Sub- contractor

Discussion in 'Ask An Owner Operator' started by shantyshaker12, Mar 8, 2010.

  1. shantyshaker12

    shantyshaker12 Light Load Member

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    Oct 11, 2009
    warsaw,in.
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    Can anyone tell me if it's legal to have a driver sign a document that say's they are a sub-contractor and not take out taxes, if the driver is driving the owners truck ? I hope this is the right thread for this question.
     
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  3. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Baack Thanks this.
  4. shantyshaker12

    shantyshaker12 Light Load Member

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    Oct 11, 2009
    warsaw,in.
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    Thanks for the info. I've been working with a company that has 9 drivers who are all working as sub-contractors, but they are all company trucks. Don't really know what to do about it, if anything. When you don't own the truck, and don't pay for fuel you don't get enough deductions.
     
  5. Old Man

    Old Man Road Train Member

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    You might drop this article on the owners desk.

    IRS, states crack down on independent worker abuse
    By DAVE GRAM (AP) – Feb 11, 2010
    NASHUA, N.H. — The Internal Revenue Service and 37 states are cracking down on companies that try to trim payroll costs by illegally classifying workers as independent contractors, rather than as full employees, The Associated Press has learned. The practice costs governments billions in lost revenue and can leave workers high and dry when they are hurt at work or are left jobless.
    Many who have studied the problem believe it's worsened during the economic downturn, fueling even more aggressive recovery efforts by states.


    http://www.google.com/hostednews/ap/article/ALeqM5hdqC3b6B0eL-uQlC7O_sJPB7qNmAD9DQ5KL80
     
  6. shantyshaker12

    shantyshaker12 Light Load Member

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    warsaw,in.
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    Thanks for the link. I might drop a copy in their mailbox.
     
  7. brenda

    brenda Light Load Member

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    Feb 22, 2010
    columbia SC
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    Im going to work for an owner op,driving as a team,an when he.s off the truck solo.I have to pay $45 a week for work comp.The company he's leasted to wont allow a driver without it.This is news to me,but its a job.:biggrin_2554:
     
  8. Pawnd

    Pawnd Medium Load Member

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    Unfortunately when the state and IRS do step in it will likely be the end of the business.
     
    outerspacehillbilly Thanks this.
  9. brenda

    brenda Light Load Member

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    Feb 22, 2010
    columbia SC
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    I asked a tax representative about the same situation.It's allowed thru a 1099.Plus any money that you spend,in having that job,WHEN YOU DO YOUR TAXES next year,is credited towards your tax payment.
    SO KEEP RECIEPTS.
     
  10. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Your tax preparer gave you false info. It is not allowed.

    Do yourself a favor and get a second opinion. A second opinion from the IRS website that I posted a link to.
    Or better yet a tax lawyer.
    I repeat your tax rep gave you erroneous info, or didn't completely understand the question.
     
    Roadmedic and sweezly1 Thank this.
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