1099 companies

I too worked for at least 3 companies that paid that way.

One reason could be the taxes like you say, but then it could be for insurance purposes as well, especially workman's comp (not an employee..?, they don't need it and the premiums.??).

But in the end, I would NOT like to do any more work for such a company, and by the way, many o/o's pay thier driver's on a 1099.

I'll have my taxes taken out, especially for SS and disability, AND unemployment!!!

Try collecting unemployment, and you worked for a 1099 company!!!!

 

hypothetically, IF i were to ever drive for someone giving me a 1099, I would of told him the write the check out to himself, go cash it, and hand me $100 bills, and then of course properly claim it on my taxes the next year...

 

There has been so many companies, I think Fed Ex Ground (comes to my mind, the "contractor side of it") that have paid on 1099 but the person was STILL considered an employee of the company. Many lawsuits had been started and settled over this "description" of an independent and employee.

 

So if you are a 1099 contractor and they don't pay you, do you have any legal recourse other than small claims court? It's not like you can turn them in to DOT for it...

 

I think (or thought) small claims court has a limit on the dollar amount, like $500 or less??

 

No but you can call the IRS. That is how most employee reclassifications start.

 

They do this because a "contract driver" (thus getting a 1099) is NOT an employee. No need to offer (or provide) benefits such as health insurance; and there are no employer payroll tax (medicare/SS) liabilities. It's a significant savings and reduction of tax liability for the trucking company, BUT leaves many 1099 contract drivers struggling to avoid a visit by the tax auditor because they did not file honestly or pay any or sufficient quarterly taxes due to the federal/state government.