Contractor or sub contractor?

Discussion in 'Ask An Owner Operator' started by Estrella, Dec 19, 2018.

  1. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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    I'm new in this kind of field any response will be appreciated. I bought a truck couple of weeks ago I hired a driver that is fixing to work for a Fedex he is going to be on their payroll I already got my LLC so my question is Am I a contractor or sub contractor?
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    Your LLC is a service provider for FedEx, they call it a "contractor" but you are not driving so ... you are providing the trucks.

    FedEx is 'hiring' the driver?

    Never heard of that.
     
  4. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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  5. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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  6. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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    No he isn't going to be hired by Fedex he just delivery loads for them.
     
  7. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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    Ridgeline thank you so much for your response.
     
  8. SteerTire

    SteerTire Road Train Member

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  9. Gdog66223

    Gdog66223 Road Train Member

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    So you are considered a Contractor that is leased to Fedex pulling their loads only... Now the driver could be your Sub-Contractor if you pay him 1099... sounds very confusing... Is there a reason you cannot drive?
     
  10. Estrella

    Estrella Bobtail Member

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    Dec 19, 2018
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    Merry Christmas!! Im the one that is going to pay him so yes he will be my sub contractor he is going to start working pulling the loads for Fedex the first week of January. In this case because Im a contractor for Fedex I assumed they are going to pay for the taxes. Do I have to pay taxes for my sub contractor?
     
  11. SoCalRed

    SoCalRed Medium Load Member

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    You are asking truckers for tax advice, ok here it is.
    If Fedex pays the driver they are responsible for the taxes.
    If you pay the driver then taxes are your responsibility.
    If you pay the driver on 1099 then taxes are drivers responsibility.
    I don't have any financial or tax training, so talk to your CPA. If you don't have one now is a good time to hire one.
    Good luck
     
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