Question about 1099 as a company driver

You're ok, man. One way or another, you got the ball rolling.

 

Just please don't do 1099. You will be screwed by everyone but someone you want to be screwed by.

 

If you factor in the taxes you will owe by working 1099 the 68 CPM is actually 59 CPM and with no benefits and a requirement to calculate and pay quarterly taxes to the IRS or pay penalties.

 

Seeing as a company driver in the LTL sector get nearly that pay per mile nowadays, plus a full benefit package, the pay you listed for 1099 work doesn’t even match up.
Now if the pay was somewhere around $1 per mile, and you have a working spouse that can cover you for health insurance, and your spouse can contribute the limit on a 401(k), and your spouse can cover your tax liability, and your truck is paid for, and, and, and………….

 

If the companies in the OP's area are not paying what he needs, MOVE TO ANOTHER AREA. American's didn't used to put their feet in cement at a job unless it was some cradle-to-grave place like IBM, GM, GE, ATT/Bell Telephone. Americans used to move 7 or more times in a career.

 

There is no such a thing as a 1099 company driver...

 

Too many folks gave you too much misinformation about 1099. You pay lower tax rate when you’re 1099, also you can deduct a lot of things, like food, uniform, transportation to and from work, tools used for work, and much more, so at the end of the day you’re feeding your family first before you feed the government. Taxes don’t need to be done quarterly since you can do extensions. However there is much more book keeping involved with 1099. If you need insurance, it can be obtained relatively cheap on marketplace ($60) a month. Personally I’d never do w2 again. I like to keep my money in my pocket and not give away %35 handouts.

 

Wow….
Your first line is so true.
Every thing else…not so much.

 

just wondering, have you ever been in audit?

You have to itemize your deductions in order for you to take those deductions. The other stuff in order for it to actually count, you have to have more than the 'standard deduction' and then it has to be a good amount above that.

Transportation is not one of those items that are normally allowed and can be disallowed because of the nature of this industry. Also, uniforms normally have to be company-specific in this industry - meaning the company name has to be attached.

You can end up paying more, you will be paying all your social security (catch-all term) which is 15%, and you may end up paying more in the long run.

What no one mentioned here is what a legal 1099 driver is.

The pay/taxes are a third of the issue.

Another third is the relationship - meaning the distance or autonomy involved between the driver and the fleet. This means outside of limits things that the driver can be told the driver has the option to refuse work and to route themselves and drive the truck without interference. The driver can not be punished for exercising his/her ability to make these decisions at any time. There is an exception to this when a driver is contracted for very specific work and that work is spelled out in the contract.

And yet another third is this is contracted work, without a thorough and detailed contract - meaning no boilerplate or copied contract, the position is just a W2 position. A contract has to be given to a potential driver before signing it and this is to allow a review of the contract with a legal advisor. AND a copy of the signed contract is given to the driver for their records.