Owner Operators having difficulty finding drivers.

Gotta learn how to play the game like the rich... Americans have been fooled into thinking that getting legally robbed is patriotic. Taxes are theft. So if you can legally diminish the amount that they steal from you, more power to you sir!!

 

The difference between W2 and 1099 is 1099 owns the truck. It's not your choice to make.

 

I think you are confused with what I’m saying. I was talking about a driver who is paid on a 1099. He doesn’t own the truck, he is told when and where to work, and has no real business expenses. He should be on a W2. Period. He shouldn’t be deducting the meal he took his family out to. lol

If you are a legit business owner then fine do your 1099. As long as you do things LEGALLY then more power to yah.

I get a W2 AND a K1 but I’m an S Corp. all of my EMPLOYEES are on a W2 as they should be. My only 1099 is an owner op as he should be.

What we were talking about was trucking companies hiring drivers as contractors when they act as employees. Did you read the entire thread?

 

Yes, I read the whole thing, and yes, I concur that there's times that it's appropriate to be 1099, and times it's not.
From an employer standpoint, there is a minimum number of employees a business must have before they're obligated to follow the w2 rules instead of 1099.
Generally, that's 5 plus the principal.
There is a test the irs uses to determine qualification for both
Legal business entity is a core aspect.
I'm a sole proprietorship, but have been an LLC with another business.
W2 vs 1099 is pretty clear cut.
It does get a little muddied in the services for hire game though...
I've been hired to run a mill for another yard in the area on occasion, and I run 1099 for it.
It's within the requirements for W2, if I weren't a business in the same genre industry. Essentially, I'm a contractor performing a service for another business.
It could be argued that a driver is a contractor that's been contracted to operate equipment for the parent company, and as such, is eligible for 1099.
No contract? It's W2. Contract? 1099 eligible.

 

Wrong,

 

Not really. Contractors bring their tools.

 

You should look up legal definitions before you define them yourself and look silly.

 

Some rules of thumb for contractors:

Common Law Test

1. A worker is an employee if the institution has the right to control the manner and means of accomplishing the result desired.
2. An employee is paid for his/her time and bears no risk of wage loss if the employer’s product is unprofitable. An independent contractor has the opportunity to profit from the project and the risk of loss, depending on the worker's managerial skill.
3. An employee is not required to invest in the employer’s business. An independent contractor makes some investment in tools, equipment, supplies, and facilities appropriate for his/her business.
4. An employee may receive training. An independent contractor has the skills necessary to perform the task without additional training.
5. An employee enjoys a continuing relationship with the employer. An independent contractor generally works on one project and moves on, accepting additional projects when and if available.
6. An employee provides services that are essential to the employer’s business and incorporated into its products and services

Independent Contractor Rules of Thumb | Office of Legal Affairs | UNC Charlotte

Factor 6 Not a continuing relationship
Usually contractors don't have a continuing relationship with a hiring company. The relationship can be frequent, but it must be at irregular intervals, on call or whenever work is available. Warning: Part-time, seasonal or short-duration relationships have nothing to do with independent contractor status.

Factor 15 Have own tools
Usually contractors furnish their own tools. Some hiring firms have leased equipment to their independent contractors-so they could show the contractor had their own tools and an investment in their business (see # 16). This strategy won’t work if the lease is for a nominal amount or can be canceled by the hiring firm at will. In short, the lease must be equivalent to what an independent business person could have obtained in the open market. For more information, contact a labor attorney.

Factor 16 Significant investment in their business
Contractors should be able to perform their services without the hiring company’s facilities (equipment, office furniture, machinery, etc.). The contractor's investment in his/her trade must be real, essential and adequate (see #15).

 

No that's not how it works.

In this industry, there is a skills need. Not a tools need.

A contractor can be hired with nothing more than a cdl and a clean record.

You can have a need that you have to have a driver, that driver can be contracted for a deticated customer or allow them to do work you find, which the latter is close to making them an employee.

 

I worked 1099 with an owner of 125 trucks. It was straight up legit. Guy never called unless I forgot to turn in a bill. Or hadn’t come by the office for over 14 days.

I worked when I wanted. Sat at home when I wanted. Picked my own loads from what they had available. Drove his truck. Life was good