1099 Status BUT:

Stay away from them,..At the very least, You will end up with as many tax troubles, but more likely, if they cannot afford to pay proper taxes on employees, do you really think they can afford to pay YOU?

When companies resort to this kind of thing, they are almost always already in financial 'Dire Straits', and will drag their employees down the pipe of financial ruin with them. Do you really want to end up there?,...What if they decide to claim you made 100k more than you actually earned?,...Who's going to pay the taxes on that?

http://www.irs.gov/Businesses/Small...ndent-Contractor-(Self-Employed)-or-Employee?

 

There is nothing illegal about working under a 1099. Many companies pay this way. The down side is that you will be responsible for paying your own taxes along with the self employment taxes. Those are what the company usually pays. It amounts to about 7 1/2% of your pay. As an employee your employer pays about half of your social security taxes. When you work on a 1099, you pay the tax. Many of the companies who pay on a 1099 offer higher pay to offset the extra tax. Working under a 1099 you will also be responsible for providing your own workers comp or an occupational accident policy in case you are injured on the job. That costs you about $140-150/month. Some carriers who pay on a 1099 do offer much more flexibility in where and how you run the truck and where you run. I have worked on a 1099 and prefer that to a W2. Some may try to tell you that it is illegal to work under a 1099. but it isn't. As long as you pay your taxes it works just fine. In fact, there are some advantages to working under a 1099. If you are someone who is not responsible and needs someone to withhold your taxes and write a check to the IRS, then you may be better off working on a W2 and have the company pay everything. Keep in mind that the more a company does for you the less they can afford to pay. There is nothing shady about paying on a 1099. I am one who believes that we would all be better off working under a 1099. I guarantee you that people would not be so willing to pay such high taxes if they had to sit down and write a check to the government themselves. You don't miss what you don't have and most people have no idea what they are really paying in taxes when the company pays it for them. One other thing, when you get money back at the end of the year, you are paying too much taxes. You essentially make the government a tax free loan. When you work under a 1099, you pay your taxes from your actual NET income. As far as claiming you made more than actuality, that isn't going to happen. It never happened to me when I worked that way and I have never heard of anyone who has had that happen to them. You are given a settlement sheet every time you are paid so you have a record of all earnings. If there is a dispute on that amount, it is up to the company to provide proof of what has been paid. If a company claims that they paid you more than they did then that is fraud and the IRS could become involved at that point. I prefer to think that most companies are honest with people. If you are not comfortable working under a 1099, then don't do it.

 

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Defined


People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.

Yes there are some companies that hire independents legitimately, but when they control everything you do, and provide all equipment/fuel.etc,...you are an employee, weather they say you are or not. This can get you into a very sticky situation that I have seen many people in trucking end in before.

If it is a small company, be very very cautious in what they define as a contractor vs an employee. Know your place among them and know it well if you plan on dealing with them.

 

If you work on a 1099, you need to be putting back at least 20% of your pay to pay your taxes. Not planning for their tax bill is what gets some who work on a 1099 in trouble. They then want to blame the company for their failure to properly plan and pay their taxes. There can be some real tax advantages to working on a 1099, but you need to sit down and do some planning. Don't spend everything you make and then blame the company for your failure to save or put the taxes back.

 

Are you covered for damages to truck, trailer, anything you hit, or freight as a 1099? These would be covered by the company if you were an employee. As an independent, can you refuse loads? Do you need to ask for home time off? Any bonus in place of paid holidays? Detention pay? Can you afford ObamaCare on your pay and still be able to buy food? Lots of unanswered questions here. Make a good list of things to ask at interview.

 

This is just my case I'm not trying to start an argument,
1) If the damages(to the truck or trailer) are MY fault I have to pay 1/2 of the deductible, if its someone else's fault then then our insurance goes after them.
2)If I hit anything I have to pay 1/2 of the deductible on personal PROPERTY, but any personal injury our insurance does not have a deductible. But our insurance DOES NOT help us in a civil case, and a company drivers insurance can't protect you from civil action either.
3) Our cargo insurance covers any damage to freight caused by our negligence.
4) Yes I refuse low paying freight regularly.
5) The only condition on home time is that I pay half the fuel to get there.
6) I only get 3 bonus's; 100.00 a year for every year of loyalty, 100.00 a year for every year I don't crash his truck, and I get 50.00 for a clean DOT inspection on the tractor.
7) I get 100% of the detention he is paid.
8)I can't answer the Obama-care question because I can't find anybody that can tell me what it is going to cost exactly, please don't try to explain your interpretation of medical reform, The only place I've came close to getting any answers is OOIDA and they are still learning and don't have all the answers, but at least they were honest enough to admit NO ONE knows yet, and did not offer their political views.

 

The costs for obamacare are supposed to be made available in October. As far as I know, it is companies who have fewer than 50 employees or those who gain favor with this administration to extract an exemption or members of congress and the white house are exempt from the law. At least that is the last that I heard. At this point, obamacare seems to be collapsing. Time will tell. At this time the individual mandate is still in place. If you don't have access to insurance through your company you will need to provide it for yourself. There is also supposed to be a subsidy for anyone who earns less than 4 times the poverty level. It takes time to read through a 2,800 page bill. In any case, it has little to do with whether you are paid on a 1099 or W2. Being paid on a W2 doesn't assure you that you will qualify for employer paid insurance. We go back and forth on the 1099 issue. It has been discussed on a number of occasions. It boils down to personal preference. If you work on a 1099 then make sure to put at least 20% for taxes. If you are paid on a W2, then don't worry about it. Although you should still be saving money back. Regardless of which way you decide to work, it is your business. Do what you feel is best in your situation.

 

I am curious about this as well. Considering obtaining another truck and hiring a driver for it. Need to know if 1099 is OK to pay this driver who will be using my truck and fuel card. He will have autonomy with choosing his own routes, loads, fuel stops etc. just that he is using my truck.