1 Truck to 3 Trucks Overnight!!!!!!!

Be careful on the 1099 ing. It is not legal with the state not to pay ssi on your employees,state and fed taxes need to be deducted from each driver and you have to have workmens comp on them,if they get hurt and claim injuries you will pay all their medical bills and more,you can be fined by feds and state thousands per day for not having this,you cannot force a driver to be 1099'd at the end of the year,even if you make them sign a contract saying they will pay all taxes and ssi. If you are providing the loads,vehicle to haul the loads and that driver is not leasing or buying that equipment from you,in the eyes of the irs and states,you are fully responsible for workmens comp,payroll deductions on ssi,withholding all state and federal taxes.If you 1099 that driver he can turn you into the state,irs and you can be forced to pay all the taxes plus fines for not having workmens comp,even if there wasn't a claim. If you provide said equipment,even if its a hand shovel you can't say he is selfemployed,unless that driver or person is using his own equipment or has a written lease for said equipment. Just a word to the wise on this. Some of my friends and emploers have found this out the hard way.

 

First of all, you should know that "1099-ing" an employee is illegal, and opens up the Company and employee to stiff penalties and fines, regardless if the employee agrees to this arrangement or not.

 

Not a good way to start a business,I second that,illegal as all heck,if it was legal,everyone would be doing it.

 

Yes,I understandyou are just trying to get it off to a good start. The worst thing that could happen could shut you down forever,if a driver gets hurt or kills someone,it really needs to be set up right,personally I would join ooida and I believe they have all the answers for you about the legal means to run your business,they have sued and won many truth and leasing cases all over this country and won many cases for self employed not legally self employed,as you were describing,different states have different rules,but drivers need to have some kind of insurance to cover their injuries if there are any. The irs has all the rules for starting your own business legally.Like I said,a driver cannot be a self employed contractor driving your truck unless he has a valid truth in leasing written signed contract,desscribing all of the insurance,liabilities of that driver on responsibilities such as,who pays in a property damage case,injury case,etc.cargo damage ,car truck collisions,hitting a bridge,worst case scenerio,your driver could be responsible for all debts if he has 1099'd himself as a driver for you,if you write out a lease,you need to see that he has all the angles covered.It is really complicated to put all your trust into an accountant without a framework from the irs,states requirements etc. I feel in the end you will be doing the right thing,best of luck to you.

 

hey I know what you mean about getting info. we have ooida and their legal and and info dept. are a wealth if good advice and it didn't cost a thing. sometimes they will stay on the phone for an hour making sure you understand all the options and not once did they try to sell me anything. just thought I'd let you know my experience.

 

I would suggest going to the www.irs.gov and downloading publication 15.
Page 7 discusses what is considered an employee.

Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done.

This is an area that gets employers into problems especially after an employee leaves. The employee may want to file for unemployment. UC then starts looking into the issue.

Also, if driver were to get hurt, you would be held responsible through workmen's comp. Alot of companies try to do the 1099 to get by this. You control how, amount to earn, when to deliver, equipment to use.

 

Jcb,I commend you for accepting our constructive critisism,I also believe since you have insurance on your new drivers that is alot more than I can say for some other employers I have seen and become to know thru the years.Again,wish you all the best and your new drivers. The bennies will come later when they perform for you,and help make your venture a success.