Do Mega Carriers Hire On 1099?

There is a lot of pending and settled class-action cases where carriers were found in the wrong for trying to get away with doing this very thing.

Maybe others here can post some links to these various cases

 

Not quite ... as an LLC you either file as a sole proprietor or as an S corp. If you do an S corp you must pay yourself a reasonable wage, that will be subject to employee taxes and income tax withholding. As a sole proprietor any monies left after deductions will be subject self employment tax and income tax.

As far as deductions. As an employee, other than per diem, you won't have enough to make that much difference.

Megas aren't going to want to touch your idea. They have enough trouble with employee classification lawsuits. Like someone said, go with a fly by night carrier that pays 1099.

 

Okay. Understood. This is further legal reason why they could NOT put an "independent contractor" behind the wheel of their equipment that does not meet basic requirements for employee hire. Imagine the hot water the carrier would be in if the trainee who crashed their truck and killed 4 other motorists was not even an employee of the carrier.

 

I wouldn't be surprised if his opinion of your "loop-hole" and your idea of it's legality are two different things.

Welcome to America.

 

Yes they were doing something wrong, they were misclassifying employees as independent contractors.

 

http://palaylaw.com/owner-operators/independent-contractor-or-employee-test/

 

Sam, this is an issue that has been covered in the courts and there is a clear difference between a contractor and an employee. In this business the driver as an employee can't refuse work but as a contractor, that is one of the requirement to being qualified as a contractor. So if you are employed by say x company as a contractor, you can refuse work.

This is one example of a few qualifiers. I would guess if you are paying $1500 per hour, then your lawyer would have handed you a rather good legal research paper on what the pittfalls and traps are. One thing I would assume he would tell you is not to do this because of the layers of liabilities involved industry.