What should I pay a driver?

The worker agrees to be responsible for his own taxes (1099 - the way it should be), then turns in the company because he didn't pay his taxes. The tax cheat then turns in the company that he made money from in the first place. The guy who blows the whistle is a tax evader. He doesn't want to take responsibility for his own taxes. If he didn't want to take that responsibility then he should never have agreed to be paid on a 1099. Anyone who agrees to work on a 1099 and then turns in the company for not taking his taxes out should be thrown in jail for tax evasion.

 

I have a few friends who own trucks leased to a fuel company that runs here in central Ohio. They all pay their drivers and 1099 them at the end of the year. The owner/op's are all incorporated and pay the workers comp. They then pay their drivers accordingly. A couple guys pay a flat weekly pay. They get burned because the drivers are lazy knowing they are making the same all the time. The others pay their drivers a percentage (30-35&#37 of the net to the truck, minus fuel surcharge. It's been that way for years and none of them or their drivers had ever had any issue.

 

It should not be a problem as long as the driver pays his taxes and doesn't try to throw the burden on the owner. Paying workers comp could cause them a problem at some point since that is only done for employee's. It would be better if the drivers had to pay for an occupational accident policy, but as long as the driver doesn't try to evade paying taxes it will be a non issue.

 

Sorry to disappoint you, but the real tax evader and cheat is the business owner who improperly pays a driver as a 1099 worker.

The driver who is the 1099 earner is not a true contractor. They do not own the truck, nor have to repair it, pay for the fuel or license it.

I believe the owners who do this should be thrown in jail before the victim who did not go along with the illegal act.

 

The driver should be told from the beginning how he will be paid. He isn't being cheated. It is the driver who fails to pay his taxes who is the cheat. If a driver agrees to be paid with a 1099, then he should be held accountable for his taxes. Most carriers or owner operators who pay their drivers with a 1099 should have a contract where everything is spelled out, including the drivers responsibility to pay his own taxes. Most who are paid with a 1099 are paid at a higher rate than if the carrier had to pay with a W2. There can be some tax advantages to being paid with a 1099. And you don't have to own the truck to be paid with a 1099. There are a number of professions where the contractor is paid with a 1099. Some salesmen are paid with a 1099. Construction workers are another group who are often paid by 1099. According to IRS rules, it is the control over the driver that is the main way to determine whether a driver should be paid by W-2 or 1099. When the driver spends all of his money and then doesn't have the funds to pay his taxes, then the monkey should be on his back. The carrier pays the driver as agreed. It is the driver who fails to file or pay his taxes and then attempts to blame the carrier, who is the tax evader. Frankly, I would like to see everyone be responsible for their own taxes where they have to sit down and write a check to the IRS each week. I guarantee you would see changes in our tax system. Most people don't have a clue as to how much they really pay in taxes. Personally, I would prefer being paid 1099 if I worked for another company.

 

The driver is the victim? Are you kidding me? The driver agreed to be paid by a 1099 when he took the job. If he later tries to get the IRS to come back on the carrier, then it is the carrier who is victimized. Give me a break!!! Throw the driver in jail for tax evasion and lets make him pay the carrier for their trouble.

 

If a company cannot comply with the law, then they do not need to be in business.

It is illegal to classify them as such NO MATTER WHAT IS SIGNED.


The reason that there is a withholding tax in the first place is that people would not pay the IRS from their take home. There is a major problem with this on the small business owner as well. They tend to not pay estimates and such.

It would definately make an impression on them when they pay and unfortunately, the monster created by both parties will never change.

 

It does not matter if the employee contacts the IRS or not.

If the IRS comes in and performs an audit, then it will be found and the employee who is wrongfully classified is not responsible.

Break the law, pay the price.

I have no compassion for the company that does this. They earn it.


I have seen where they give them a check and say here is your pay. I have seen them not even clarify how they are being paid and not finding out till the return is being processed.

 

Whether the driver is an independent contractor or employee can be a very fine line in this business. I have spoken to the IRS about this in the past and check it with their propaganda. Like I stated, unless the driver is a tax evader or tax cheat then it is a non issue. There could be some tax advantages to a driver being paid on a 1099. I have worked on a 1099 myself and prefer that to a W2.

Something to keep in mind is that if you have a refund coming then you have over paid your taxes. When you get a refund on prepaid taxes you have given the IRS an interest free loan. I would much rather owe the IRS at the end of the year than give them my money interest free for a year. If most people filed exempt on taxes, invested the tax deduction and then paid any taxes at the end of the year, they would have more money in their pocket. I suppose that would not work since most people want to rely on the government or their employer to take care of all their needs rather than them taking responsibility for themselves.

 

Sorry to hear about your medical condition. It sounds like you have been in this industry for a while. If you own the truck outright and can't or shouldn't drive it, park it. If you owe something on it, sell it. The amount of stress that will be involved hiring a driver, especially the operation you are involved in will cause mmore medical problems. I am sure you can go to work for a transportation company as dispatcher or other position until you are feeling better.