Am I missing something, 1099?

Before everyone decries the companies that do this as being ALL evil, and everyone else is SO just..... there are drivers that need these companies.

You could be the greatest driver EVER, your in the wrong place at the wrong time, and God rolls your truck with a nado.

No one cares why. You are now the proud owner of a roll over.

Maybe all you know is truck driving. Maybe it's all you wanna know.

Working for one of those outfits puts you back on your feet. Maybe you have bills and a family and have a truckload of deductions and it's not so bad.

So many people here that are holier-than-thou.

Maybe the dude just doesn't wanna be a bum.

Maybe he's happier than a clam, until he joins TTR and interacts with so many people that are miserable.

Maybe he's smarter than that and goes "Boy are those people miserable."

 

1099..you are responsible for all your taxes. Handle more $$ but its not all yours. Federal, state if your state has income tax, and local. Some of people i know thought they were making it big until IRS wanted to know where cut is.

 

Pay up to .45 a mile? any other pay or just miles? so 1 person might make .45 a mile out of a few hundred, heck they can pay you .02 a mile and still be telling truth. Getting paid only miles is going to be doing a lot of work with no extra pay. Plus 1099 you have to pay your and companies workman comp side of taxes so you are covered in case of injury.

 

At $.45 a mile, the taxes will only be around 3% for 1099 driver. A company driver is going to pay a minimum of 7%.

 

If you are a corporation you don’t get 1099. Come on now ....

 

Some shady drivers think working as 1099 is a pay raise and they plan on never paying taxes. I'd rather owe money to the mafia than expect to get away stiffing the IRS. One problem was enough for me

 

Several drivers over the year when they got fired by my old company would get hired by a 1099 company across the street. A few if them thought it was a pay raise because suddenly their check is bigger, even though they're paid less per hour, because no taxes are deducted. Then the first April 15 rolls around and they discover they owe several thousand dollars in taxes to the IRS and the state.

 

I am not a tax expert. If a 1099 driver is at .45 and does 90,000 miles that equates to 40,500 income. There is no way they will have a 3% tax debt. Social Security or self employment tax is 15% for self employed people, or 1099 people. Your employer pays 7.5% and you as employee pay 7.5%. So there is 6,075 for that only, owed to the Federal government. Now depending on deductions they may whittle their actual tax burden down. But most assured not to 3%. Lets say they end up in the 20% bracket. Now another 8,100 to the Feds. Now Uncle Sam gets or wants a check for 14,175. Lower tax brackets obviously equal lower tax burden. Don't forget state income as mentioned before and local tax which in my area is 1%. File a few years with nonpayment or very low % and you stand a good chance for a audit. Then you get to verify all you deductions, for last 7 years?.

 

You were done with the first sentence. Really didn't need to keep going and prove it.

 

A typical 1099 driver ( excludes l/o and o/o) doesn't have enough(legitimate)write offs to off set the extra 7.65% in taxes he/ she has to pay.
On top of no workers comp.

What sets you apart from the 1099 scum that are just passing the tax burden on to the driver along with not paying workers comp?

Just curious:
Even being paid percentage it can be broke down to an average cpm.
What's the average yearly gross.
What's the average miles for the gross.
What are the perks.
I ask because I've not ever run into a good 1099.
And because I did 1099 many years ago , had no idea what was getting into, wound up with a massive tax bill.