hello every one i am new to trucking and i have just taken a job with a sub contractor for fed ex. he is going to pay me pretty good but isnt taking out taxes. i have never worked for anybody that does this(last 20 years in tool and die). what do i need to do and be aware of any advise would be more than welcome
working for a sub contractor
Discussion in 'Experienced Truckers' Advice' started by shrek07, Oct 5, 2007.
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He is trying to bypass the employer-employee law.
Basically what this means is simple:
1. He controls where you work-----Employee
2. He controls what you will be paid---Employee
3. He controls when you will be paid--Employee
This has been an ongoing problem in alot of small businesses. They do this to avoid their share of SS Tax, Workmen's comp issues and uemployment taxes.
If you get hurt, who is covering you?
If you lose your job, is unemployment available?
By law you are an employee. IRS would change his mind very quickly.
If you want, I will look up the publication you will need and provide the telephone number to IRS. -
what do i need to do to cover my butt and what kind of questions do i nee to ask
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The main one is what if you get hurt? How many trucks roll over or have accidents. Truck driving is one of the most dangerous jobs.
If he is treating you like a subcontractor, walk away is my opinion. He is not complying with the law. -
If you are in doubt, go to www.irs.gov/pub/irs-pdf/p1779.pdf
Publication 1779 discusses independent contractor rules. -
Contract driver means you can't be forced to take any load...period. And you can't be fired for refusing a load.
Ask him about that. If he tells you otherwise. You are an "employee" and subject to a whole new set of Federal rules and regs that apply to you employer.
It could be as the other poster stated, he's just trying to bypass certian Fed rules by "calling" you contract labor. -
I spent 22 years in accounting and still do income taxes part time. I have several small clients that I do.
I used to run into this situation alot. It is common for small timers to try this. -
ok so not trying to seek legal advice on this forum or grammar lessons as you can see from my previous posts but......i just hired on at a local job whereas i am told exactly when to be where exactly what i am doing i use his day cab work about 50 hours a week for a salary of 550 and live in indiana he made me sign a contract stating that i was a contractor with him....is this something i should complain to the state about or i mean what gives....he already told me i would be getting a 1099 according to the irs publication in the above post its obvious i am an employee dunno what do i do or can i do
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Number 1. It is illegal. If in doubt, contact the IRS.
You are going to drive his truck. He is providing the fuel. You are nothing but a company driver.
The payment without being an employee is to save HIM from providing Workmens Compensation insurance, 1/2 of the social security, no unemployment tax so if unemployed you receive no benefit. No health insurance as well. -
Don't worry its legal, I do this with my drivers. You will get a 1099 at the end of the year.
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