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Trucker Taxes Discuss taxes specifically related to truckers and the trucking industry here. Owner Operators have some hard decisions when it comes to tax time, but so do company truck drivers. Give us your hints here! STOP Uncle Sam from ravaging your wallet.

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Old 05.29.2009
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hiring a co-driver

hello everyone i'm an owner operator and was wanting to hire someone to drive with me. Can i hire them as a contractor 1099 or do they have to be an employee. I know full well that alot of people on here have gone back and forth with this issue. I guess the state you live in matters to. If you dont have the answer whom could i ask to get a sure answer. Please give me some facts not just opinions. I don"t think it would be worth it for myself or the other person if i had to take them on as regular employee.
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Old 06.29.2009
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Let me ask you a question,, How you answer this will be your answer to your own question.

You're an Owner Operator. You're probably Leased on with a Trucking Company?
You sign a Lease Contract , stating you are a Independant Contractor.

So they give you work, and tell you where to go ? And when to pick it up and when to deliver it?


Now, can you not do the same if you get yourself a driver to help with your work?

At the end of the year,, the Company gives you a 1099.


You can also do the same,, making up a "SubContractor" Lease.
There are SubContractors working in Every State.
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Old 08.15.2009
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I would say 1099 2 but I also want to know how much should they be payed?
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Old 08.22.2009
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Quote:
Originally Posted by DoubleDear View Post
Let me ask you a question,, How you answer this will be your answer to your own question.

You're an Owner Operator. You're probably Leased on with a Trucking Company?
You sign a Lease Contract , stating you are a Independant Contractor.

So they give you work, and tell you where to go ? And when to pick it up and when to deliver it?


Now, can you not do the same if you get yourself a driver to help with your work?

At the end of the year,, the Company gives you a 1099.


You can also do the same,, making up a "SubContractor" Lease.
There are SubContractors working in Every State.

I have to disagree, as a lease operator you have the option to turn down a load. On the IRS website there will be a question list that will determine if a person is eligible to be 1099 or W2. A co-driver would be an employee. You might get away with paying under a 1099, if you don't; ouch!

But, have seen where the person claimed that they thought the company was withholding taxes, and the IRS agreeing. They get the gross, the IRS calculates the tax, you pay tax, interest, penalties. Understand nonpayment of withholding to the IRS is a nonnegotiable debt, and never gets reduced or goes away. It is an enduring obligation.

The rules for 1099 and W2 employee are very clear, the questions easy, and well tested in court.
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Old 08.22.2009
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Quote:
Originally Posted by Pawnd View Post
I have to disagree, as a lease operator you have the option to turn down a load. On the IRS website there will be a question list that will determine if a person is eligible to be 1099 or W2. A co-driver would be an employee. You might get away with paying under a 1099, if you don't; ouch!

But, have seen where the person claimed that they thought the company was withholding taxes, and the IRS agreeing. They get the gross, the IRS calculates the tax, you pay tax, interest, penalties. Understand nonpayment of withholding to the IRS is a nonnegotiable debt, and never gets reduced or goes away. It is an enduring obligation.

The rules for 1099 and W2 employee are very clear, the questions easy, and well tested in court.
I have posted the links to the IRS many times in the past. There are many that will continue to do this.

Consider as well, the person you hire, slips and falls getting out of the truck. Guess what, Workmen's compensations, ever heard of it?
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Old 08.26.2009
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Quote:
But, have seen where the person claimed that they thought? the company was withholding taxes,
They thought? Get real! How dumb can they be?

And while you're leased to a trucking company as an " Independant Contractor". And You slip and fall..,, Who's going to pay for you?

That is why You have a co-driver sign an " Independant Sub Contractor" contract.

That relieves you of responsibility too.

And a co-driver signing an Independant sub contractor, gives them the right to also say they don't want to do this run.


I have done Marketing and Merchandising work on the side, for many years. Every single company had me sign an Independant contractor, contract, even though they told me where , when and how long to work. I don't know of one marketing company that doesn't use an Independant contractor contract.

Trucking companies are not the only industry that does this. There are many , many types of jobs who uses the Independant contractor list.
Are they all going to run to the IRS and say? "I'm an employee ! "

There are many trucking companies that won't let a driver turn down a run. Been there and done it.

Last edited by DoubleDear; 08.27.2009 at 12.13 AM..
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Old 08.27.2009
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Quote:
Originally Posted by DoubleDear View Post
They thought? Get real! How dumb can they be?

They aren't being dumb.

And while you're leased to a trucking company as an " Independant Contractor". And You slip and fall..,, Who's going to pay for you?

This is a workers comp issue and will depend on the state where the injury occurred, and that particular states laws. If the company did not verify OIA coverage, or WC coverage, it can and will pass through up the chain. As an owner of a vehicle in PA the PIP coverage will be first coverage used.

That is why You have a co-driver sign an " Independant Sub Contractor" contract.

The paper is worthless, it is an illegal contract.

That relieves you of responsibility too.

See above

And a co-driver signing an Independant sub contractor, gives them the right to also say they don't want to do this run.

Really and you will go back to California and pick them up for the next run???

I have done Marketing and Merchandising work on the side, for many years. Every single company had me sign an Independant contractor, contract, even though they told me where , when and how long to work. I don't know of one marketing company that doesn't use an Independant contractor contract.

Does not make it legal. Many do it in construction as well, and many have paid the price when caught.

Trucking companies are not the only industry that does this. There are many , many types of jobs who uses the Independant contractor list.
Are they all going to run to the IRS and say? "I'm an employee ! "

There are many trucking companies that won't let a driver turn down a run. Been there and done it.
People speed, roll through stop signs and lights, do drugs, cheat on taxes, violate HOS, and the list goes on and on. It is kind of the American way. Run the edge, ignore laws an regulations that you think are wrong or unfair.

It does not make it right or legal. If a trucking company will not allow you the right to turn down any runs, ever. . . you become an employee. They run a very thin line, and it will depend on the mood of the auditing agents what gets made of it.

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Old 09.12.2009
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So can anyone give me the link to what specifially seperates an employee and contractor
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Old 1 Week Ago
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So can anyone give me the link to what specifially seperates an employee and contractor
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