Trucking on a 1099. The real story.

guess while i am at it....what about accidents and stuff like that ..do they throw that on me too.... can they say i am my own entity and throw me to the wolves? i mentioned occupational insurance..that they wont let me see...been asking to see it...should i keep asking?..as bad as this sounds my license is the best thing i have going and my score is 0 on CSA and no problems in ten years on regular license or 2 years on CDL...i only have about 4 months experience 3 months was with another russian mafia outfit that went under owing me a lot of $...i know my past is my problem but im trying to do the right thing...i hate gambling with the one thing good i got..should someone like me just shut up and be happy i got hired and just get that year i need to move on?

 

Making you run illegal just sucks. There is no other way to say it. I would be looking for another job but don't quit until you're sure. Heck there is even a story here on TTR about someone who quit and then the new place changed their mind and the old place wouldn't take her back. So be sure.

 

No there wouldn't be more unemployed drivers out there.
Trucking doesn't and will never generate jobs.
We haul what manufacturers/importers/exporters/sellers offer us to haul.
If all trucking firms were forced to stop using 1099's then there would be more drivers hauling under W2's.
In fact those that couldn't find a W2 job and were "forced" to take a 1099 job because off their past, would most likely find it easier to find a W2 job if 1099's were no longer used.

What i find strange is that so many on this forum attack leaseprograms but defend 1099's.

 

I know you guys are talking mostly about ( company) drivers. But as DY said there's not one l/p or even lease on your truck program that meets those criteria .....( not even Schneider's choice)

I've always said saying no (turning down a load) isn't being in business ...


If you don't have your own insurance /authority and can haul for anyone you want to..... Your a glorified company driver.....

But what do I know......

 

So let's back up a bit with this - what exactly is a company saving by paying on 1099 vs. w2? 6.5% of the drivers' pay, plus fees to their payroll processor? 6.5% would be $3250 saved for each driver that grosses $50K annually. That seems hardly worth the IRS risk. Am I missing something here?

 

Workers comp , unemployment ins and health ins at least......

 

My costs for 2015

FICA .062
Medicare .0145
Comp .081
UMC .0287(first 14K payroll)
FUT .007 (varies on your states borrowing from the feds)

A sub-contractor that has to abide by the contractors, federal, state, local rules or safety regs doesn't make them an employee. I.E. You hire a contractor to paint the inside of your house and a condition is only painting while you are at work doesn't make them your employee.

 

Your example doesn't equate to working essentially as an employee driving a truck and getting paid on a 1099. The painting sub-contractor is getting paid by numerous customers and has a business license, bond, etc. You aren't telling him HOW to paint, nor teaching him how to paint. You hire him to do a job, and he is is free to do the job the way they see fit to meet the requirements of the contract. The sub-contractor is free to go get "employment" from any other customer, bids on each job, can refuse to do your job, and can't be "fired".

None or few of those conditions are met with a typical truck driver getting paid by 1099. They CAN be fired, are sometimes trained or taught how to drive for the employer, aren't free to refuse a job or drive today for another employer, and don't bid on today's job. SOME drivers that are paid on 1099 have more autonomy, finding their own loads with brokers and making their own decisions, but those seem to be relatively rare.