working for a "mom and pops" trucking company

Nice charts and the math all appears to be correct ... for what it is. But if you are going to make adjustment in net income for taxes then you have to go all the way ... the fundamental difference between a 1099 income and W2 income is how derive gross. All W2 is gross and FICA applies to all income ... on the other hand 1099 income is declared on Schedule C. Only the income left after adjustments, that is carried over to Form 1040, is considered gross and FICA applies to that income only, not the original gross ... But look at this way. The IRS goes after employers improperly paying on 1099, not because the employee is paying the taxes instead of the employer .... They go after them to get the revenue that is lost due to the over all decrease in taxes. Not just what the employer is not paying, but what the employee is no longer paying as well.

 

How do you have "benifits" when your paid on a 1099? What kind of bennies? Legally they can't offer healthcare to anyone thats not an employee and employee's arn't paid by 1099. just seems odd.

 

I wonder if the OP is a little confused (he is new) maybe he's driveing for a O/O thats leased to the HUGE ma&pa company? That could be happening and he just might not know. Ma&pa could even be working together with the O/O and they all save money at the expense of the "new guy".

 

No, I shouldn't 'go all the way', there is no feasible way that I can.

I am not considering NET-income on purpose because we all have different calculations to derive our own net-income from operations; some of use have shiny new Peterbuilts, some of us have 1980s Macks, some of use have a litter of kids, some of us have three ex-wives, some of use have two residences, some of us live in high tax states and counties (like Illinois-Cook County), I am broke so I have no tax liabilities or write -offs, etc etc...

Also, technically, FICA/Medicare only applies to WAGES. An individual's tax return may have other elements to make up his Gross & Adjusted Gross Incomes. Those of you getting investment income from your rental properties or royalties for you county-western songs or living like a fat cat on municipal bond interested should not be paying FICA/Medicare tax on these amounts. If you are, fire your tax preparer .

Again, given how so many of us have unique deductions, there is no feasible way to calculate net income for the masses that read my post. This is why I purposely used the Gross Amounts. Each individual will have to either calculate their own net income or have another party do their bidding.

I only have twenty-four semester hours of Accounting Classes and an Accounting Degree at a Top 50 accounting department at a university (at the time), so this is one area where I can be an expert on a Trucking Forum.

 

Some companies offer to pay 'Occupational Accident' health insurance [[OAHC] to take the place of Woker's Compensation. This is a 'semi-cover-their-buttocks' in the event there is a claim by the 1099'er. Yet other companies offer OAHC but bill the 1099'er back for the premium. As a courier/messenger in Chicagoland, I often paid $25-30/week at some places I contracted at for this insurance which some weeks was 10% of my gross check.

 

let me find it and I'll post it been busy...I have it saved

 

He's retired army, so he has VA benefits.

 

Can you please just use a standard color. Probably have some good points but the color makes it hard to get past a line or two.

 

True that.

I work for what could be considered a "mom&pop company". We have 12 dumps and 3 tankers. The office staff consists of the owner, the original owner, a dispatcher, and an AP/AR/payroll girl. We are not paid on a 1099, have better benefits than most major carriers, and are treated almost like one of the family. I've been there for a little over a year now and I love it! I did make the mistake of leaving when our water hauls got slow. This was no fault of my employer, but the customer we service. I was gone for 3 weeks but had an issue with the company I joined and left rather abruptly. My former employer not only brought me back on, but made it so that I didn't lose any of my benefits or vacation time. Other than the fact that I lost my dedicated run (can't fault them as they needed to hire a replacement) and am now more of a floater, it was as though I never left.

Bottom line, if you can find a good "mom&pop" company, you will have the best job in trucking that you can possibly find. Had it not been for the slowdown, I would have never even considered leaving them in the first place. Now that I'm back, I'm not leaving unless they cease operations.

 

that depends on the company,150 trks may not be bad but try a carrier with 20 trks.Pay is bad and equipment is even worse.