Feel cheated by 1099

Where do you get 7-8% decrease and costing 3 times as much?

 

That 3 times number includes all the extra litigation, workers comp, and unemployment. I would say for a good employee, that Is a gross overestimate, but very far below what a bad employee would cost.
So I can see why employers love it, and why a responsible, hard running driver would. However, the issue is they need the extra compensation to make up for the extra risk, which most employers don't provide. On top of that you run into real risk vs employees perceived risk. Most drivers feel they are responsible, able to keep track of finances well enough to handle taxes, and able to carry enough insurance to make up for 1099.definciencies.
It is just so risky, and there really isn't much reward. Company Drivers can already write off more than most employees. We have one of the lowest tax burdens In the country. If you want to withhold all your money and pay at the end of the year, you could just claim a lot more and hold a few thousand in a vanguard account.
Also all the benefits self employed people have, can be had by anyone. Buy a rental property, and you own a real estate business. He'll you could just buy #### off eBay, and sell it for more. Classify it as a business, and as long as you turn any profit three out of five years you have all the same benefits of a 1099 employee without the risk.
Bottom line, you are taking on a lot of risk. For a reward that isn't that great, and could be had in much safer ways

 

What extra litigation?

If you are dealing with legal issues, then it isn't rolled into the payroll of the company but from the bottom line.

 

Good luck not gonna happen. You signed a contract 1 and 2 these people gave you work if you don't like it move on. Move on, on their good side so they re hire you if all goes down the gutter for you down the road.

 

However a company does their accounting is irrelavant, it's all coming out of the same pot. If an employee has less legal protection, that is a cost savings to the company. As such the employee should be compensated for the extra risk.

 

3 times is a blanket number used as a rule of thumb so a physical cost can be attached to the body and the burden placed in a budget. True exact numbers are somewhat different based on industry.

On the percentage number ( varies by state ) all the deductions you see on your check like FICA etc are all matched by the employer. He has paid half that number whatever it is....when the hand is 1099 then he pays the entire share plus SE tax where applicable.

There is a very clear definition complete with sniff test on the IRS web site plus any CPA can also tell you if you are IC or not. Truckers that just drive for someone 1099 and many LP deals don't pass the test. It's all about the level of control the carrier has over you. Drivers who bring a fight in this arena will generally lose the battle even if they are 100% correct by law. The carrier is doing this to save money / increase profits. He will simply invite you to move on if you don't like his deal.

JMO

 

Contracts or not its illegal... Heck California won settlements against brokers who gave loads to one truck owner ops and somehow classified them as employees .. Im with others move on if they are crooked this way how many other ways you getting gypped

 

Not so in Michigan you can not sign away your legal rights. He is an employe and the SCOTUS says so.

 

Someone said on here that if you signed the 1099 you can't file W2. That may be true.

Why you do is, you file form SS-8 and describe in what ways you are treated and the IRS will determine what you are.

Just Google it. And you can down load the form.
Your company will end up paying your taxes.

 

i was about to. whats up with them?