1099 Company Driver?

Driving for a company paying 1099 requires the driver to be a little more savvy than a regular company driver. There are as many arguments against as there are for it.

The bottom line in my opinion,.. the only benefit to driving under a 1099 is if the company is paying above average to make it worth while for the driver to be on a 1099. Anything under $.50 CPM or 30% of the gross is not worth doing as a 1099. The company should share,.. if they are being cheap,.. then its not a company worth working for.

I have seen both sides of the 1099. I worked on the miserable side to get my foot back in the door. Then I found a much better company,.. still paid by 1099. But I gross almost $80k my first year,.. that was with only 12 months of (recent - (I drove heavy haul for 7 years,.. but had a 15 yr absence from trucking) experience.

No where else was I going to make that kind of money in the position I was in and be allowed to drive and run under my own terms and given full control of how the truck was operated. A year later I bought my first truck and leased on to the same carrier. I am still with them today.

So in my opinion, those that say dont do it,.. have never done it and/or only know those that have had a miserable experience with it. I have seen both ends of the 1099. I do agree,.. its not for the novice or inexperienced. You can get bent out of shape real quick driving under a 1099. W2 is a much safer alternative and probably better for someone who just wants a paycheck with out the extra hassles that come with being on a 1099.

Hurst

 

If you are a "contractor" and get involved in a crash, I would imagine the likelihood of having to defend yourself in court, with reduced help from carrier attorneys.
http://www.alllaw.com/articles/nolo/auto-accident/liability-commercial-truck-accident.html

Yes, I suppose there are a handful of situations where it may be in the driver's best interest to take a 1099 job, but these are few, and only if the driver has the self-discipline to pay their own quarterly taxes, properly. Independent contractors (especially in trucking) are well liked for state/federal tax audits. But like was mentioned, the money better be very good, and read the contract very well, and if there is no contract spelling out the carrier/contractor relationship, you better just avoid it altogether and find somewhere else to work.

And whatever you do, if you don't take anything else from this thread, and take the 1099 job, consult with a qualified tax person, and JUST KNOW, every dollar that is paid to you is submitted to the state and federal tax authority and they will be looking for tax reporting/payments. It's not a matter of if, but when.

 

You guys are kind of blowing this out of proportion. I am 1099. I make a average of $1300-$2000 a week. Every check I get, I set aside 25% for taxes and pay it every quarter. I keep all my receipts and claim every possible deduction under law. I have 3 dependants and tax time comes around I'm getting a nice refund. Going on 3 years now.

Don't have medical insurance but I talked to Obama the other day and he said he would hook me up. I'm 26 and never had any health problems. My kids are under their moms insurance and everything's fine.

I'm sorry what was the question?

 

do you dunk your donuts in your coffee...??

 

Only do it if you have trouble getting a job somewhere else. Just work there until your record clears up, keep your nose clean then in 1-2 years move on. I emphasize to keep your nose clean because anyone paying 1099 is going to tell you to run illegal. So you need to be a tough person, stand your ground and tell them to back off.

Another important thing you want to do is come up with a plan, and execute your plan. This wil help you keep your eye on the prize.

I worked 1099 for 1 year. It was tough im not going to lie, but i knew what i was getting into. My record cleared up and now i haul gas locally, w2 home every night.

Just my 0.02

 

Hurst... if I could thank your post 3 times i would. While it's not for everyone it's not a black or white, good or bad issue. As with everything there are grey areas. Glad a Mod taking the time to give perspective on the positive side of the issue.
Thanks, Mark
.......living somewhere in a grey area

 

Just remember that self employment tax is 15.something %, and add to that federal AND state income taxes. You should buy your own worker's comp and disability insurance, for another 10-15%. No unemployment benefits, no health, no retirement, no liability insurance.

Nothing wrong with 1099, just know that you better make a LOT more, as in 30 to 40% more than a pay stub before you break even.

 

http://www.bizjournals.com/sacramen...king-firm-gets-run-around-on-independent.html

Hendrickson Trucking wound up in bankruptcy after getting caught doing the 1099 thing...

 

What money is being put towards you SS?

I did 1099 for a couple years never again...

Im guessing your company claims your an "independent" but yet pushing there truck down the road... Like the post a couple spots above stated wait until you get in a wreck.... The fun for you will begin...

What are they paying you if you care to share?

No insurance but you talked to Obama... LOL sad sad sad