1099 and worker’s compensation

Sure you can, if it doesn’t bother you to put a driver and his family’s future at risk if he gets hurt. But at least you will make a little more.

if you do 1099 a driver and make him mad and he leaves he can inform the irs and you will have to back pay the ssi you didn’t pay.

 

Not to mention if a 1099 driver that is truly a W2 driver gets hurt, he can personally sue his boss for not being covered by workers compensation.

 

W2 with worker comp if you want to be legit.

 

Q1 - this can be done but it is more costly than doing a w2 and benefits.

 

So, I'm just doing my research, but this experienced driver I came across wants me to pay him on a 1099 until he retires. He's had his own trucking-related businesses in the past and has plenty of trucking experience, V, F, SD and up to 13 axle in heavy haul. I'm gaining a decent number of good customers now so I can stay pretty busy just in the office full time (will need to bring ppl in soon to help me out) but I want to make it a win-win situation. Both of us have to be profitable and happy. I know I can get good rates from my own customers and other contacts and selective brokers. He can choose to take them or not, or find his own loads if he chooses. Only thing is I have to approve any sources he may try to get work from - and there are some brokers (like TQL) that I will NEVER work with again. Any of you owners run a driver under a 1099? I know there are different ways to do it (like, percentage with or without the driver paying for fuel, etc.). I did talk to a transportation attorney briefly about it and he advised making sure he will be enrolled in a WC policy, so that will be another expense. Any input will be appreciated from those who are doing it successfully.

 

If any bad blood comes about or and accident happens you could be in for a real #### storm with out comp and not with holding. That being said my uncle hires guys seasonally to haul rice and walnuts every year and has never had a problem with 1099 pay

 

Yes I do but every driver is under contract, I don’t play games and the drivers are in control of their trucks.

those who do this as a forced dispatched system is doing it wrong and those drivers are all employees by the regulations and laws. Don’t matter what others think, the irs and dol both have thousands and thousands of cases where the company tried to screw over the person and ends up paying them as employees.

by the way seasonal work is different, people are hired to do a specific job for a specific time period.