a conundrum

I would think that he would be a sub-contractor 1099 but i may be wrong.

 

If he works for you you must pay on a w-2 pay workers comp. employee payroll taxes etc.....People do slip bye by doing a 1099 but it is not legal
and when you get cought you will pay.

 

Expedite fleet owners hire drivers as idependent contractors paying them 60% of the gross and driver buys the fuel .
Several options.
1.Use the above arrangements . Legal if he buys fuel and gets the authority to pick loads .
2. Lease him the truck for an amount that would give you a reasonable amount above expenses , possibly a lease purchase .
2 .Form an LLC or corporation and make him a small share partner .
But most importantly get advice from a tax professional .

 

You went out and bought a 05 Freightliner. Are you making payments on it?
If so, then you need to determine, how much profit you'll make from GreatWide. You may not be able to afford to pay a driver, if between truck payments, fuel and insurance.
Do your homework first .
How is Greatwide Paying You? Mileage or percentage?
Is this local or overtheroad work? If you're getting mileage, how many miles will they give you per week?


After you determine this, you then want to figure what you can afford to pay a driver.
Normally , the driver would sublease. (Greatwide may be able to do this for you) Or, You make a copy of your lease and have the driver sign one. This way you won't have to consider him as an employee. The driver needs to carry his own lease with him in the truck. That is the Law. This lease will release you of any and all responsibilities. You will not take any taxes out nor do you need workmans comp. You will give him a 1099 at the end of the year, which is not hard to do.
Normally a driver will get 24-27% of the load or 32-34 cents a mile. If there's any extra stops paid, the driver gets all of that.

But you really have to figure first , how much you will make, running your truck with the company. I know since you haven't ran for them, it will be hard to determine this. You may cut yourself short or break out even paying a driver to run your truck., depending on any truck payments you have and how much.
It may be better for you to run your own truck to see a profit. But then again, 80 grand a year sounds good with the other company.
One thing you want to make sure of, is not using any money working for the other company, towards paying the driver or operating your truck.
That truck should hold its own weight.
With truck payments, you may only make enough to pay the driver, the insurance and other expenses, like maintenence and plates for the next year. Will Greatwide provide any insurance for you ? Liability, nontrucking liability, bobtail, etc. That will be deducted out of your settlement? Will they be doing your fuel taxes? Will they be taking out any money and holding it for escrow? You may not see any profit in your own pocket after all that's said and done.
Don't worry about incorporating. You can run under your own name as your business.

 

From irs.gov take it for what is worth.

It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. If you are an independent contractor and hire or subcontract work to others, you will want to review the information in this section to determine whether individuals you hire are independent contractors (subcontractors) or employees.

Behavioral control refers to facts that show whether there is a right to direct or control how the worker does the work. A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done – as long as the employer has the right to direct and control the work.
The behavioral control factors fall into the categories of:

• Type of instructions given
• Degree of instruction
• Evaluation systems
• Training

Types of Instructions Given
An employee is generally subject to the business’s instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work.

• When and where to do the work.
• What tools or equipment to use.
• What workers to hire or to assist with the work.
• Where to purchase supplies and services.
• What work must be performed by a specified individual.
• What order or sequence to follow when performing the work.

Degree of Instruction
Degree of Instruction means that the more detailed the instructions, the more control the business exercises over the worker. More detailed instructions indicate that the worker is an employee. Less detailed instructions reflects less control, indicating that the worker is more likely an independent contractor.
Note: The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right.

Financial control refers to facts that show whether or not the business has the right to control the economic aspects of the worker’s job.
The financial control factors fall into the categories of:

• Significant investment
• Unreimbursed expenses
• Opportunity for profit or loss
• Services available to the market
• Method of payment

Significant investment
An independent contractor often has a significant investment in the equipment he or she uses in working for someone else. However, in many occupations, such as construction, workers spend thousands of dollars on the tools and equipment they use and are still considered to be employees. There are no precise dollar limits that must be met in order to have a significant investment. Furthermore, a significant investment is not necessary for independent contractor status as some types of work simply do not require large expenditures.
Unreimbursed expenses
Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services that they perform for their business.
Opportunity for profit or loss
The opportunity to make a profit or loss is another important factor. If a worker has a significant investment in the tools and equipment used and if the worker has unreimbursed expenses, the worker has a greater opportunity to lose money (i.e., their expenses will exceed their income from the work). Having the possibility of incurring a loss indicates that the worker is an independent contractor.
Services available to the market
An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.
Method of payment
An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.

Type of relationship refers to facts that show how the worker and business perceive their relationship to each other.
The factors, for the type of relationship between two parties, generally fall into the categories of:

• Written contracts
• Employee benefits
• Permanency of the relationship
• Services provided as key activity of the business

Written Contracts
Although a contract may state that the worker is an employee or an independent contractor, this is not sufficient to determine the worker’s status. The IRS is not required to follow a contract stating that the worker is an independent contractor, responsible for paying his or her own self employment tax. How the parties work together determines whether the worker is an employee or an independent contractor.
Employee Benefits
Employee benefits include things like insurance, pension plans, paid vacation, sick days, and disability insurance. Businesses generally do not grant these benefits to independent contractors. However, the lack of these types of benefits does not necessarily mean the worker is an independent contractor.
Permanency of the Relationship
If you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.
Services Provided as Key Activity of the Business
If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.

 

Also something else to consider you said you leased on with greatwide here is something else to consider before putting someone in the truck over there.

Greatwide Logistics Worldwide Files Bankruptcy Cases in Delaware

 

companies delare bankruptcy every day. doesn't mean they are going anywhere. it's just a tool to restructure. Now I'm no fan of greatwide. the dealings i've had with them I havn't walked away with a god taste in my mouth about them. but I don't now allot