hiring a co-driver

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 would say 1099 2 but I also want to know how much should they be payed?

 

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?

 

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.

 

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.

 

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Enjoy

 

Thanks for info, I am also seeking to possibly hire someone, so I thank you for the access to that link!!!