From 1099 to W2 employees

Yup, thats about right. You should have some good paying freight to mke fuel, payroll and truck payments.

 

welcome to big gubermint....

Sucks too.

 

Everyone out here pays on 1099 but Im in michigan the laws allow that, or at lease thats what every fleet owner says, they gave me a paper to sign that said that i know we dont have wc, that was 3 years ago but they still do the same thing the guy has over 40 drivers at the moment.

 

They did last year and still nothing has changed. Idk what to say they give the option to the driver to drive for two companies at the same time so they can do the 1099 thing. Ask Pavel94 on here

 

Not EVERYONE advised you to go from 1099 to W2. Workers comp rates can vary widely from state to state. You may check to see if it makes sense to move your legal corporate office to a different state. Many corporations have their corporate offices in states such as Delaware and Nevada, but their physical address in a different state. Some states will also allow you to purchase an occupational accident policy rather than workers comp, depending on the number of employees. Workers comp is really a scam with the states in control of the money. An occupational policy can work much better in some circumstances.

One reason so many carriers have gone to lease purchase is to avoid some of the high taxes and workers comp costs. You may also consider restructuring your driver pay. Another thing would be to pay a per diem. That could possibly lower your tax bite as well as cut your workers comp rates. One thing is for certain. You will probably need to find higher paying freight to offset some of the extra costs.

 

I am not sure its just one paper that says all drivers under this company are indipendent owner and have to supply the GPS's, Maps, Log books, and uniforms. even tho the company does have uniform they give to the drivers. the pay starts at .35cpm and goes to about .45cpm and the bones are amazing they give about $1200 per year in bonus money. The manager can be a pain in the ##### but someone has to be the bad guy lol But yes they pay on 1099 and every one is happy.