Paying off gross or net

The only way you can pay a driver on a 1099 is if they have control of the truck. If you’re treating them as an employee telling them when to work, what to do at work, etc paying on a 1099 is illegal. I’m not assuming anything. It’s IRS code.

 

I've been on both sides of the 1099 or w2 on percentage. I prefer 1099. Usually the percentage is higher on net but comes out pretty close to the lower on gross.

A good driver can save you alot of money, I don't agree with paying everyone the same, you get what your worth. If that number is not enough then feel free to leave.

 

Why are y’all replying about 1099 vs w2 and bypass his question entirely. There’s other threads for that.

To the OP, I think 27% off the true gross (confirmations) is in the right spot. Not too little to keep a guy and not to bad to still get a profit. Also depends on what you’re average gross is. If you’re regional and don’t run very hard this won’t work but it’s what I use.

 

27% is low for 1099 when there are W-2 positions all day that pay 25-27%.

 

You asked, if you don’t want to hear it don’t ask on an open forum. You’re putting the entire tax burden on your “contractor”. The guy I get my loads from pays his guys on a W2 with full benefits. He’s at 27% and if his company trucks do what I do working M-F his drivers gross about $1675 or so before taxes. So your highly paid drivers probably take home less and don’t have insurance than a regular employee with benefits.

When you come on the internet asking how much to pay your misclassified workers you may not like all the answers you get.

 

25% after fuel is what I made. And taxes were taken out.

I seriously need to move to the east coast.

 

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