1099 Questions?

Ive been reading in the forum for a while and I noticed the disdain for 1099 companies. My question is what would make a 1099 job ideal for driver? The biggest issues I see are driver benefits and driver taxes which is understandable.

I feel as though there are benefits and ways to protect yourself as a 1099 independent contractor when it comes to tax purposes. For one, it allows you to write off on the road expenses that W-2 drivers cannot write off because of the new tax law. The next issue would be the employment tax but if you set up an with LLC and elect to be taxed as an S-Corp then you will be able to avoid the 15% employment tax with the right accountant(can explain in detail). Not to mention establishing a Sep IRA within the S-Corp which you are providing yourself with your own pension plan(Benefits).

As far as insurance, you have Occupational Accidental Insurance out there that allows you to choose a type of coverage that you feel is neccessary for you.

If a company offered independent contractors the freedom to chose their own loads and work schedule plus assistance with everything mentioned above, would that be ideal?

It seems like if 1099 companies actually treated drivers like "independent contractors" then it is more beneficial today than being a W-2. When I hear the term independent contractor I think of them as business entities and they should be treated as such. I just think if drivers saw themselves as more of a business than employees then 1099 can be beneficial to you. I understand its not for everyone but I do believe it has a place for individuals who want freedom and control over their business.

I could be wrong...but thats why I am here...to learn from drivers with experience in the industry. Please dont be bashful....just educate and spread knowledge please.

 

It’s only illegal if you are being treated as an employee. You can lower your fica by establishing an s Corp and paying yourself the lowest possible salary and taking the rest as a distribution. An S Corp net profit is not subject to FICA. Occupational accidental insurance is cheaper than work as comp. I understand the unemployment part that makes sense for sure. What if the company covered those things such as setting you up legally to get those benefits from the corporation and provided the occupational accidental insurance?

 

Where you set up the right way legally? Tax benefits would probably made the .45/mile feel a little bit better right? Like I said it would rake the proper accountant and ownership of the driver to make sure they are getting the necessary deductions and benefits but that’s what being established as a business man is right?

 

Where you making good money being a co driver in your friends tuck on 1099? I don't get the hate if its done right. It gives you freedom and allows you to build up your business if its set up correctly.