1099 Company Driver?

So you are paying the full 15% + into OSDAI and Medicare? Because when you are a W2 employee you are only paying half of it.

 

I think you are over complicating the 1099.

Also... I for one am not relying on SS for retirement. I've already got enough in it where I could go on disability now and get $2200 month in benefits.

I personally need more than $2000 - $3000 month to retire on. I like nice things.

Hurst

 

I has nothing to do with relying on SSI for retirement. I have over 1.2mm in 401k's from 20+ years in banking before getting my CDL. Unless you are a railroad worker or teacher you are required, by law, to pay into SSI.

As far as overcomplicating it, try explaining it to the IRS when all these 1099 guys find out that they aren't even close to qualifying as an "independent contractor" I have seen more IRS liens on bank accounts for exactly this reason than I care to remember. Not to mention liens on peoples homes and personal property.

 

if your paid on a 1099 you have to pay self employment tax = 7.5 % on a W2 you don't have to pay that

 

1. He will have to file quarterly taxes.
2. He will have to pay his own FICA tax at 13% instead of the employee rate of 7.65%.
3. The IRS rules say you have to have your own equipment to be an independent contractor on a 1099.
4.. He will not qualify by IRS rules to be an Independent Contractor.
5. He will not have any Workers Compensation if he is injured on the job, unless he goes out and buys it himself.
6. He will not have any unemployment insurance if he is laid off, as his earnings will not be reported as wages to the state.

I would not do it. The company could easily find a payroll agency to process him as a W-2 employee, and then all the drivers would be paid in accordance to the regulations.

 

The Most Interesting Man In the World on 1099 company drivers......