Warning all leased O/O

I’m pretty much dedicated to a logistics company but technically I’m leased to a carrier because I use my friend’s authority. I could get my own authority and keep doing what I’m doing because technically the logistics company is separate from their trucking side. The “B” part says you can’t use contractors to perform your main business function ie: a trucking company can’t use trucking companies as contractors.

 

They could cut one check for the use of the equipment and cut a check for the driver as their employee. It’s called a 2 check system and used to be somewhat popular with Teamster owner operators back in the day. The bad part is technically you’d be their employee so then they could force dispatch and limit your home time and whatever else they wanted

 

FICA taxes is what they are after. The payroll model has become too obsolete for the taxation model to be effective any longer.
That's understandable and to be expected. Manufacturing is shrinking and the service sector expanding which thrives on freelancing and contractual relationships, more poeple can work from home too.
It is, and should be, a natural thing of a person wanting to live in a free world to minimize paying taxes or legally avoid them.
If there are avenues to do so, they will be used.
Who of you all, don't look for write offs and exemptions?
Therefore, the Fair Tax System would solve all these problems including all the bureaucratic burdens this act would bring about, if ever passed.

 

Just FYI - Telling them that it will raise costs is not a negative from their point of view. If you hadn't noticed politicians and bankers, industrialists, etc love inflation, higher costs, decreased purchasing power for the consumers (cattle in the operation). Just wanted to point that out. Surely you have noticed our betters in the press stating they desire more inflation ( destroy the purchasing power of any money the working class managed to save) not less.

 

It would be surely unfair to me after all the years of my own income tax contributions and 15-20 years before becoming a senior with little prospects of any income at all. Not to mention those who already retired and are too old to work. This, however, is a viable solution in the grand scheme of things.

 

I can only speculate what the point of all this is, but that's a likely guess. The govt/IRS probably want's to shift the tax collecting burden onto the actual business entities/corporations so they get their tax payments every quarter without having to chase anybody. I doubt they're doing this because they just want to make it illegal for owner operators to make a living with their truck. It's primarily an accounting and loophole closing matter I would imagine.

 

No

 

If you use a LS flat or step you are paid the trailer % but you pay a weekly fee for use of the trailer. Unless that has changed in the last 4 years.

 

Statutory W2 ... you write off your expenses on Schedule C.

It's there for commissioned sales to write off the expenses incurred generating revenue for the company.

It wouldn't take much of a stretch to apply that to myself or rollin coal. If we don't book freight, there is no revenue for the company. Its our truck, our efforts that generates the revenue.