It sure sounds like you would turn in your clients. I don't know ethics that preparers must deal, but I do understand ethics and when someone is commissioned to perform a service, they should not have to worry about those whom they contract with will turn them in to the IRS. Things are either right or wrong. It has little to do with the profession. If you don't like the way the client handles their business, just don't work for them.
Paying a driver on a 1099
Discussion in 'Trucker Taxes and Truck Financing' started by Oscar the KW, Nov 26, 2013.
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The guidelines said that if they drive a truck that I own, haul loads primarily for my customers (not their own contracts), they can not set freight rates (I do) and I pay for maintenance and repairs then they are indeed employees.luvtotruck and Roadmedic Thank this. -
If they are not in agreement the return will not be prepared by me.
I will not be exposed to preparer penalties or ethics violations. -
I've been driving as a 1099 contracted driver for 2 yrs now.
Neither I nor my boss (Who has been audited) have had any issues over it.
I registered for my EIN as sole proprietor and I have a DBA as well with my bank.
Its works well for both parties as long as everything is understood and agreed upon from the onset.
I pay my taxes quarterly, just like any other business owner. Actually my wife handles that end of it. I take out 27% of my gross and it goes into an account that my taxes are paid from. Last year (My first year filing as 1099) I got back $2300. This will be my second year filing. I save every single receipt and expense I possibly can to be used as a write off. Be surprised how quickly things start to add up.
If it were illegal I think I would have had a problem by now.
My boss benefits by paying less taxes and no workmans comp.
I benefit by getting paid a higher rate than I would have gotten by a company doing everything by the book.
I will have grossed almost $80k this year. Tell me any other company driver with under 2 yrs 'recent' experience that is making that kind of money?
I agree,.. there are company owners taking advantage of people by putting them on as 1099 and paying/treating them as a regular employee. Those cases the company owner should indeed be shut down.
HurstG/MAN Thanks this. -
Emplyers, if you are paying drivers as IC's and they get re-classified as employee's, YOU bear 100% of the responsibility, and you will face 100% of the pain. You will pay all unpaid employment taxes for the time period that they were mis-classified. You will pay interest and penalties on the amounts owed, and you will be responsibly for those employees income taxes, if they haven't been properly paying them through estimated payments.
Again, the employer bears 100% of the risk. And it can be VERY costly. While you may have gotten away with it in the past, that is no guarantee that you won't get caught in the future. -
If someone is incorrectly classified as an IC, and they don't pay any of their taxes, it is the employer who will get in trouble, not the employee. They employer is a withholding agent and has failed to properly withhold and remit taxes. The employer is on the hook for 100% of the taxes, the penalties, and the interest. -
It IS illegal if they are in fact an employee instead of an IC.
You really need to stop talking about things that you don't understand. You couldn't be more wrong about this. -
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My taxes are paid,.. I am well paid,.. my boss has a happy driver who respects his truck and company. All I see is win win.
Hurst
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