1099 Job

Actually you are wrong.


You NEED to go read the IRS regs on this. Read them for yourself.


http://www.irs.gov/businesses/small/article/0,,id=99921,00.html/

 

The mods will or wont close a thread at their discretion.

 

I find it interesting that the very first example given is for trucking.
Could it be that the Vermont labor board knows this is a major source of violations?????

Multiple levels of proving that driving a truck owned by some one else makes you their employee.

 

One reason so many carriers have gone to lease purchase is because of the 1099/W2 controversy. More and more carriers are also moving toward recruiting small carriers and independents with their own authority so that there is no question about who is responsible for the taxes. The only reason the IRS would get involved is if the driver evades paying his taxes. The driver takes the 1099 position, agrees to be responsible for his taxes and then spends the money and when the IRS comes calling wanting their tax money the driver tries to put the blame on the carrier. Being paid on a 1099 can be a good way to go for some and perhaps not for others. Not everyone wants to have their taxes withheld. If you don't want the responsibility of paying your own taxes then don't take a position where you will be paid on a 1099 and be responsible for your taxes. Go with a carrier that takes the taxes out of your check and pays your taxes for you. Don't take a position that you know pays on a 1099 and then complain about it later. Most 1099 positions offer the means to earn a bigger paycheck than on a W2. Not every company deals fairly with their employees or contractors. I believe that most are honest and treat drivers in a fair manner. Whether a company pays 1099 or W2 doesn't make one more honest or fair than another. It is just different. Some carriers pay a per diem, others don't. Does that mean that one is honest and the other isn't? The pay is the same. Both the driver and carrier may pay a lower tax rate with per diem. It also may eliminate one standard tax deduction for the drivers who are paid a per diem.

 

I know you have seen much on this.

Over the many years that I have been involved in accounting and taxes, 1099 issues have been a sore spot on the IRS. In some areas of the country they have been more agressive on enforcement and in others, not as active. With the recent laws that require more 1099 documentation, it is not going to be a surprise to see this become a more popular target.

As stated by many, it is nothing more than avoidance of following the proper laws and has been done for years. If in fact, many people had been jumping off cliffs for years, it does not make it right.

If you are involved in an accident, you have received much advice.

Walk very quickly away from this, I can smell it from here.

 

Anytime you work under 1099 with anyone, my comments will be the same as I posted.

 

If you plan on working for somone and then turning them into the IRS when tax time comes, then don't take the position. Just pay your own taxes like the rest of us. I have worked under a 1099 and prefer it to W2, but then I pay my own taxes. When I make an agreement I stick with it. I would never take a position paying 1099 and then get the government involved. Just find a company that takes taxes out of your check and gives you a W2 at the end of the year. If you are not responsible enough to save money out of your checks and pay your taxes, then stay away from anyone paying on a 1099. When you turn a company in for paying you on a 1099, when that was your agreement, rather than paying your taxes then you are evading your taxes.