1099 but Don't Own Equipment

Workers who perform most of their work using company-provided equipment, tools, and materials are more likely to be considered employees. Work largely done using independently obtained supplies or tools supports an independent contractor finding.
Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service

 

BS, unless there is two major things, they are slaves to the carrier they are working for.

The first is a refusal of work without retaliation - PERIOD!

If a 1099 is dispatched and doesn't want to work that day or take that run, they do not have to legally. If the carrier fires them, then they have a case against them.

The second is being dispatched in such a manner that it forces the driver into a situation where they can not move after that, even on the company dime. You can't park a driver out in BFE and tell them to wait for a load - PERIOD!

An added problem for a carrier is this little fact, you can't ding them for the abandonment of equipment because they are contractors which means if it isn't spelled out in the contract or if there is no contract, then doing so on their DAC/Hireright report means you just made them an employee.

Of course, there is another - equipment safety. If the driver says it needs new tires and he judges the tires as bad, then the carrier is obligated to make sure that truck has new tires.

ANYTHING OUTSIDE OF THESE SIMPLE THINGS MAKES THE DRIVER AN EMPLOYEE - PERIOD!

If you do not believe me, get your lawyer to spell out the limitations, he/she will give you the guidelines based on court cases that made employees out of a lot of 1099 drivers.

 

Your last two sentences are mutually exclusive. You still pay taxes on 1099

 

I swear the public education is just gone to crap or u didn't learn basic math in 5th grade.

$100,000 a year that's 15% tax on 1099 about $15,000 u have to paid on taxes

$100,000 on W2 is 7% which means only $7000 in taxes

 

You missed his last sentence about not filing a tax return.

 

Which didn't make sense to me after he said get a good accountant.

 

The “good” accountant knows how to “hide” the money therefore no tax return is needed……

 

Tax returns are always needed, they are a requirement by law.

Too many people are too stupid to believe an accountant, especially in this industry.

If the accountant or tax preparer (which is worst than anything else) is not an Enrolled Agent, is not part of a firm, and doesn't have the means to do the right work for you, then you will get screwed.

All of this isn't about keeping every penny you earn, it is all about keeping out of trouble because the IRS has the law on their side, they have the investigators and deep pockets to screw with people at all levels of income.

Remember they are NOT stupid, but many truckers are.

 

I should have used more “ “ to show my sarcasm

 

After I posted it, I realized what you said, but too late, I didn't catch it and wasn't going to edit it because I was and still am too ******* tired from having trucking owner fun.