1099 as a company driver.

Whether or not he ran under their DOT and MC numbers is not the determining factor of employee or contractor status. O/O's and lease purchase drivers run under a company's authority but they really are independent contractors. What makes him an employee in this case is he drove their truck, they paid for all expenses, and they dictated all work to be done and how it was to be done.

 

I guess you pay 1099

 

You wouldn't had to fire me. First, I probably would never gone to work for you and second I would have told you where to "stick the job".

 

I thought the exact same thing when I read his response.

 

I believe it's supposed to be illegal. I worked at a place way back when I got out of grad school and they paid cash and gave me a statement with it. Back then I didn't really have an idea what that 1099 crap was, I just pocketed the cash. When it came time to get me taxes done I called the IRS and the sent me a questionnaire. Needless to say they went after that employer.

 

Nope w9 all the way, workman's comp the whole nine yards.

 

Well now, I am going to work for a company that has 8 trucks and I will get a 1099. Personally, i am ok with that. The #'s fit for me and I plan on using this experience, of me having the responsibilty for covering my own butt, to teach some of the things i will face as I become an IC. Honestly I am looking forward to it. This is the beginning of a five year business model to get me totally debt free BEFORE I become an IC. My credit is bad because of a failed motorcycle shop that i barely made it through the year lease of the building. I wasnt prepared for all the other stuff involved in the business. i am a good mechanic, but every factory shop is full of good techs too. i have a good driving record and the owner is excited to have me. In 6 months we renegotiate. This business will be more like a partnership to me. He gives me the responsibility of taking care of his investment, and in return i learn how to take care of some of the other responsibilities besides driving. I'm looking at a win-win for me and for him. My 2 cents

 

But, if you receive a 1099, you're already an IC or at least considered to be one from the person(s) paying you without taking out all the necessary withholdings required by law, then again, I think you already know that

One of the biggest traps guys fall into going the 1099 route is not setting aside enough money to pay their quarterly federal & SE tax, including their State tax. Doesn't take much to find one's self pretty deep in the hole with owed back taxes, penalties & interest.

 

right . I am already a subcontractor in the construction industry and have been for years. I don't know if i am correct in my thinking or not, but i will consult a cpa to make sure i cover my butt. My budget already has the figures in it to cover the taxes. It is a matter of discipline. Simple but not easy.

 

I would recommend you get a copy of the ICA from the company and have your cpa review it. It goes without saying that most of these 1099 guys are shady. If he is, there's a reason why he's "excited to have you."