1099 Status BUT:

Please don't anyone make a mountain out of my ObamaCare joke molehill . I was just asking about health insurance in general. Please don't hijack luvtotruck's thread over this.

 

My litmus test is this ... if you are responsible for paying the note, rent, utility bills, making insurance liability purchase decisions, and making larger future capital purchase decisions, etc. then you are a prime candidate to operate under a 1099, otherwise you should remain the employee of a company who pays on a w2, to protect yourself. But do what you want but don't come crying to us here when the crap hits the fan at tax time.

I understand the appeal of a guy who owns a few trucks and want's them running and making money to "hire" "independent contractor drivers" to avoid all of the red tape, employer requirements, and legal ramifications, especially in today's world. But to my way of thinking, this is shirking financial, tax and legal liability off to those who can least afford to deal with issues if/when they come up.

If you want to "sell" them a truck on some sort of agreement to where they can accrue value in the vehicle that is theirs to keep and run it as they see fit, that's fine and you should by all means then provide a 1099 to those contractors.

An interesting read here which can seem beneficial to both parties in such matters but I still don't like the idea of "contractor employee" especially if you are on the working side of the contract.

Federal regulations eliminate independent contractor defense in interstate trucking


But this deals in interstate commerce. There have been numerous cab drivers (independent contractors) who were financially ruined due to an accident.

 

Old School. Your driving some persons truck. Your an employee. They employed you to drive their truck. You agreed. Wages are a different matter.

 

As long as the driver is OK with it, then there should not be a problem. I would suggest that you put a contract together outlining who is responsible for what and the terms of your agreement including compensation for the driver. There are guidelines that the IRS provides as to how you should classify a driver, but trucking has always been a little different animal when it comes to labor laws. As long as you and the driver agree and he understands that he will be responsible for paying his own taxes, then it should be a non issue. I know a number of owners who pay on a 1099.

As far as insurance is concerned (i.e. - Obamacare) everyone is supposed to be responsible for paying their own insurance unless your company has at least 50 employees. In that case, the company is supposed to either provide insurance for the employees or pay a fine/tax. In most cases it is cheaper for the company to pay the taxes.

 

The IRS does have rules or guidelines concerning independent contractor classifications. A rule is NOT a law. The IRS does not have the constitutional authority to make their own laws.

 

Hijackings will happen on this forum! It's an art form around here!

Companies with less than 50 employees have never had to provide health insurance.

 

I don't know of any companies who have been required to furnish health insurance to employees prior to obamacare. It is a benefit that some choose to offer, but has never been mandated by law......until now. As time passes and more companies are given waivers and even congress has exempted themselves, the bill appears to be crumbling from lack of participation. Health insurance has always been a nice benefit, but when it is required by government mandate, the quality of the benefit is likely to diminish considerably from the FREE market. We are getting a little sidetracked, but it should not be up to the government to decide how I run my business, whether I provide health insurance or pay on a 1099 or W2. This country does much better when the free market works. It isn't working very well right now.

 

Companies with under 50 employees have always been exempt from regulations/rules like FMLA, etc . . . other things apply to all. Health insurance may not have been mandatory, but plenty of other things are for employers with over 50 full time employees.

I agree that we do much better when the government butts out of our business and lets us do our thing . . . within reason . . . too much stuff being crammed down everyone's throats these days.

 

I would suggest you stay away as well.

If you go with them and have problems with the IRS or injured, come to this thread and contact those that think it is okay and then get their legal help.