1099

It means you are being treated as a 'Independent Contractor' so they don't have to pay benefits or take taxes out. Be careful, it's a good way to get in trouble with the IRS. You have to pay the taxes yourself.

 

Pretty much you get paid with no deductions. Then of course, you are liable for your own taxes.

 

Unless you truly can independently run the truck as you see fit and have some financial responsibility they are paying you incorrectly on a 1099. A 1099 is not legit if you are just the driver.

 

Just bad, all bad.

 

and pays well????? What do you considered well? If it were 85 to 99 cents a mile, i might consider it. Otherwise, it ain't worth it

 

1099 pay is a way for lower-quality companies to apparently boost their pay to naive drivers. An employer paying the same amount out of his pocket, none to the feds with all going to driver, the driver sees an amount abuot 30% higher than a company driver being paid by his employer on W-2 and taxes paid on his behalf.

There are legitimate 1099 companies but in my experience the worst employers in my area hire drivers fired or ineligible for better companies and they use the 1099/pay-raise scheme.

BTW, NEVER screw the IRS. They will find you and take their pound of flesh. I'd rather steal money from the Mafia. The Mafia can be reasoned with. The IRS will wait until the interest and penalties are maximized and then use the weight of the Federal govt to take whatever they want.

 

Wise Man !

 

If you are on W2 pay, you'll pay 7.65 in social security tax, if you are on 1099, you will pay 15.3 social security tax, you wont have workers comp or unemployment insurance as you would on W2 pay.

As already stated, you don't want to get IRS after you, they will make your life miserable because they can freeze every account you have until you pay what you owe or til you prove you don't owe it. They can also Garnish your wages. Best to pass up 1099 companies. I worked for one when I was young and stupid, will never do it again. Took me about a year to prove I didn't owe the taxes.

 

If you own the truck, then you would likely be eligible for1099. If you do not, then the irs rules say you are not eligible for 1099. Simple as that.