O/O’s what are you paying your driver

We pay 25% of the gross revenue including fsc with a floor of 55cpm.

We run 95% dedicated frieght , currently we are doing one week paid vacation and a Christmas bonus .....avg pay was between 72 and 80k a year with regular hometime ......on a w2

 

Paying on a 1099 means only 2 things. The comments already made cover the owner side of this form of paying employees. The 2nd is an employee who is happy because he thinks he is going to come out ahead with a 1099. NOT

 

One question to the op, and others if you like. How does your company handle per diem.? Mines in my check every week.

Ok. You all are owners and payers. Lets look at it from a employee side. Which is what I am.

I make 42% after tolls and fuel. I also get w-2ed. Beneies are offered. But I had my own going in and I'll have my own going out.
Now for the pro reasons of a 1099. 1) If you owe something like child support. And a garnishment. You can slip under the radar. Your not paying taxes. So they can't pull it just yet. 2) depending on the company its almost a garunted job. Like Carolina cargo. You might not like but you can get experience. 3) tornados and floods. 1099 is a contractor not a employee. Sorry boss, you have fun in fl, I'm not going. 4) more money now. 5) write off a such as clothes and tools.
Now the cons.
1) no insurance unless you self carry
2) its still the bosses truck, so they want you to do things there way.
3) are you really gonna save 40% of your income and pay quarterly?
4) garunted job. So your easily replaced.
5)if you gotta duck your child support. You don't need to work. You need to work things out with the ol'lady.

The main thing a company can do. Os make the employee feel like they are making a difference. No matter of I make 250.00 a week or 1500. Its all about respect. Respect me ill respect you and your equipment. Don't lie cheat or steal from your employees. We have a way of finding out whos legit. Just like you do.

What I would suggest op, is get one truck. Run it and save the money to hire some one on the books.
Here's why, once you say here's your next load. Versus, where do you want to go next? You just made me your employee. And now I want every thing I'm entitled to as one.

It could be a 7.00 per mile load. But one slip of that tounge. And your on the hook for a whole lotta crap. Where not trying to scare you. But 3 or 4 or5 big company's just lost millions upon millions in a law suite going this route. Good luck to you.