You are confusing/mixing terms. An O/O (owner/operator), owns or is buying his truck through an outside financial group. A L/O (lease/operator) is one who is leasing his truck through a carrier, like Swift, England, Prime.
The regulation is aimed at defining the terms of settlement when someone is "leased onto" an individual carrier. It does not deal with the payment of moving freight by an outside broker or agent. This regulation is specific to company leases...
Just as many carriers use brokers to find freight for their trucks, these carriers settle the monies due them through the contract with the broker/agent, not through the FMCSA Regs.
Try reading, it will clarify this is dealing with equipment through a carrier.
Any more answers to questions not asked? Didn't think so!
Now, do you know the difference between and O/O and an Independent? The correct question would be: Is there a difference between an O/O and an Independent? The answer is could be...if the O/O is "leased onto" a specific carrier he is an O/O...however if an O/O is "Independent of any specific carrier he is an "Independent O/O"! Do YOU see the difference? Let me confuse you more...I could go down and lease a truck from Penske or Schneider, and be an Independent Lease Operator...major differences in the grouping don't you think?
o/o not getting paid
Discussion in 'Ask An Owner Operator' started by 2hellandback, Jun 21, 2010.
Page 2 of 4
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
otherhalftw Thanks this.
-
O/Os don't have "Employers". Company drivers have "Employers". -
roxy
nice to see your alive and well
i have missed you to the point, dont give a #### if you like it attitude -
alive and well, Been keeping up at Andy's with another "personality". Have slpwkr or Deemer give you the link to our site, I can't do pm here, I don't have the required number of posts, here to do that. Bring Heavydude with ya. Be glad to have y'all and I think you would enjoy it.
-
An "Independent Contractor", per the IRS designation, must have autonomy to take freight from any source, not one single contracted agreement. So, by IRS and tax terminology, an O/O, contracted to one carrier is NOT an Independent Contractor...there are several class action suits presently in the court system today regarding this issue.
If you want to play semantics...you're playing on the wrong Forum...we here on TTR aren't your regular "dumb truckers" as many want to closet us. Learn your terminology and learn the regs before you criticize someone for asking a legitimate question!Native Dancer Thanks this. -
Well I can see that once again I have stumbled upon that internet phenomemon where the animal world has mingled with the horticultural world and produced a "Flower Pot Child".
Now, after a few decades in this business, I have learned to trust no internet or Truckstop Lunch Counter Legal Advisor's definitions of terms, as they usually have little or no knowlege in the actual wording of Federal Rules and Regulations.
If you would care to look up the Definition of "Independent Contractor" at the IRS website, you would find that your definition is not even close. Nor does the number of lawsuits filed validate your arguement.
Here are some excerpts, taken directly from the IRS website, used in determining the status of an employee or independent contractor:
Independent Contractor (Self-Employed) or Employee?
It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. If you are an independent contractor and hire or subcontract work to others, you will want to review the information in this section to determine whether individuals you hire are independent contractors (subcontractors) or employees.
Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be -
- An Independent Contractor
- An Employee (common-law employee)
- A Statutory Employee
- A Statutory Nonemployee
Common Law Rules
Facts that provide evidence of the degree of control and independence fall into three categories:- Behavorial: Does the company control or have the right to control what the worker does and how the worker does his or her job?
- Financial: Are the business aspects of the workers job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
- Type of relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.
Independent Contractor
People such as lawyers, contractors, subcontractors and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. However, whether such people are employees or independent contractors depends on the facts in each case.
The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.
Employee (Common-Law Employee)
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.
Statutory Employees
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute (statutory employees) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social Security and Medicare taxes, below.
- A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
- A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
- An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.
- A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyers business operation. The work performed for you must be the salesperson's principal business activity.
There are generally two categories of statutory nonemployees: direct sellers and licensed real estate agents. They are treated as self-employed for all Federal tax purposes, including income and employment taxes, if:
- Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked, and
- Their services are performed under a written contract providing that they will not be treated as employees for Federal tax purposes.
Nor would one assume that he is an Independent operating under his own authority, or pulling exempt commodities, in which case he would have been directed to filing against broker's bonds and collection agencies.
He stated o/o, which would lead one to believe he is leased to a carrier, running under their authority, which would have him appropriately referring to the FMCSA "Leasing Regulations", which apply.
I could care less about your "semantics". I do care about making sure the definition of his situation is correct, so he can be referred to the proper agency to remedy his situation.
You're length of time as a member of this forum and the number of posts you have typed, here, also hold no water with me, as that status and a dollar still won't buy a cup of coffee at most truckstops, anymore.
BTW, I see by your profile that you have been trucking all of 14 years! Rookie!!! 6.9 posts per day average? When do you work? -
As for the length of time one has been in this industry...so what...you think a person must put in years and years in order ton understand and follow rules and regulations? Or that it takes decades to be "informed" about an industry? Wrong on both counts...I can direct you to one "student" right now that knows more about the legal issues and rules and regs of this industry than probably you do after your "supposed 30 years"...by the way...there is no proof in the amount of time a poster declares to have been in this industry on this forum...just a blank to be filled in by the individual...no verification is asked or offered.
As to my 6.9 posts per day...it takes a whole 1 to 10 minutes to create a post....some 30 year truckers, typing with one finger could do the same...
You know my grandmother told me 50 years ago....when in an argument or discussion, the one that starts slinging insults or resorts to belittling his/her opponent, is usually without cognitive background or just slinging BS!
Post the link to your case with the IRS...because I know the rules and how to interpret them...we have shown you but you just can't be caught in the wrong I guess! -
Tried posting the links, this site doesn't allow it. Google "IRS definition of independent contractor", click on top link. It'll take you right there to the page I copied and pasted. Not hard to do, even for an old fart like me.
Maybe one should listen to their own advice!
"If you want to play semantics...you're playing on the wrong Forum...we here on TTR aren't your regular "dumb truckers" as many want to closet us. Learn your terminology and learn the regs before you criticize someone for asking a legitimate question!" -
BTW, The FMCSA Leasing Regs pertain to equipment as evidenced in this statement:
(a) Parties The lease shall be made between the authorized carrier and the owner of the equipment. The lease shall be signed by these parties or by their authorized representatives.
(b) Duration to be specific The lease shall specify the time and date or the circumstances on which the lease begins and ends. These times or circumstances shall coincide with the times for the giving of receipts required by 376.11(b).
(c) Exclusive possession and responsibilities (1) The lease shall provide that the authorized carrier lessee shall have exclusive possession, control, and use of the equipment for the duration of the lease. The lease shall further provide that the authorized carrier lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease.
(c)(2) Provision may be made in the lease for considering the authorized carrier lessee as the owner of the equipment for the purpose of subleasing it under these regulations to other authorized carriers during the lease.
No where do they address the driver, nor status of the driver.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 2 of 4