1 Truck to 3 Trucks Overnight!!!!!!!

I worked as an accountant for 21 years and dealt alot with the issues of contract employee versus actual employees. Your business will not be the first to have such problems. The W-9 is used to provide you with their ssn for 1099 purposes. There are many driver and employee forms you will need to get. I would suggest JJ Keller.

Had one of my clients call me yesterday on a similar problem. He runs an electrical business. I told him I would be back from the California run in a couple of days.

 

You will be skating on thin ice with 1099's. I have done what you are wanting to do many times in the past. I also have worked under 1099's myself when driving for OO's.

I was lucky, and had no claims, though I had Workers Comp. or OCC on my contractors.

This was more common in the 70's and 80's. The problem arises when drivers have to come up with the full share of taxes by April 15th.

Suddenly they claim they did not know they were responsible for ALL the taxes, and were never told of this.

The IRS will then usually look into the supplier of said 1099. You are at the mercy of whichever agent you happen to get. Believe me, I have owned several businesses, and have delt with the IRS many times. They don't know their own rules, but what they say goes.

You can't win with these people. 1099's are a pet peeve of theirs. They look at them closely. Too many truck owners used them in the past, and the IRS lost money.

Why don't you just lease the drivers the trucks. Charge a low weekly lease rate, charge a few cents per mile for use of the truck, and give them a certain percentage of the gross. They pay the fuel, you cover the upkeep, tag, truck ins, fuel taxes, and let them get the loads through the company you are leased to.

They will have control of what loads they take or turn down, and where and how they get fuel, and what roads they perfer to run on.

They are technically now lease operators.

Call up Buel Inc. in SC. They used to do this all the time. Maybe you can snoop out some info on how to do this.


Buel Inc.
Private Company, Headquarters Location
Chesnee, SC, United States

 

The KEYWORD is "EMPLOYEE". As the EMPLOYER, you are still responsible for YOUR share of Federal Taxes, Social Security, Work Comp and Unemployment Insurance.
Naturally, an accountant is more likely to tell you what they think you want to hear, and not what the Law states. Next time, set down with an IRS Agent and have them explain what is legal and what is not.
Been-There/Done-That.
Sued two previous "employers" and in process of suing a third, because when all the marbles fall, inevitably, the employer thinks they always fall on HIS side of the circle.

 

Roadkill and others,

If you talk to an accountant and he/she only tells you what you want to hear...you need to find another accountant. Make sure the person is a CPA and also who understands employer (ER) and employee (EE) status.

Good advice regarding ER/EE status has been offered here (in my professional opinion).

94nole (aka a FL CPA)