Hi first I would like to thank all the guys out there commenting on the forum which have unknowingly helped me pursue the industry and filter through companies over the course of the last month. I've been reading the forum for ages and finally have a few questions.
After finishing my course last week I found a place for employment which meets my requirements but I'm not sure about the 1099 vs w2. My question is simply. I was offered the same amount cpm to run either w2 or 1099, to my understanding the only benefit for them is not having to pay their obligations as an employer, is this true? Of course I would pick the w2 unless I was offered a substantially higher pay in my favor, but in this case the cpm is the same. Shady?
Another question concerns training. After taking me for a road test and being confident in my driving they offered the position to me getting paid a standard cpm from the beginning while shadow driving. This obviously is not the norm since I'm here asking but is it unheard of? I'll be following a lead driver in another truck doing mostly freeway driving to larger terminals and since I feel confident and quite happy about not having to share sleep space or team drive while training, I'm more than happy as you can imagine. Though thinking from a company standpoint, this seems like a huge liability.
recent cdl questions
Discussion in 'Questions From New Drivers' started by betatrucker909, Mar 1, 2018.
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Well 1099 means you are a contractor and no taxes withheld in pay check. You pay your taxes in April. so you need to put aside that money weekly. The shadow driving is fine. The co. gets more done using two truck VS. one truck. If you need help your buddy just ahead of you will rescue you (in theory) Have fun !
FullMetalJacket Thanks this. -
^^^ ^^^ ^^^
SAME cpm W2 or 1099 !? Can't be.....?
Sounds to me that someone is feeling you out for lack of experience & new fish on the hook.
There HAS to be quite a bit of difference between the 1099 & W2 situation...?
As mentioned above, just for starters....... You will be responsible for ALL your own taxes on 1099. So, figure between 20-30% that will have to be paid & on a quarterly basis. Without fail......
If W2, any benefits......?
Big thing missing here is what kind of accessory pay is under consideration either route? What is on the table.....?
Likely not enough info inparted w/your initial post on either option. But, I'm seeing red flags abounding on what little you DID post, if accurate.
That said, everyone has to start somewhere. And, definately does not sound like a mega. Smaller outfits many times a better place to start, but you also need to very vigilant on checking them out.
Wish you luck, regardless of decision, though.
Last edited: Mar 1, 2018
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Thanks for the replies.
Same Cpm 1099 or w2? That's what I immediately thought. Looking for easy targets don't know. Never taking 1099 unless it benefits me clearly...I read some other threads on 1099 vs W2. I'm not owner operator and the numbers in the long run don't add up, enough said.
W2
detention pay 20$ after 2 hours
no benefits for 90 days
layover 125$ 24hr
stop pay 50$ minus first and last
freight 99% no touch(they pay lumper if needed)
no fuel bonus
trucks gov. at 65 and 68 cruise
Now here is one thing: per diem
I plan on doing my own deductions at the end of the year and they don't force per diem.
They did say a 25$ a day fuel card when I asked them. With the new tax laws company drivers will no longer be able to itemize, if I'm correct. -
per diem allowance 25$ a day fuel card?
Last edited: Mar 2, 2018
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If at all possible make sure you are a W2 employee.
IRS will crush your nuts and that of your children for generations to come chasing you for taxes you failed to pay quarterly among other things.
Wait until you gain some experience in battle at the work place before striking off on your own. -
As was stated, the big difference is taxas. I'm an owner operator so I have to set aside 40% for taxes, as I'm paid on a 1099. So take that CPM, and subtract 40%. That's what you'll be making on a 1099. Take the W-2. There will be a 17.5% difference, which is the additional self employment tax
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