So i gotta ask the owner ops here

I'm an OO in a small company with 22 trucks. 17 are OO and 5 are company drivers. He pays all 5 of them 1099 and pays 40% net.

After fuel, insurance, tolls, and elogs, they get 40% what's left. It's about $1600-$1800 a week. He says the higher pay helps with driver retention. Seeing the newest driver has been there 4 years I guess it's good enough.

 

LMFAO. Thanks

 

Net?

That's cheap.

Does he tell the drivers where to go?

If so, they are employees.

 

My little story. Been in business 1.5 years and started my drivers on 1099. I paid 27% of load and they choose load. I know this sounds low on 1099 but this is the true 27% of load meaning I didnt get the rate con and make my own cutting the driver like most do and pay 35% which equals the same. I could not afford workers comp rate of $47,000 year along with new entrant insurance premiums and no shippers being new. I ran for a broker and pinched pennies and done all maint myself. I told my drivers to be patient and W2 will come and After the year mark my insurance dropped and found workers comp for $12 on the hundred. Now I have direct customers and will be doing my first payroll Monday with ADP.

 

12 the hundred sounds double what I was quoted in KS which was 6.8 I think

 

Yeah it’s high here in NC for first time coverage

 

You do know that if you have a driver wanting to screw you, he can call the IRS and tell them he is an employee and that he wasn't going getting his taxes paid. When you arrange the loads for the drivers and then tell them they have to deal with what you give them, they are employees.

ALSO the same goes for an accident, without worker's comp, you put yourself in the cross hairs of a good lawsuit over an injury.

 

I didn’t arrange loads. They talked directly to the broker and ran the truck how they wanted.

 

That's great.

that's the way it is supposed to be.

You did have them under contract?

 

I pay Gross minus FSC x .25 on W2 Trucks average $7000 plus. So right now $7000 x 82 % x 25% = 1435 per week.