I'm looking to hire a driver for my landstar truck, pay them 50% of revenue, and have them book their own loads, pick their own hometime, pretty much do whatever they want. "Dont bother me unless the truck broke down" kinda thing.
Do I still have to pay them with W2, even though I don't control when and how they work?
Or can I just direct transfer them their percentage after each load and hit them with that 1099 at the end of the year?
1099 legality for driver that picks their own loads and paid % of load?
Discussion in 'Trucker Taxes and Truck Financing' started by PermanentTourist, Apr 8, 2020.
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roshea, 12 ga, truckdriver31 and 1 other person Thank this.
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After fuel and maint your 50% won't be worth much .....
truckdriver31 Thanks this. -
That said IRS has published a guide to help determine that. The main stickler would be you own the tools of the trade (the truck). But that's offset bu you giving him control to choose his loads and such.
Also, make sure you are running under a contract. No matter what, even if everything is ok, without a contract spelling out the relationship, it's not a valid 1099.
Here is IRS's website on Employee vs. IC. Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service
Here is a pdf of the 20 point checklist. https://www.oregon.gov/ODA/shared/D...ces/20FactorTestforIndependentContractors.pdfblacklabel, Studebaker Hawk, Eddiec and 2 others Thank this. -
I'm not trying to avoid paying the payroll social security tax, I would gladly just pay it to the feds as a lump sum at the end of the year. Just hate to have to run all the withholding math every time I pay the driver.truckdriver31 Thanks this. -
Rideandrepair, Coffey, MTN Boomer and 1 other person Thank this.
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Rideandrepair and truckdriver31 Thank this.
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Rideandrepair, baha and truckdriver31 Thank this.
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dunchues, Studebaker Hawk, truckdriver31 and 1 other person Thank this.
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