself up for huge tax problems? Is there a way to report taxes/claim expenses that would legally make this arrangement result in the income I would expect from receiving 40% of what the truck earns? I would expect to be doing this for around six months if that makes any difference.

Thanks in advance for the advice.

Sure it could be legal . You just send him a 1099 for the 60% you paid him . I doubt he'd go for that though.
But it goes beyond that . If the checks are paid to you for the haul you'll be in big trouble if you don't have MC authority . If you are getting 100% of the freight charge and operating the truck you are the carrier . You will also be employing yourself as a driver and need a complete driver's file with copies of MVR , D.O.T. long form physical , inquiries to past employers , etc. as well as proof of participating in a random drug pool . There's more but that should give you an idea of what is involved .

What happens if you are hurt?
Does he tell you what and where to work?
Can you take days off?

You are basically an employee and such arrangements are not in compliance with the IRS regulations.

Thanks for the replies so far. I have all the stuff for the driver file, including random test records. Work, hours and schedules would be at the direction of the freight company, not the O/O providing the truck. I am mainly interested in the tax issues and whether there is a legal way to separate the 60% of income from the 1099 reported to me that I would be paying back to him for use of the truck.

Yeah , like I said . Open a business account . Put the check from the company directly in the account . Pay everything out of that account with a check or debit card for the account . This includes his 60% . Write truck rental on the check where it says purpose . Be best to have him right out a rental agreement saying rental is 60% of gross revenue and that rental includes fuel , repairs , etc. . Always have something in writing .