Getting a 1099??

Oh right. Don't know anything about roll overs. But I do know Stick with it. Took me nine years. To find one. Talk with lanstar. If they will take you ill give you my bosses number. He has a empty truck at the moment

 

Just to understand here.

You will drive a truck owned by this company,
The company pays all the trucks expenses.
The company books all the freight and schedules load and delivery.
They pay you weekly?
They do not withhold any state or federal income tax. Pay and other compensation is reported via 1099.

 

That just about sums it up.

 

Which means their employees are miscategorized as contractors.

 

People gotta work somewhere.

 

I’ve had a 1099 job and it went great. Did it over a year and made a lot of money.

1. you don’t need to file taxes quarterly. You can if you want, but I wouldn’t.
2. Yes you can get a huge tax break on 1099 for deducting things like your per diem. You can deduct anything you can think of, work clothes, tools, boots, work gloves, etc.
3. You will be considered an independent contractor in a sort of way, you don’t need an LLC or anything of the sort.
4. I would save 10% of your paycheck for taxes, esp if you have kids.

 

This is what I was thinking as well.

 

By all the factors here, you are an employee. You need to be very carful with this. I fully understand the want of an income. I certainly commend you for the stand up. The IRS, federal labor and states are really cracking down on this type of operation. Should any of these agencies decide to look into this company, it will be ugly and most likely end them. IRS audits on 1099 employment is the highest level. That’s usually how they get discovered. Then you have the disgruntled person that reports them or files a legal action. Should one of these things happen, any monies you may be owed will more than likely not be available.

Taxes; you will need to pay quarterly, you can base them off your previous tax returns for the first year, after that, you should have a better idea of your estimated income. Then you can adjust your payments. From your prior tax returns, you should be able derive a percentage tax rate. This would be what you payed to federal and state plus any other taxes, like city or county from your total adjusted gross income. One thing people forget is that employers pay a portion of some taxes, like social security. You pay 7.65 percent, so does your employer. On a 1099, you are responsible for the full 15.3 percent. Some might say don’t worry about paying or filling tax returns. Truth is, you probably could skip that for several years. Then it will come bite you and bite you hard. This industry is one of the highest for auditing.

Not saying don’t do this, just you need to be fully aware of what your getting into. You should really talk to a CPA and ask lots of questions. Most will do a free consultation, hoping to get your business.