Benifits For Your Drivers?

AgainstAllOdds · Mar 7, 2008

roadkill439342 said: ↑

If YOU control where the driver goes, what time to pick up/deliver...YOU ARE AN EMPLOYER.
Plain and simple.
Click to expand...

Really ?
Well , i am an O/O and leasing with a company and everytime i have a delivery , i got an appointment time to meet!!! Cannot be late or the load/pick up will be refused.( or i am gonna have to wait for hours )
Now , i have my own truck ( pay for fuel , repairs , taxes..etc etc ) but i still have to meet the deadlines. How do you call this ? Am i an EMPLOYEE ?

TX_Proud · Mar 8, 2008

Once you accept the load, you have to meet the conditions of the load. The point is you are not under forced dispatch; you can choose to accept the load or not. Under ideal conditions, you would be offered a number of loads to choose from.

SnOoP · Mar 9, 2008

It dont sound like "Mike" is breaking any IRS guide lines. Did he tell you what time your husband had to be at the truck, what time he had to leave etc? As the other guy said you have what are called appointment times that you as the 1099 driver have to meet like any project has deadlines that have to be made but as long as this guy is not telling you where and when you leave your husband is in control of getting to his destinations at his own cognessents.

If "Mike" did not tell your husband what time to leave, what time to leave the yard or tell your husband which roads to take where to fuel or what time to take breaks etc so far he is not doing anything wrong.

Also as another point was mentioned, your husband was billed for the tires, so this now shows he was responable for maintenance as this was brought up in an earlier post.

I am a small fleet owner with around 8 trucks and we have been 1099 our drivers for the last 10 years and we also have contracts that stipulate that they are a sole propitior etc and have never had any issue with the IRS as we are not doing anything wrong as we meet thier guidelines.

As for the pay situation, there are two sides to every story, and if your husband caused damage that could have been avoided, by all means this would certianly be a legit claim to deduct pay to cover the costs. We have been in this situation a time or two, it does not make a driver unhappy, but next time they will take the steps to prevent future issus if possible.

Another thing in the defense of this guy seeing that most of you are attacking him, is that it is very common for a O/O to 1099 their driver/subcontractor. I have not met an O/O thats running them as an employee, larger compines employe thier driver for many reasons, not becuse its thought to be against the IRS guidelines. The ability to provide beifits, workers comp, retirement direct deposite etc.

Pur48Ted · Mar 9, 2008

AgainstAllOdds said: ↑

Really ?
Well , i am an O/O and leasing with a company and everytime i have a delivery , i got an appointment time to meet!!! Cannot be late or the load/pick up will be refused.( or i am gonna have to wait for hours )
Now , i have my own truck ( pay for fuel , repairs , taxes..etc etc ) but i still have to meet the deadlines. How do you call this ? Am i an EMPLOYEE ?
Click to expand...

In some cases YES. Especially IF the company you are leased to DOESN'T give you a choice to pick between loads. If THEY DIRECT you which load to take, according to the IRS, you still may be considered an employee.

Pur48Ted · Mar 9, 2008

Blue wolf said: ↑

My husband actually worked for this guy BIG MISTAKE he did 3 runs over 3800 miles and recieved $396 He witheld $600 for tires that had to be replaced when driving on pure ice when his trucks brakes locked up and wore his tires at first he said it was ok don't worry about it 2 weeks go by my husband asks for his first check he was told he would not recieve his first check for 3 weeks needing the job he stayed 3rd week we get his first check for over a 1500 mile run he gets $125 and learns this guy is charging him for the tires claiming driver neglect which would be mechanical failure.this was during one of the storms in the truckstop he was stopped at over 37 trucks had to be towed.Then the guy turns around and removes all of my husbands possessions out of the truck and tells him to come pick his stuff up at a police station which some of his stuff was missing which he said he would give back when he felt like it.He also charged my husband a $100 for DS/Physical which was never discussed that my husband was paying for this.This boy needs to man up and do whats right.
Click to expand...

