Best way to deal with 1099 and their quick pay settlement fees?

not sure....but how did you like those companyies i am looking at both of them to lease on to with my own truck and trailer

 

As far as the Quickpay is concerned if it is coming out like that at both companies then it sounds like it is the way they have it set up. Essentially they are saying that they paid you the full amount and after that you then agreed to "give back" 1.5%-3% of the rate in order to get it quicker. I agree it does add up over the course of the year. Most contracts do not specify that it would be done this way however most drivers probably do not care enough in the first place. Let me also state that I only agree to give one company a discount and that is to BNSF for a 1% reduction in rate for 15 days. I would have to check last years 1099 to see what it shows vs rates billed, etc...

 

I would guess you have to list all the income you received. Then take the quick pay charge as a deduction.

 

Schedule C Line 10 Commissions and Fees.

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

That's where I would be putting it.

 

yea i was just woundering if they had good miles and if want the advertise is even close to the truth....

 

You are correct. Quickpay fees are just that, fees and are deductions.

 

unless the co. lists the 1.5-3% as a line item on your settlement, you'll need to show the discrepancy on a load summary of some kind in case you're audited; even a handwritten entry on your settlement sheet is better than nothing(called "extemporaneous notes" by the IRS)