Job offer from a local O/O

Discussion in 'Ask An Owner Operator' started by DJ4wd, Nov 19, 2010.

  1. Les2

    Les2 Road Train Member

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    I've got an uncle and cousin working for them. I have no first hand experience myself.

    My uncle is OTR for them and is never happy. So anything he says I won't put any stock in.

    My cousin is local and seems to like it. He's been there for a while, maybe a year.

    You will be better off working here than working for that O/O I'm sure.
     
    DJ4wd Thanks this.
  2. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Sir you are smarter than this.

    I am not referring to the lease purchase/1099 and you know it.



    All along I was referring to the practice of hiring a driver and then treating them for the sake of taxes as a 1099 Lease Purchase deal. The whole discussion of this thread has been about this guy driving another guy's truck for wages and being paid on a 1099. Until now LP wasn't mentioned.

    This is illegal.
    Ask your accountant.
     
  3. Les2

    Les2 Road Train Member

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    I was using the L/P as an example of the fact that the 1099 is legal, as of now. Like I said earlier the Gov't is trying to put an end to it, which is a good thing, except for those involved in a L/P.

    As for an O/O with a cpl trucks wanting to pay on a 1099? It's perfectly legal, as long as you do not treat said person as an employee.

    Anyway, my best advice to someone seeking employment from someone wanting to pay on a 1099, go talk to the IRS or a lawyer who deals with the IRS. They will have all the answers you need.

    As for my tax lady, ain't no way I'm getting rid of her! Even though I have never actually met her...:biggrin_25523:. Not joking either. Wouldn't know the lady if I was standing next to her.
     
  4. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Like I said........... ask your accountant. Thats seriously flawed advice.

    The 2nd point..... is good advice. And I know what the correct answer is.

    I'm done arguing about it. I'd suggest you contact your accountant or the IRS yourself. You'll be surprised what the answer is.


    The O/O hiring drivers to drive his trucks is not going to be able to treat them like employees in order to satisfy the IRS regs.

    To make it easy I've included a quote from the IRS website and a link to read for yourself.





    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
     
  5. DJ4wd

    DJ4wd Light Load Member

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    Ill be OTR until either my wife graduates college, or I find another company or maybe local again lol
    At this point in time if everything works out, and I can just get back OTR Ill be happy. Thanks for the info though.
     
  6. Les2

    Les2 Road Train Member

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    Thats cute but you left out some important parts. I'll post them up just incase you missed it..

    Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another

    See there is a very important part in this quote that you seemed to miss.

    There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination.

    The problem with all this is, the IRS doesn't give you a definitive answer.

    The reason I brought up the L/P is the fact that its proof its legal and also proof of how it gets abused. When you're treated like an employee but being paid on a 1099, that illegal!

    As for dealing with the IRS, been there done that on this issue. Apparently you over looked that in one of my previous post, but if you want to tell me that they are wrong, by all means go ahead, I need a good laugh...

    Now if you want to continue to give wrong info thats you business, personally I don't care. But just cause we all agree we don't like the 1099, it doesn't mean its illegal.
     
  7. Roadmedic

    Roadmedic Road Train Member

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    You really like to stretch the rules to your favor apparently.

    You have a company that has trucks. What do they need?

    Drivers.

    Drivers need a job. What do they have to offer?

    Seriously though.

    A company that utilizes a person to drive a vehicle and provides the vehicle and maintains the vehicle and fuels it is nothing more than having a company driver which is an employee. You set the rate, the driver does not have the right to refuse or negotiate.

    This employee cannot take the truck and go anywhere else with it. He cannot maintain it. If it breaks it is not his problem. Let the driver get hurt and you will find that the workmens compensation rules of insurance have been skirted.


    I have a major problem with the lease purchase deals that are rampant in the industry. These are nothing more than hidden company drivers and them forcing the cost of operating over to the driver.


    IRS has always had a problem with any statuatory employee classifications. I have had many issues with them over the years, not just in the trucking industry.

    Apparently, you feel differently, but I have a major background in the tax law and as such must advise you of the correct method.

    Link from a post dealing with the issue

    http://www.thetruckersreport.com/tr...st1551681.html?highlight=employee#post1551681

    Whether you listen or not is not my problem. But the reason of the forum is to provide answers to the many people here. I would hope they would be correct.

    I have also posted another thread on this

    http://www.thetruckersreport.com/tr...html?highlight=workmens+insurance#post1615523


    In addition, I have listed the link to the IRS website that deals with this topic. I suggest you read the Common Rules and look at the Behavioral, Financial and Type of Relationship.

    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
     
    Last edited: Dec 4, 2010
    walleye Thanks this.
  8. Les2

    Les2 Road Train Member

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    First off I didn't stretch any rules to benefit me, lets make that clear. They came directly from teh IRS website, you don't like, take it up with them.

    Secondly, if you do have a major background in tax law, then you yourself should know its not illegal but yet you still continue to come on here and post false information. SO either you need a refresher course or you need to contact the IRS and tell them they're wrong. Either way I don't care, but I have to bet they are gonna get a good laugh out of you?

    Thirdly, You and Brick both came on here and did the political post type deal where you only post part of the truth and not the whole truth unlike myself. You both only posted part of the IRS quotes instead of the whole quote which told the rest of the story.

    Last but not least, you and Brick both need to just put your bigboy panties on and except that your off on this one. I also never stated anywhere that I like the 1099, so your assumption was wrong. I don't like it anymore than you or anyone else, but it doesn't make it illegal. SO stop turning a blind eye to the truth just cause you don't like it. Maybe one day when you become an IRS agent, with all your vast knowledge, you can change the world and the 1099 issue.

    Have a good one!
     
  9. Roadmedic

    Roadmedic Road Train Member

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    I was polite and did not try to insult.

    You show your level of intelligence quite well.
     
  10. Les2

    Les2 Road Train Member

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    Nowhere did I insult you so you can just drop that right now!

    But I and many know how you are so I expected nothing less for a response!

    As for level of intelligence? I may be lacking a college degree like yourself(if you have one, I really don't know) but I'm not lacking in common sense. The great part about that? I can pick up a book to read if I want to learn about something new, whereas you can't just pick up a book and learn about common sense!

    Have a good day and end of discussion!