Independent Contractor / Company Driver

Personally I would prefer to be a company driver. You get the taxes properly taken out, and you hopefully get company benefits too. As a contractor, you are responsible for taking out your taxes and banking that money for either a yearly donation to the IRS or you pay quarterly. You would need to be disiplined at this. Because, you would get say a paycheck of $1,000 but then you need to set aside money for taxes. In the company driver situation, you may end up with say $700 after the taxes are taken out, but I think that you would have less chances of blowing away your tax money for something foolish like a high powered CB radio, or something you think you need because you have so much money to spend. TAXES, TAXES.........like DEATH, are always due on demand.

 

Some employers try to classify their drivers as independent contractors to avoid unemployment insurance, workmen's compensation insurance, social security contribution, medicare tax, and the usual fringe benefits. Some of these drivers do not meet the definition of independent contractors that requires substantial investment in the means of production (owner-operators) and driver decision responsibility about when, where and how the job will be accomplished. Personally, I prefer employee status. In my experience, when my lease was broken due to a downturn in the economy, the employer had to find me a tractor with a company fleet owner, or pay unemployment.

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

 

You're welcome. Want to know something true? I once applied for a driving job. Little did I know at the time it was an Owner/Operator that needed a driver till I started asking questions. I was really talking with the guy's wife. I started asking the usual questions about benefits when she said they don't have any. This was red flag #1. I then asked about the equipment, she said that it was good running equipment. This was red flag #2. I then asked if they paid by with holding taxes or not. She said something like, "You know, we don't think a truck driver should ever have to pay taxes because of his job, blah, blah, blah". Not only was that red flag #3, but it was also when I abruptly hung up the phone. I knew I'd be in a heap of trouble either collecting my weekly paycheck but in deeper water if the taxes weren't reported properly, by either them or me. If an Owner/Operator goes belly-up and they leave town, try collecting your money.