truck company paying gross not taking ou taxes

Discussion in 'Trucker Taxes and Truck Financing' started by odis, Nov 13, 2011.

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  1. Nov 13, 2011 #1
    odis

    odis Bobtail Member

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    Why would a owner of a company not take out fica on a drivers paycheck what are the benifits for the owner? Anyone know? Besides the fact that the driver is now going to have to file his/her quarterly what does the owner get out of it?
     
    odis, Nov 13, 2011
    odis, Nov 13, 2011
    #1
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  3. Nov 13, 2011 #2
    mgfg

    mgfg Road Train Member

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    No insurance, no workman's comp, no benefits

    You are considered a "contractor".....hope you are getting LOTS of extra pay for this so YOU can go and buy those things....but i doubt it.
     
    mgfg, Nov 13, 2011
    mgfg, Nov 13, 2011
    #2
    Rollover the Original Thanks this.
  4. Nov 13, 2011 #3
    Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Owners have to match your witholding, so if they don't withold from you, they don't have to come up with their share.
     
    Allow Me., Nov 13, 2011
    Allow Me., Nov 13, 2011
    #3
    Rollover the Original Thanks this.
  5. Nov 13, 2011 #4
    odis

    odis Bobtail Member

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    May 27, 2011
    milan Il
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    I'm not working for this company but the driver I know that is doesn't care about the tax situation likes the gross pay who wouldn't but I realize the workman's comp and all the rest but I guess my ? is does he get to write off those wages on his taxes?
     
    odis, Nov 13, 2011
    odis, Nov 13, 2011
    #4
  7. Nov 13, 2011 #5
    formertaxidriver

    formertaxidriver Heavy Load Member

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    Tax fraud.
     
    formertaxidriver, Nov 13, 2011
    formertaxidriver, Nov 13, 2011
    #5
  8. Nov 13, 2011 #6
    Emulsified

    Emulsified Road Train Member

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    Writing off something on your taxes only means you give the money to someone else, not uncle sam.
    you don't get to keep it.
    He's treating your friend as a contractor to save FICA, FUDA, Workers Comp and soon...Obama care.
     
    Emulsified, Nov 13, 2011
    Emulsified, Nov 13, 2011
    #6
  9. Nov 13, 2011 #7
    RickG

    RickG Road Train Member

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    More than likely he'll get a 1099 at the end of the year . He'll have to file taxes as being self employed and pay taxes on it . The IRS knows he made it . He'd better report this employer to the IRS now . He's an employee being classified as a contractor .
     
    RickG, Nov 13, 2011
    RickG, Nov 13, 2011
    #7
  10. Nov 13, 2011 #8
    Emulsified

    Emulsified Road Train Member

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    It's too easy for employers to get around that one.
    The litmus test is: Does this employee have the right to haul freight for anyone else other than this employer?
    Answer: Yes, so long as he supplies his own truck.

    Gets them off the hook and allows them to call him a contractor.
     
    Emulsified, Nov 13, 2011
    Emulsified, Nov 13, 2011
    #8
  11. Nov 13, 2011 #9
    DragonTamerBrat

    DragonTamerBrat Road Train Member

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    The owner doesn't have to pay his share of an employee's social security/federal taxes. And no workman's comp either.
     
    DragonTamerBrat, Nov 13, 2011
    DragonTamerBrat, Nov 13, 2011
    #9
  12. Nov 13, 2011 #10
    RickG

    RickG Road Train Member

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    Not really . There's more to it than that . http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
    FMCSA also requires a written contract for contractors . If there's no written contract he's an employee .
     
    RickG, Nov 13, 2011
    RickG, Nov 13, 2011
    #10
    Rollover the Original and j3411 Thank this.
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