How is this 1099 stuff legal?

How is anybody hiding income on 1099s is what I want to know. You do know that the company is still reporting every dime they paid their employee on 1099s or w2s the only difference is you can actually deduct what it costs you to earn your money the way it should be. I don't see what your big problem is it's just as easy to just not report w2 earnings as 1099s.

 

Have you ever ran a legitimate business with employees? Employees are a commodity in a very competitive market. These illegal 1099 outfits make it harder for a guy operating legally legitimate to attract qualified drivers. As a side effect they also help keep freight rates low because they have much cheaper labor costs. Its a double whammy. 1099 outfit pay 20% more while having 30 to 50% less in labor costs.

Triple whammy when you factor in that most of these 1099 outfits operate outside the hos and therefore can run freight even cheaper. Loads that legally should tire a truck up for the better part of two days and therefore should be charged for two days, they run in one and charge for one.

 

Who is running a two day load in one and charging for one not two? I've run a few I'm sure you would call a two day load in one and I don't charge any less. Maybe it's not actually a two day load, maybe the HOS need to change. No independent can actually just say "Well no I gotta have twenty cents a mile more" and actually get that I've tried it doesn't work. You want somebody to blame for cheap freight that goes straight to the folks who are running a couple thousand trucks and doing everything they can to cut their costs a penny a mile and be able to charge a little less. I suppose since I'm driving a kenworth that's older than 2000 you think I charge less than somebody with a newer truck does and drive way over hours and dont take care of it either.

 

Do some research. Those company's operating several thousand trucks have a much better rate per mile than the vast majority of independents.

I dont know you personally so i don't know if you pull cheap or not but I'm willing to give ya the benefit of the doubt that your kw that's only a few years older than my freightliner averages just as strong daily rate as i do. The problem is for everyone of us there is 99 other guys running beat up Columbia's and volvos willing to run the load 50 cpm less. They do this with the illegal 1099 junk by not having to provide healthcare and workmans comp and pay employer tax.

 

Yea and they can't afford to fix their clapped out rattletraps because of it. I dont know what yourr calling cheap freight but I get a little irritated if I'm not doing at least 1.75 for all miles and I'll just stay home for the week if I can't do 1.60.

 

Dude in this market there is no reason you should be running that low. I'm down in the black hole of Florida and turning down outbound freight paying just over 2 bucks. And that's after i give up 25%.

Load to truck volume is at historically high ratios. You can basically name your price this year.

 

Don’t steal the government hates competition.

 

Uhm no, and I can deduct everything. This fantasy world where 1099 guys report their income is laughable. And the notion that only a 1099 guy can deduct stuff is ignorant at best. Gee no one ever has more income than their 9-5 job huh?

You know full and #### well 50% or better are ghosts not paying anything. Not to mention the illegality of most of these outfits avoiding workmans comp, employer share of employment taxes, and driving rates right through the bottom of the barrel.


Now those that are leased on to a carrier with their own truck are half assed legitimate. Still a pretty big risk when they do your dispatching. And I know how sensitive and butt hurt folks get when you mention you earn more than they do once you figure in their expenses.

Let's see I had to pay taxes on 155,000 of total income to me last year. I managed to keep all but 92k sheltered. I am sure all you experts will explain how that happened being a lowly legal W-2 employee.

 

Yea I know its cheap but that's running hopper bottom the old man didn't think I'd do that good I'm looking at a job pulling cows instead that pays better.

 

Sure you can protect a good chunk of your income from a w2 a few different ways, but yes every company that pays there employees on 1099s is reporting what they pay I guarantee it else it shows up as profit on their end. The employee could not report what they were paid but you can not file taxes on a w2 too if you want to try and at some point you will be caught.