1099 Form Question

Good god, if we were talking about speeding, would you state the fact that when you went one mph over the limit, and were not stuck down by lightning, or a police helicopter landed on your trailer, and cops climbed into your cab to arrest you AT THAT VERY MOMENT....that speeding must be legal?

Working on a 1099 is a suckers bet. The companies that do this to truckers are usually sleazy.

I have worked on a 1099, when I first started trucking, and was young, and stupid. I'll never do it again.

Oh yes, one idiot who payed me on a 1099, also deducted fake taxes and SSI, but there was never any record of the funds.

Don't mess with these sleazebags.

 

its not a problem till you get audited.

some key items the IRS will look at it is,

1 who owns the truck--if its the drivers truck, most likely independent. If it belongs to the company most likely employed
2 who pays all/most of the expenses---driver, most likely independent. Company, most likely employed.
3 who controls the driver--- driver has complete control, independent. Company has control employed.

As to whether the IRS goes after the independent contractor 1099 or the employer for misclassification is luck of the draw.

From what you described I would think the employer is misclassifying drivers as independent. I wouldn't do it under those circumstances.



The following is a list of 20 questions the IRS uses to determine if a worker is an independent contractor or employee. The answer of yes to any one of the questions (except #16) may mean the worker is an employee.

1. Is the worker required to comply with instructions about when, where and how the work is done?
2. Is the worker provided training that would enable him/her to perform a job in a particular method or manner?
3. Are the services provided by the worker an integral part of the business’ operations?
4. Must the services be rendered personally?
5. Does the business hire, supervise, or pay assistants to help the worker on the job?
6. Is there a continuing relationship between the worker and the person for whom the services are performed?
7. Does the recipient of the services set the work schedule?
8. Is the worker required to devote his/her full time to the person he/she performs services for?
9. Is the work performed at the place of business of the company or at specific places set by the company?
10. Does the recipient of the services direct the sequence in which the work must be done?
11. Are regular oral or written reports required to be submitted by the worker?
12. Is the method of payment hourly, weekly, monthly (as opposed to commission or by the job?)
13. Are business and/or traveling expenses reimbursed?
14. Does the company furnish tools and materials used by the worker?
15. Has the worker failed to invest in equipment or facilities used to provide the services?
16. Does the arrangement put the person in a position or realizing either a profit or loss on the work?
17. Does the worker perform services exclusively for the company rather than working for a number of companies at the same time?
18. Does the worker in fact make his/her services regularly available to the general public?
19. Is the worker subject to dismissal for reasons other than non-performance of the contract specifications?
20. Can the worker terminate his/her relationship without incurring a liability for failure to complete the job?

 

I have stated this before, when you drive under a 1099 you are classified as an independent contractor which basically means that if anything happens, you are 100% responsible, accidents, shortages, damages and injury on the job. Just because this is done everyday and people get by with it, there is no way that I would put myself out there without "protection". When you drive under a W-2, company driver, you have the protection of the company and their insurance, but under 1099 you are on your own. Don't believe what I have just said, ask a lawyer.

 

It is very simple. If you choose to work on a 1099, then pay your taxes and stop complaining. If you don't want to work on a 1099, then find another company that takes YOUR taxes out and pays YOUR taxes for YOU. No one forces anyone to work on a 1099. You choose to work for a 1099 or W2. There are many carriers around. Those who complain the most are likely the same ones who refuse to take responsibility for themselves and when they fail to pay their taxes and get caught, they try to push the blame on the carrier. If you are paid on a 1099 and fail to pay your taxes, it is YOU who are breaking the law, not the company. We are each responsible for paying our OWN taxes. If you are not responsible or unable to budget or plan for taxes, then find a company where you can work that will take all that responsibility off your shoulders.

 

Even more simple than that.

Do it legal like it supposed to be in the first place.

I suggest any driver being paid as an employee by 1099, contact the IRS to clarify this and correct it.

 

It is legal to pay on either a w2 or 1099. The only thing that is illegal about working on a 1099, is that the worker fails to file and pay his taxes. Some people need someone to take care of them.

 

Let them contact the IRS and get them involved.

If you are legally paying them, which is not true, then you have nothing to worry about.

A driver paid on 1099 is not an independent contractor. They are employees.

Still waiting on the proof that shows this to be legal.

 

It's a lot more involved than that!

 

No need to prove that it is legal. I have not heard anything that states that it is illegal. An IRS footnote is NOT a law. The IRS cannot make their own laws, contrary to what they may think. If you need to get the IRS involved in your business, perhaps you need to find another job. I would not be surprised if carriers forced owner operators to incorporate in order to sign a lease if we see more attacks on the independent contractor classification.

 

I have shown the rules and links to support my stand.

You cannot.