Paying a driver on a 1099

I didn't say that you were doing anything illegal. It would depend on the facts and circumstances of your particular situation as to whether you were an employee instead of an IC. I'm just saying that having survived an audit doesn't mean that the IRS has signed off on everything as being OK.

However, the part in red above would indicate employee status. Employees have bosses. IC's don't. But that is only one of many potential factors.

 

I've consulted with tax professionals who did my taxes last year. They were not cheap either, especially considering I only made $36k last year. There is nothing illegal with how I am paid or how my taxes get paid.

EDIT:
My "BOSS" as I like to refer to him,.. he owns the company, Its his truck, I get dispatched by his dispatcher. But the "BOSS" portion ends there. I will still always refer to him as my "Boss".

This is what I am responsible for as an IC.

I get a txt message with basic load info. Where it is, what it is, weight, length, if over size, how many miles its paying and it will be accompanied by a broker or shipper's phone number. At that point I have the option to call the broker/shipper to get the rest of the load info or I can refuse it for what ever reason I choose. Be it that I dont like where its going, I dont feel like doing a tarp load, too short of a run, or I just feel like being lazy and taking a siesta. What ever,.. my choice.

Fueling. I have a company fuel card. I fuel where ever I choose. He prefers Fly J and Pilots as they offer the best discounts and fuel rebates for him. But still go where I can find cheapest fuel if they are not available. I have had to use my personal credit card to fuel the truck because I couldnt find a place that took his EFS card and feared I may run too low on fuel trying to continue on. I've never had a problem being reimbursed for anything.

Repairs. I am responsible for keeping the trucks PMs up to date. My choice where I go to get it done. Repairs are the same. If the truck breaks down,.. I call for tow truck or road side service or if possible limp the truck to a facility. I choose what tires to buy, I choose what gets repaired and where. I wont go to a dealer for something as simple as a radiator drain plug that blew out when I can call around and get shop rates and find someone who will do it cheaper. Once I have a final bill for the repairs,.. I call him and he takes car of it. Simple minor things, even bought 2 new tires once, if its late at night like 2 or 3am and something like an Alt belt,.. I will pay for out of my pocket and then get reimbursed later.

Home Time. I choose when I head home. I am asked to stay out at least 3 - 4 weeks. But I still have the option to go home any time I want and stay home for as long as I want. I typically stay out on the road for 5 - 7 weeks and when home I stay home for 5 - 7 days before calling to ask for load info.

Now you tell me,.. am I a company driver?

Hurst

 

The IRS doesn't care at all if a "tax professional" said it was OK. The only thing they care about is the facts and circumstances surrounding your situation.

If you would like to post some additional information about your employment situation, I could give you some more info.

One question. Do you own your own truck, or do you drive your Boss' truck? If it is your Boss' truck it is VERY unlikely that you are an independent contractor.

 

See edited post above. ^ ^ ^

 

Yes. You are a company driver, albeit one that has apparently earned the trust of his employer. You have no financial stake in the operation beyond your pay.

 

He wants me to buy a truck from him.
This is the second truck of his I've been in. First was a problematic 08 Peterbilt 386. I loved that truck. But he wanted too much for it and as I stated... the C15 was very problematic,.. mainly due to emissions issues and actuator issues. I loved everything else.

I am in an 05 Columbia right now. Same engine,.. but no regen or DPF filter in this truck. This is a money making truck. 6 mpg, he only wants $22k for it. Very reasonable. I just turned 1 million miles on it last month. Still trouble free. Problem is that I just dont like it. The motor feels tired compared to the Pete,.. its a 10 spd truck and I hate shifting it especially on hills. And well,.. the truck is pretty much showing its age and mileage. But for $22k I wouldnt expect too much more.

I am in the market for a truck. I have more than enough cash to buy one and get my own authority,.. I just havent come across the right truck yet. I refuse to rush into it. The right truck will present itself to me eventually.
And besides,.. I like my current working conditions. Why be in a hurry to take on more work and responsibility when I am content with how things are? Eventually I'll take the plunge. Maybe next summer. Who knows.

Hurst

 

Be what it is,.. I prefer how things are. I feel I have the best of both worlds with out the risk.

Has worked out well for me so far.

Hurst

 

the only way it is legal to drive a truck and get paid a 1099. is that you pay for the fuel. there was a big discussion about this on xm radio. they had attorneys on there talking about this. if you get caught getting paid like this. there is a heavy fine that you will have to pay. you can get away with until you get caught by the IRS.

 

Well,.. I do paper logs too. So I guess they will have to catch me.

Hurst

 

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We have the winner! This is fact! This is all this thread is about. Thank You and Good Night Elvis has left the building!