Confused about driver's pay

You are wrong there! Thats the way some of the bigger companies do.
I think Prime does it something like that and the driver has the option to buy his own accident isurance. A indiviual can buy that type insurance cheaper than buyong workmans comp. For someone wanting the freedom of being a O?O and not having the money for their own truck it's a option. Most of the furmiture haulers get their trucks that way through the companies they're with. Only teamster think like you post.

 

You're doing this backward. What you need to do is first figure out what gross pay amount will attract the driver you want. Then, looking at your business model, figure out the best way to bring that amount to your driver each payday in the most predictable fashion.

The side benefit is, that makes it easier to set expectations. Say you offer a guy 35¢ a mile. He immediately associates that to his last mega-carrier job where he pounded out 4,500 miles a week and thinks he hit the lottery. Anything less and he'll think you're a liar and a cheat. On the other hand, an approach where you say "you ought to make $XXX per week and here's how I get that number" is more credible and you can deliver on it.

Obviously, you'll put a pessimistic number out there so there's upside to the driver on things known that can go well, and not too huge a hit to you if you need to make it up on a short pay week with bonus or out-of-route perks so your guy or gal can eat when the truck breaks down, or get home now and then.

 

Never thought of it like that. May be worth examining ?

 

Prime is in the truck renting and fee business, all that freight hauling is just a nessary evil. how do they become a O/O if they never own the truck? Finish the lease and give the truck back and then they give them a completion bonus of money they earned and Prime held back from their check.

Hiring a driver and doing paper work tricks so you can pay on a 1099 is wrong.
There are many out there working on 1099 pay and don't have a clue that they have zero insurance coverage until they get hurt and have to sue the owner who has nothing.

Why not try and raise the standard instead of lowering it so you can make a few more bucks.

 

You're wrong again. The Prime drivers I talked with knew they'd never own the truck, but after completion could get a new one if they wanted too.
They also knew they were respnsible for any insurance they might aqquire. the company did offer insurance and paid a small portion of it. Now taking your point of view how many more people would be unemployeed? How do you come up with just cause you hire a driver or rent him a truck you are responsible to raise him too? Man should know what he needs to work and he accepts it then so be it. When I ran my shop when I had someone work for me in a contract labor capacity I explained it all up front. I am in business to make money. don't know if you are or not? If not maybe you should try be a social worker or community organizer.

 

So you advocate breaking the law? If a so called contract labor employee quits and then complains to the IRS and state labor board the will come and collect what is owed, I know of several that we under because of this happening.
If someone gets hurt on the job with no insurance, we all pay for it.

Find out what it cost to do business properly and legally, then find freight to cover those cost, not take what you can find then strip your business of cost so you can haul at that price.

 

It isn't that simple . If the owner picks the loads the driver hauls the driver is still an employee . A contractor picks his own loads and chooses when he wants to work . He's his own boss contracted to the owner .

 

Pay the driver a salary, deduct taxes and give a bonus for avg above 6mpg. Keep the truck and trailer in good operating condition and get things fixed when needed Seems to be the best way to keep a driver to me.

Unfortunately the OP seems to be setting himself up for failure by running his driver on brokered loads and trying to skim on all the things that need to be done. But like you guys said, once the IRS finds out he is paying his driver thru a 1099 then it won't matter anymore. Just ask Fed-Ex how well that worked out for them.

 

You are wrong again. I never said break the law! What I said is you rent the driver the truck! You can look up online on the IRS site what a 1099 contract employee is: someone whom furnishes their own equipment and has the freedom to do what they want. You should stop adding words I didn't type. I never said "forced dispatch or when they had to work did I? As far as a former contract labor employee quit and run to the iRS, I had that happen twenty years ago. He screwed himself when he could have taken schedule C deductions and owed NOTHING, he had to pay his portion of the SSI and all his federal taxes. I paid nothing in the end. Not cutting taxes don't make the employer responsible for employee's taxes, only his portion of the SSI.
Don't know why all these guys think they get their taxes paid free?
You should visit the IRS gov site before you spout off half truths.
As to insurance it is cheaper for a indiviual to buy it than do all this stuff you propose. I consider most insurance useless anyway many years ago my 2nd wife was in a auto accident left with multipule level brain trama. I had insurance what did they pay for NOTHING I had a 123,000 in med bills, no help on rehab. So as far as I'm concerned insuraance is useless. Now I never said I wouldn't help someone that was a contract laboreer for me with some ins. I try and operate as lean as possible thats the only way to survive.
I take it by your rehtoric you are leased to a company? If so you're just working their loadboard so whats the difference? One thing I find nowdays is people are better at telling lies than anything.

 

Who Is An Employee?


The IRS Definition
The Internal Revenue Service uses these criteria to determine whether an individual is an employee or an independent contractor. The worker is an employee if...

• You or your representative tells the worker where, when, and how to work.
• You train the worker.
• The business performance depends on the worker.
• The worker has a continuing relationship with the company.
• The worker�s services must be personally rendered by the him/her.
• You set the worker�s work hours.
• The worker works on the employer�s premises.
• You are paid by the hour, weeks, or month.
• You furnish tools and materials.
• You can fire the worker without violating a contract.
• The worker has a right to quit without incurring a liability.
• The worker does not offer the worker�s services to the public at large.
• The worker has no opportunity for profit or loss as a result of the worker�s service.
• The worker has no significant investment in the business.
• You require the worker to submit oral or written reports.
• The worker is a corporate officer.