1099 Company Drivers Don't Need An ABC Test For That

And so why have we not had avalanches of bricks burying all these companies who just 1099's drivers to get rid of the tax man nation wide?

It only takes one owie or one fired driver filing as a 1099'er to the state for them to get started on the bricks.

Imagine a law nationally that all motor carriers who hire employees cannot use 1099 at all?

 

Yup, just imagine if all these 1099 companies had to actually be legit, more than half of them wouldn't be in business.

 

You've got that right. I can guarantee you that over half of the rock bucket companies within a 50 mile radius would disappear over night, or end up just being one truck operations. They've all but taken over the construction game in my area it seems.

 

It’s very simple. Don’t work for them. There are plenty of legitimate companies looking for drivers.

 

They are going to start cracking down on this you can bet. I used to work for a small port hauling company in NJ and the owner had mentioned to me before that it was being talked about that he would maybe have to start W2-ing his 2-3 guys he had running their own trucks under his authority. Basically it sounded like the state and Feds are wanting to make it his problem as the company owner to collect and withhold the taxes for those guys rather than allowing the truck owners to do it themselves. This makes sense I guess. They want their money and don't to have to go chasing anybody for it.

 

I worked for someone in 2008 that paid on 1099. He had to lay some of us off when economy took a dump, but brought us back after we filed unemployment and he had to fire the few people he didn't lay off. He ended up paying back taxes (FUTA and other employer taxes). We didn't have anything that said we were contractors on 1099 other than his word. After that he was W-2. Come about August of 2009 he was closing his doors.