1099?

A 1099 has nothing to do with owning your own equipment. If you recieve mony from someone who doesnt with hold taxes, you get a 1099 for that money they paid you. Incidently, IRS is hot on this and is coming down on FEDEX rather hard. IRS is saying that, if you only work for one company, you are not a independent contractor, whether you own the equipment or not.

 

State and Federal agencies are currently pushing to end unqualified independent contractor situations in all industries, not only trucking. Tax collection is the incentive, and the IRS is pointing out the violators.

I know of drivers on company equipment who are paid as independents. It is a clear violation because of the control the company has on their activities.

 

Thats true but a company driver can recieve a 1099. I know I did one year

 

Big ole lawsuit going on right now over this. And I think it is going to pass that 1099ing most drivers is illegal.

 

Technically it was and still is not legal to pay a company driver by 1099.

He is not a business with assets at risk, nor have choice of loads.

 

Usually it happens when the employee finds himself suddenly responsible for taxes and notifys the IRS.

It does not only happen in trucking.

I have seen it in pest control, taxis, and office work.

 

By 1099'ing companies don't pay unemployment, social security, insurance or any taxes and yet don't pay you enough to either! It's a gimmick the industry can make more money and not put out. Yet you get nothing!