1099 Questions?

The hate comes from the majority of 1099 companies not doing it correctly, not treating people as true independent contractors. The minute they are treated as an employee it is illegal for them to be paid on 1099.

 

Very mature "staff member". If youre not going to help, then put your dunce cap back on and be quiet.

 

I did ok. Made a little more than running OTR. Nowhere near as much as I am now. LIke & dislike are relative to the individual. I liked USA Truck and Marten. Marten is really strict about worktime and hometime though. But they take great care of their equipment. USA Truck was more lacidasial when it came to company rules and such.

 

Less than about 60 cents a mile and you aren’t getting a deal. If they are offering 1099 it isn’t to help the driver but to save them money and put liability on you. If you want all that responsibility draw up a business plan and run your own truck.

 

You need to pay yourself a salary that reflects an industry average for any other employee. So no paying yourself $50 a week or some other BS amount. Check IRS rules very carefully. Occ Acc insurance vs Workers Comp can be mandated by the state, not all states accept Occ Acc, and some mandate that for even one driver, even if the sole owner of a company, that workers comp is required. Single member LLC and Corps are still usually disregarded entities for most tax purposes.

 

I can not understand this rise in 1099 contractor companies and I mean outside of trucking as well.

The difference between contractor and employee is that an employee is told how, what, where to do a thing. A contractor uses his own methodology to get to the same result.

If your are being told how, what and where, how is one not an employee by definition?

You understand as well that all the labor laws and protections do not apply to a contractor? Sure, you may pay occupational safety ect, but you do not have any of the protections under the FLSA. This includes overtime, unfair bargaining practices, safety issues, ability to file labor/safety complaints, biasing practices, wage standards, the list goes on an on.

Independent Contractor Defined | Internal Revenue Service

 

That #### is EVERYWHERE around here. Every other job posting is 1099 and they're all the usual suspects.

 

I never said I would pay myself that low or that anyone should under pay themselves. You don't have to cheat the IRS to still receive a better tax break than a W-2. Like I said, with the right accountant it can be done properly and be beneficial to 1099 drivers. By paying yourself a small REASONABLE salary you lower your FICA taxes and self employment. Dividends/ Distribution from the corp to owner are not subject to FICA. Your salary payment to the employee-owner is taxable but its also a deduction towards the business so essentially you are only being taxed once and not double like everybody thinks. Not to mention you have the write OTR write off that drivers SHOULD have.

 

I understand the difference between contractor and employee. Thats why I mention companies not controlling what contractors are doing while OTR. Why would labor laws matter to a contractor? He controls his own hours and picks his own freight? He's literally his own boss IF he's treated as such!

 

Would I be able to work a 1099 w a false ss#
Maybe a erroneous middle initial?
Not paying in.
I always wondered how long before the IRS came a knocking.

 

None.

1) The company doing this probably pays zero or very little US taxes. They let the 1099 driver stay on for 3 months or so then get rid of him, erase all his records and the money they made is their- tax free.

Some 1099 companies that once were exclusively 1099 are now offering both 1099 and W2. Maybe they sense a govt crackdown coming.

2) As a 1099 employee you have no recourse through the State Dept of Labor for wages owed. Once you get fired or quit they keep your escrow and last 2 week's pay.

You can go to Court and spend 5-10 thousand to recover 3-4 thousand but as you can see it's not worth it.