Employee status for driver; owner operator

You are an employee of the O/O, subject to policies of the company he has the truck leased to.

 

Lots and lots of reasons. The "fleet owner" is doing business as a company and the carrier is paying then as a corporation. As the driver you are an employee of the "fleet owner" and as such are being paid as an employee. I'm strongly considering buying a second truck and leasing on to a carrier. My corporation with be the on the lease contract and settlements will be paid to my Corp, but I will pay the driver as a W2 from my Corp.

Should I go into all the reasons why a fleet owner doesn't want to run under his own authority?

 

Who's YOU?

 

There is a simple sniff test. If the answer to both of these questions is yes, then legally one is an employee. 1) Does the employer control how you do your job? 2) Does your employer own the equipment?

Working for an o/o who is leased to a motor carrier falls in a grey area. Most times, you are dispatched directly by the motor carrier, and the o/o has nothing to do with your day to day operation of the vehicle. Those who control you don't own the equipment and aren't paying you, so you are not their employee either.

 

Make it complicated, we are big people here, so we can understand what you are trying to ask if you detail it with information we can use instead of running around a bush.

 

I'm still trying to figure this question out, I file a 1040. I have an S Corp, so any income or losses flew too my personal taxes. My company gets paid as a contractor or 1099 as you understand it.

Reasons for a fleet owner to not run under his authority/dot.
Insurance is expensive
Doesn't want to hire staff to manage back office
Isn't interested in chasing his own customers and doesn't want to run spot market only.
Doesn't want to deal with chasing customers or brokers for money
Doesn't want to dispatch all his trucks everyday

There are some good honest companies that work with fleet owners and it's a win-win for everyone. Maybe the fleet owner gives up 10%, so what? It would cost at least that much to run your own company, if not more. I personally know someone who has 15-16 trucks and they're all leased on to a company that he has a good relationship with. Only 2 of his trucks run under his dot # and that's for a dedicated run he has and he already had the trailers.