You live in Michigan?? That is ILLEGAL, violates Michigan Labor Laws. File a complaint as soon as possible. It can all be done online here:
http://michigan.gov/dleg/0,1607,7-154-27673-107123--,00.html

Pur48Ted · Mar 9, 2008

SnOoP said: ↑

It dont sound like "Mike" is breaking any IRS guide lines. Did he tell you what time your husband had to be at the truck, what time he had to leave etc? As the other guy said you have what are called appointment times that you as the 1099 driver have to meet like any project has deadlines that have to be made but as long as this guy is not telling you where and when you leave your husband is in control of getting to his destinations at his own cognessents.

If "Mike" did not tell your husband what time to leave, what time to leave the yard or tell your husband which roads to take where to fuel or what time to take breaks etc so far he is not doing anything wrong.

Also as another point was mentioned, your husband was billed for the tires, so this now shows he was responable for maintenance as this was brought up in an earlier post.

I am a small fleet owner with around 8 trucks and we have been 1099 our drivers for the last 10 years and we also have contracts that stipulate that they are a sole propitior etc and have never had any issue with the IRS as we are not doing anything wrong as we meet thier guidelines.

As for the pay situation, there are two sides to every story, and if your husband caused damage that could have been avoided, by all means this would certianly be a legit claim to deduct pay to cover the costs. We have been in this situation a time or two, it does not make a driver unhappy, but next time they will take the steps to prevent future issus if possible.

Another thing in the defense of this guy seeing that most of you are attacking him, is that it is very common for a O/O to 1099 their driver/subcontractor. I have not met an O/O thats running them as an employee, larger compines employe thier driver for many reasons, not becuse its thought to be against the IRS guidelines. The ability to provide beifits, workers comp, retirement direct deposite etc.
Click to expand...

If YOU own the trucks, you CANNOT "1099" a driver. It is ILLEGAL.

Misclassification of Employees
Consequences of treating an employee as an independent contractor. If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. See Internal Revenue Code section 3509 for additional information.
Click to expand...

Sec. 3509. Determination of employer's liability for certain
employment taxes

(a) In general
If any employer fails to deduct and withhold any tax under
chapter 24 or subchapter A of chapter 21 with respect to any
employee by reason of treating such employee as not being an
employee for purposes of such chapter or subchapter, the amount of
the employer's liability for -
(1) Withholding taxes
Tax under chapter 24 for such year with respect to such
employee shall be determined as if the amount required to be
deducted and withheld were equal to 1.5 percent of the wages (as
defined in section 3401) paid to such employee.
(2) Employee social security tax
Taxes under subchapter A of chapter 21 with respect to such
employee shall be determined as if the taxes imposed under such
subchapter were 20 percent of the amount imposed under such
subchapter without regard to this subparagraph.
(b) Employer's liability increased where employer disregards
reporting requirements
(1) In general
In the case of an employer who fails to meet the applicable
requirements of section 6041(a), 6041A, or 6051 with respect to
any employee, unless such failure is due to reasonable cause and
not willful neglect, subsection (a) shall be applied with respect
to such employee -
(A) by substituting ''3 percent'' for ''1.5 percent'' in
paragraph (1); and
(B) by substituting ''40 percent'' for ''20 percent'' in
paragraph (2).
(2) Applicable requirements
For purposes of paragraph (1), the term ''applicable
requirements'' means the requirements described in paragraph (1)
which would be applicable consistent with the employer's
treatment of the employee as not being an employee for purposes
of chapter 24 or subchapter A of chapter 21.
(c) Section not to apply in cases of intentional disregard
This section shall not apply to the determination of the
employer's liability for tax under chapter 24 or subchapter A of
chapter 21 if such liability is due to the employer's intentional
disregard of the requirement to deduct and withhold such tax.
(d) Special rules
For purposes of this section -
(1) Determination of liability
If the amount of any liability for tax is determined under this
section -
(A) the employee's liability for tax shall not be affected by
the assessment or collection of the tax so determined,
(B) the employer shall not be entitled to recover from the
employee any tax so determined, and
(C) sections (FOOTNOTE 1) 3402(d) and section 6521 shall not
apply.
(FOOTNOTE 1) So in original. Probably should be ''section''.
(2) Section not to apply where employer deducts wage but not
social security taxes
This section shall not apply to any employer with respect to
any wages if -
(A) the employer deducted and withheld any amount of the tax
imposed by chapter 24 on such wages, but
(B) failed to deduct and withhold the amount of the tax
imposed by subchapter A of chapter 21 with respect to such
wages.
(3) Section not to apply to certain statutory employees
This section shall not apply to any tax under subchapter A of
chapter 21 with respect to an individual described in subsection
(d)(3) of section 3121 (without regard to whether such individual
is described in paragraph (1) or (2) of such subsection).
Click to expand...

