Sorry for the double post.. could not edit for some reason.
At the end of the year you could use everything as a write off.
EXP had a driver this year make 150k by tax time he ended up paying 12 hundred to the government he was a independent contractor.
Al though the I would be the last person to mess around with the IRS.. hell they couldn't get Capone for anything but the IRS got him.
OTR
Discussion in 'Questions From New Drivers' started by MrReactor, Sep 4, 2006.
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Look...you're dead set on doing this, and from where I sit, and having dealt with the in's and out's of this industry for over two decades, it has all the indications of a red flag alert.
I've been taken to the cleaners by a big company, and even worse by the one teeny, tiny trucking company that I had the misfortune of hooking up with. The conditions you are being offered were similar. He was living from week to week, and we parted ways 16 months later, after bouncing two of my payroll checks, and then ultimately taking them to pad his money problems. I lived and learned. He was pure slime.
You are entitled to the same tax deductions as an employee that you are as a contractor. The differences that you will experience, are not slanted in your favor.
Read this carefully, because you haven't grasped it previously. He is violating IRS laws that are set in regard to determining your exact status, when he issues you a 1099 misc.. I know employment law VERY well. Your going to work for him, driving his truck makes you an employee. There is nothing about that arrangement that makes you an independent contractor. He's doing it to skirt his obligations to pay half of your Social Security taxes, and to save him the time and trouble to make weekly tax deposits on behalf of his employees.
Now, to clarify something, you are not violating the law if you go into this, but you are not being wise to do it. And you need to be aware of the pitfalls when you enter into these kind of situations.
80% of people who enter into these kind of arrangements wind up in trouble with the IRS, because the promised wages never pan out, and they cannot make those tax payments when they are due.
Now...as to whether or not you will fall into the 20% that do just fine, who really knows? But you're the only one that can prevent yourself from rushing into a bad situation, before it is too late.
I will offer a repeat of a point I offered earlier. Why would a truck go empty and undriven, with a job offer like this, for this kind of money, if there was not some reason for it? When you find out the answer to that question, you may not want the job after all. I hope you will attempt to find the answer BEFORE you take the job and find out that I may be right.
You're totally unaware of just how badly people can be abused in this industry, and while I understand your wanting to bypass steps that others take to get into trucking, the very fact that this guy is so willing to take you on as a completely inexperienced driver, scares the hell out of me, for you that is.
It's too good to be true, and one thing that I have found out over all my years, is that when it's too good to be true, it's usually because it's not true at all.
I wish you well... -
Turbo, as always, your advice is breathtaking! OK that was a little TOO over the top! Good advice, though!
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I don't like to see bad things happen to good people, and it's because this industry is plagued with so many pitfalls that need to be pointed out every now and then, that I take the time to do it.
At the same time, I love the trucking industry, and I love trucking. It's been my choice of career for so many years, and it's been good to me and for me.
When you make comparisons to other lines of work, and when people gravitate over to this industry, one of the biggest shocks that people express time and time again, is that there are few protections and laws that Govern employee/employer relationships. I think that this will change eventually, because things are getting out-of-hand, and it's almost pathetic how creative some companies will get, to attract drivers to jobs that aren't worth having.
Driver's and especially entry level drivers, have to do their research on the people and/or companies that they go to work for. I know this from experience, because I've been a victim a time or two. I've lost a month's pay at one time, due to my trust. When in business and in the course of running a company, a customer bankrupted on me for over $32,000 I had on the books.
All companies, and employers are not created the same, and you have to use that inner gut instinct, and never go against it. Walking away from something that doesn't seem quite right is far better, than to try it and discover that your instinct was right on target. Then it's too late.
Most people know that when someone calls you on the phone and claims that you have won the lottery, and wants a credit card number and other personal information, is attempting to rip you off big time. Yet for some strange reason, the thieves still thrive, and people will on occasion fall for the rouse. -
Well MrReactor how has it or did it work out.... I am being offered a similar situation .... A dedicated run from Lansing MI to Miami FL .... dry frieght down, no stops and then produce back up making 5 stops ... most hands off except for 2 of the 5 stops I will have to load some crates..... 3 weeks on and one week off...... $925 per week paid by 1099 .... Now I do know the O/O is on the up and up..... is last guy just gave his 2 week notice to drive car hauler ..... am I missing some flags here ???? BTW I am a new driver... 56 yy .... no wife .... grown kids and have always wanted to drive truck ..... I am looking at this as a great opportunity..... perhaps other eyes can help me to better understand reality
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Do you have any experience aroun hauling produce at all? How you need to check the condition and temperature of it when loading? How to avoid letting the reefer freeze up from wet produce in hot and humid climates? Hoe to make sure those wet boxes are loaded properly and will stay in place with two load locks? There is more to produce hauling that typical dry freight hauling, and smaller companies tend to put the responsibility soley on the shoulder of the driver to get quality produce to the receiver, without it falling out the back doors when you open them (it happens).
Do you know this guy well enough to trust him to pay you? Been burned by this, by the way.
How will you handle breakdowns?
Do you know which produce to load first if you have multiple pickups?
You need training. Even with training, you are not going to learn everything you need to know, but it will at least eliminate some of the learning curve once you are out there.
I know you will hear "old timers" talk about how they were thrown the keys to the truck and told to go get that load of freight, but things are a little more complicated now.
Heading out on your own with absolutely no experience is not a good idea. -
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I have been reading many posts in this forum with great interest..... and I have learned from it ..... but I just want to make this comment on this post..... What in the world did the industry do prior to schools??? I for one have not been much of a book learner .... I have been an OJT ( on the job training ) person .... Now do not get me wrong I believe some need book learning and actually we all do to a certain extent .... but to me finding someone with the internal fortitude to grab a career by the horns and run with it shows me heart and commitment.... I went to my local DMV picked up there book and self learned the contents... and as I have said read many a post ion this forum..... When I felt ready I went and took My written tests and passed them all .... missed a few questions and then went back and restudied them all ..... I have been driving large motor homes .... towed 40+ foot power boats thru the streets of many cities ,,,, hauled around a 40' wheel camper ..... off and on for 30 years ..... Do I know it all or proclaim to know the trucking business?? NO !!!!! If I cannot find some one to help me learn the right way then yes I will go to school but to be honest it will be a last resort ..... too many horror stories about them but could be a necessary evil to accomplish what I have my mind set on to do..... I am not trying to get something for nothing .....
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
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