Super ego /kordun/Rex/Floyd trucking

Formal agreement can't override Federal and State Law. Even if you signed agreement with employer it won't establish legal ground for employer to charge driver for repairs etc. The only way driver can be treated as independent contractor when he own the equipment or lease it from a third party provider. In all other cases he considered EMPLOYEE. The fact that driver receive salary via 1099 doesn't not make him contractor.

 

Owning the tools of the trade, while it is one criteria, it's not the only criteria. There is a checklist by the IRS of something like 20 questions, some more important than others. It's more a feeling than any set in stone rules. If, after answering the questions, one tilts more to IC or Employee is a matter of looking at all the answers and deciding which fits.

Stuff like setting own hours, choosing own work (typically shown as choosing own loads), pay, ability to work for another company, etc.

Here is the IRS website to help determine. Independent Contractor (Self-Employed) or Employee? | Internal Revenue Service

That said, yes I would guess 99.9% of the 1099's in te trucking industry is mis classified.

 

Exactly , 99.9% are misclassified. But if a company pays a driver 1099 it doesn't mean that such company is automatically bad.

 

Try telling that to a lot of folks on here who have lost their ##*** doing 1099. There are quite a few companies discussed here on the issue.

 

what did they lost? It doesn't make sense.
I know personally a lot of good companies who pay 1099 and they are way better than majority of those who pay W2.
My point is there is no correlation between bad company and 1099.

 

I disagree. The company is breaking the law. That's a automatic move to the bad category. Two main reasons for this. One is they don't care enough about the employee to pay the unemployment and workman's comp insurance that's required. Also, what other laws are they willing to break to make a few more dollars?

No, any company paying on a 1099 (unless it's true contractor work, like for a broker off load boards and such.) is automatically a bad company. If a driver thinks they are not, it's because the driver is also a bad person as the only reason I've found is them trying to avoid taxes.

 

Really?Name one or two. As I said before,here on the forums and elsewhere there are plenty of horror stories involving 1099 outfits. And the majority of the issues involved the companies misclassifying employees as contractors to get around paying taxes on purpose.

 

So how about if driver (bad according to you) pay all taxes and pay them even more than regular W2 employee? Also bad?

 

I can name hundreds of them. If they were so bad they wouldn't exist. There are also plenty of stories about mega cariers and another companies who do pay W2. I can name hundred of them too based on forum threads.
Again, you can say that company is bad because they drive white Volvo. But there is no correlation between driving a Volvo and fairness of given company etc.

 

OK, I'm assuming company and employee are folllowing the letter of the law, it still comes down to an agreement between the two parties. There shouldn't be any surprises.