1099 vs W2

If you are not an O/O then a 1099 probably is not for you but~ that also depends on what is being paid. If you are running some ones truck and getting 25-30% of gross then maybe depends on the deal. As far as paying more I taxes not really depends on what your deductions are remember you are not a business.

 

Thank you for your input! I am just trying to find out why it is not legal. I have seen the similar discussion on the other forum and would like to make sure I do the right thing before going further..

 

Read through this and it will lay out the difference between an employee and a contractor.

Independent Contractor (Self-Employed) or Employee?

 

I was hired on 1099 for years. I thought I was paid good compared to those paid as employees (not "contractors"), the difference was quite large, even considering my share I had to pay to IRS - it was difficult to find discipline to put money aside for that purpose and so creating back taxes debt a year after year after year... Also, I had to buy my own occupational insurance (200 a month). Employees/contractors on 1099 are exposed to many risks; labor law could be and is often circumvented by employers - carriers having them (contractors - drivers) sign lots of shady paperwork, making them sometimes liable for paying deductibles on claims (even cargo) and what not; besides there is no workers comp, no unemployment benefits, not to mention Health Insurance and Retirement plans. But you felt cash, which is always more palpable than having workers comp or 401K.The real danger with 1099 is when get injured or disabled at work and you don't have any workers comp or occupational insurance.
Having said that, the only beneficiaries of 1099 set up are mostly carriers and owner ops hiring like that. If there is any illegality in it, it is only for them to worry about it.

 

Thank you !!

 

You are absolutely wrong. I am a fleet owner . i pay all my guys through 1099. they make .46-.48cpm , they get bonuses , gifts , any time off they want, no forced dispatch ,they take the trucks home. they make more $ than i do and i take all the risk . yes they drive i sit at home and pray that trucks don't brake down . also they are on contract which clearly states that they will pay taxes at the end of the year and thats it. nothing shady about it . , my guys are avg 1800-2100 per week, if they want more they work more. . They are happy.

benefits of 1099- they pay LESS TAXES- they write off everything that they use on the rd, in the end they pay less for taxes compare to w2.
insurance - they get medical insurance through their spouse . non married guys pay for medical insurance 150$ per month ( its emergency insurance ) in case of injury or sudden surgery , anything serious they are covered 95% . its not preventative insurance . but have you seen insurance from other companies , its freakin ripoff . i have same emergency insurance as well . we are all young healthy people no need to go to doctors . if we do ( maintenance routine) i just pay cash
out of pocket . 3 times per year it costs me 250$ . obviously we are young and healthy s it works for us , but if you are someone who is at doctors every other week it may not work for you . (reminder -doctors treat symptoms not cure diseases ) . you do that your self with diet and exercise , my guys eat healthy , go to gym every few days and i stay on top of them about that .

in the end it all depends on who you work for . i take pride in my guys i treat them right and they treat me trucks right .

 

you don't know what you ate talking about

 

its not a cheap way .if you were intelligent enough and knew how much 1099 guys pay on taxes you wouldn't be saying that

 

Am I wrong of what? I got paid on 1099 for over a decade so I know how it is.
What can they write off that W-2 drivers can't? Unless you can help them out with some bogus truck maintenance receipts for repairs in case IRS grabs them by their ###. You want to pay them on 1099 because it is simpler for you and less expensive. I don't care. Just make sure you carry some occupational insurance for them, as #### happens and when it does and they will go after you and scream at whole world that what you are doing is a sham and you should have hired them as employees, but you did not and now they want you to sell your house to pay their medical bills, their lawyers will try to prove that your LLC is a sham too.