Brickman · Mar 9, 2008

SnOoP said: ↑

I am a small fleet owner with around 8 trucks and we have been 1099 our drivers for the last 10 years and we also have contracts that stipulate that they are a sole propitior etc and have never had any issue with the IRS as we are not doing anything wrong as we meet thier guidelines.
Click to expand...

One of the first tests of the IRS guidelines on whether or not a person is an employee or 1099 is who owns the equipment. Your "1099 contract" will not mean squat in an audit.
Snoop if you own the trucks, (sounds like you do) and your employees are not buying the truck from you then they are employees and its only a matter of time until you get busted by the IRS.

I hope your employees have all kept 10 yrs of tax records because you'll need them to prove tax has been paid. If not the tax bill the IRS hits ya with will most likely put you out of business.

I would highly highly recommend that you find a good attorney and CPA monday morning and find out for yourself.

TX_Proud · Mar 9, 2008

YIKES! I wouldn't want to be in Scoop's position! Brickman is correct, if you provide the equipment and/or tools for someone to do a job, they are an employee. Having someone sign a piece of paper stating otherwise is meaningless.

AgainstAllOdds · Mar 9, 2008

roadkill439342 said: ↑

In some cases YES. Especially IF the company you are leased to DOESN'T give you a choice to pick between loads. If THEY DIRECT you which load to take, according to the IRS, you still may be considered an employee.
Click to expand...

A choice ? We're trying to work here in this time of year and we don't have the luxury to choose...
Either you take that load or he doesn't have anything else...
What you're gonna do ? Stay home ? That doesn't pay your bills.
I have a blown up tire in my truck , my company won't give a rat #$$ about it because that is my truck and i am responsibile for it. I have a blown up in the trailer , i don't give a rat ##### because that is not my equipment.
And how am i an employee ? I provide my own tools to get the job done , i take care of my own tools to repair them and still i have to meet the requirement of the delivery/pick up

rookietrucker · Mar 9, 2008

I must say, this is a very good and interesting thread. So, If I understand this correctly. You go to one of these trucking companies out here. (Pick one, I don't care). Lease a truck from them and they 1099 you.
From what I read and got out of this thread. The only thing that stands between being as a contract driver and a company driver. Is the person has the choice of loads or no forced dispatch?
What about the rest of rules they govern on you as a contract driver? (i don't mean gov regulations either) Don't any of the rules they imply or stress on you, could be considered as a employee?
The only reason I'm asking is because. I did a lease for a few months. It sure seemed like I was a company driver/employee. Supposedly there was no force dispatch. But if you didn't accept that load, you would be put on the bottom of the board. Mixed in the with the company drivers. So what really separates a contract driver from a company driver?

Log in or Sign up

Forums

Find Trucking Jobs

Benifits For Your Drivers?

AgainstAllOdds Bobtail Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

TX_Proud Light Load Member

SnOoP Bobtail Member

Pur48Ted Road Train Member

Pur48Ted Road Train Member

Pur48Ted Road Train Member

Brickman Trucker Forum STAFF Staff Member

TX_Proud Light Load Member

AgainstAllOdds Bobtail Member

rookietrucker Trucker Forum STAFF Staff Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

Log in or Sign up

Useful Searches

Find Trucking Jobs

Benifits For Your Drivers?

AgainstAllOdds Bobtail Member

Wait, employers can't reach you!

TX_Proud Light Load Member

SnOoP Bobtail Member

Pur48Ted Road Train Member

Pur48Ted Road Train Member

Pur48Ted Road Train Member

Brickman Trucker Forum STAFF Staff Member

TX_Proud Light Load Member

AgainstAllOdds Bobtail Member

rookietrucker Trucker Forum STAFF Staff Member

Wait, employers can't reach you!