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.

  1. dibstr

    dibstr Road Train Member

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    Go to Irs.gov and either download or fill out a form SS-8. The IRS will make the determination for you.
     
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  3. truckdriver31

    truckdriver31 Road Train Member

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    so in other words. you are planning to lease the truck to him. why not just do 25-30% of gross and 1099. do screw them driver
     
  4. PermanentTourist

    PermanentTourist Heavy Load Member

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    I'm not planning to lease the truck, just to do a profit sharing on the business. Truck stays in my name and I still pay for all the repairs.

    50% of revenue comes out to about 30% of gross linehaul under landstar.

    And not sure what you mean by the last part, but I'm certainly not trying to screw anybody. I want to offer the kind of terms that I myself wouldn't mind driving under if I was in between trucks and looking to work for someone else for awhile.
     
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  5. truckdriver31

    truckdriver31 Road Train Member

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    plus you dont split revenue in half and you pay all the expenses. just pay 25-30% of linehaul. you keep fsc.(your paying for fuel)1099 the driver and be done. i see this scam all the time with them expedited straight trucks and sprinters.
     
  6. PermanentTourist

    PermanentTourist Heavy Load Member

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    Hmm... I'm still very unclear about what you are trying to say, and whether you approve or disapprove of my compensation terms.
     
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  7. truckdriver31

    truckdriver31 Road Train Member

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    im just saying. why not 25-30% of linehaul and pay 1099 and call it a day. dont pay fsc unless he is buying the fuel. so my question is this. why do it different whats to gain
     
  8. PermanentTourist

    PermanentTourist Heavy Load Member

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    Re: 50% of revenue vs 30% of linehaul - Under Landstar it is the same thing basically, since Landstar takes 35% of linehaul. I was just trying to present it as splitting evenly the actual money that the truck makes, seemed more fair that way.

    As far as 1099, the whole issue is that I've been told it may be illegal.
     
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  9. TheLoadOut

    TheLoadOut Road Train Member

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    Couldn't one argue the tools of the trade is a cdl and not so much the truck? A doctor can't perform without a license, a lawyer can't represent without a license, a plumber can't plumb without a license, a contractor can't build without a license, and a truck driver can't drive without a license. Without that one tool, being a license, none of them could do their job.
     
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  10. ZVar

    ZVar Road Train Member

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    While a CDL is a tool of the trade, it's not the only one. The truck is also a tool. You can use the exact same argument for the truck. i.e. without that one tool (the truck) none can do their job. I mean a mechanic would not have only sockets, and because of that say wrenches are not tools either....
     
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  11. PermanentTourist

    PermanentTourist Heavy Load Member

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    My mom is a software QA engineer, she tests medical devices. She is an independent contractor. She goes to work like everyone else and works in a company office and uses company computers.

    The only difference is she doesn't get benefits and vacation time.
     
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