1099 Trucking Pros and Cons

Lots of the drivers doing 1099 have only been W-2 employees. They only learn about their tax debt on the next April 15 when the expect to get their typical refund and are shocked.

Those drivers familiar with 1099 are not typically the ones on the forum asking about 1099. The IRS will not accept "I didn't know I was supposed to be paying taxes" as a good excuse. But most people making mistakes don't just accidentally make a mistake. They climb the fence, ignore the warning signs and jump in to the tiger cage to pet the big kitty. Then act outraged someone let this happen. Make sure to save 30% for taxes & some for workers comp.

 

Not here.

These guys are union here. The little mom and pop companies sure many of them are cheap but the bigger companies, all are union w2.

 

Some 1099 companies will hire drivers that can't get hired anywhere else. That's the only positive I can think of.

 

I thought it also has to do with liability. If you're involved in a collision while driving as a 1099 contractor, you're not technically an employee of the company, so would you be covered by their insurance, or would you be on the hook? Someone gets hurt or killed, it could cost you far, far more than what you might owe the gov't on April 15.

 

It is the same, you are always covered by their insurance no matter what.

 

As an independent contractor you are allowed to work wherever you wish.
I know a ride share driver who has four phones and picks the run that makes the most, Uber, lyft, door dash or Walmart.
Another guy is a handyman and works three different apps.
As a 1099 truck driver can you work for whoever you want when you want ?
As a 1099 you pay employee and employer tax. Plus you are responsible for workers compensation and unemployment insurance.

 

Lawyers don't just give up because someone claims not to be an employee. Many employers, the IRS estimates 80% of 1099 independent contractors are misclassified, and if that company and those ICs are sued and the company and driver didn't meet the requirements for IC, just decided not to pay taxes and claim to be ICs the company is still in jeopardy.