1099? Run now?

Does he wear an green or grey addias sweatsuit with sandals?

 

Yeah just find someone else...but.its all about math and what works for you

 

If all you want is .50 per mile, I'd look elsewhere. There are many companies that you can make .50 mile for, and get benefits. Or even make .45 per mile and get bennies AND accessory pay.

The tax hassles just aren't worth it (to me at least), not to mention the bad reputation the shady 1099 companies have.

I'm not saying that 1099 employment cant work, but there should be a compelling reason. And .50 per mile ain't very compelling. The danger is that 1099 companies want to PRETEND your an independent contractor, but will expect you to work like an employee.

I'd just as soon be an employee for .50 . At least I know where I stand, and my tax situation is a no brainer.

 

Nothing wrong with 1099 work, as long as it's legit. I worked on 1099's for almost a decade without issue. In this case that pay doesn't justify it though. You do not have to pay quarterly taxes as said above, that's optional, I did it yearly but you do pay self employment tax, as well as double social security. Don't forget your responsible for health care as well and putting away for retirement. Do you get to choose your own schedule? Take days off at will? Choose runs? If not, your NOT a 1099! Regardless of what the company says.

With +5pts you shouldn't have an issue getting on anywhere. I work for NEMF which has a terminal in Staunton, check them out. Employee, OT after 8hrs/day. Cheap benefits, 401k + Pension, 8 paid holidays, Sick, personal days, home every night.

 

I can't top this reply...just "quote" it, and hope the OP reads it twice.
As said...even .45 cpm on W2 is MUCH better than .50 cpm on 1099.

I drove on 1099 for 3 months one year...and W2 for the other 9 months...and STILL ended up owing the government $700.00 at tax time even though I ran W2 three times longer than 1099 (and this was after all deductions and per-diem claimed). The taxes will absolutely smack some sense in you.

You can make lots of money---but you BETTER put lots away as well. It will NOT calculate anywhere close to .50 cpm once you're done paying Uncle Sam. Atleast if you drive for a company on W2 at .45 cpm, your taxes will be paid, and your deductions and per-diem will get you a return, not a bill.

I GAURANTEE your yearly NET income plus tax return will be far more money in your pocket/bank at .45 cpm W2 than .50 cpm 1099.

P.S.- People ask....we answer....nobody listens. DON'T BE THAT GUY.

 

Run for the hills - 1099 is a ####ing scam unless you're running your own business. If you're a company driver on a 1099, you're getting bent over. You're paying the companies share of taxes, with no benefit to you.

 

A friend of mind works on 1099. He gets a lot of money after every run but at the end of the year he pays a lot to uncle sam. Also, he has had some health issues and found himself paying bunch of money due to lack of health insurance. His kids actually applied for medicare if I am not mistaken, so they could be covered.

As an advice, stay away from it. Work for your local ltl company and get some experience.

 

If you really want to, you should be able to file some form with the IRS, essentially asking them to determine whether you should be 1099 or not. From what I've heard, they've been trying to cut down on misclassification.

Of course, forcing your employer to retroactively pay their share of taxes plus a fine, plus convert you to a W2 employee is not going to create a healthy employee:employer relationship, so be prepared to find a new job if you go that route.