Back to the same old 1099 Vs. W-2 discussion.

Guntoter is correct most drivers being paid on 1099 are not IC. I was just answering his question of how to save money for taxes if he did take the job. I have filled out the form and my drivers are paid on 1099 legally according to the IRS. It can be done.

 

For a 1099, you must pay self employment tax. The actual tax that you should set aside is one third of your income, not one fourth. I knew guys that have done this, and they said it ended up being about a third.

Self employment tax is based on being an enterprise that has income and expenses. The problem for you is that you have no expenses to deduct.

Unless you are getting paid WELL BEYOND what you would make as an employee, it is only a good deal for the employer. They save a ton of money and you pay more in taxes.

 

It basically comes down to they actually own part of the truck and are making payments on it to own it out right.

 

So this is their truck, fuel everything. I just was offered and paid 1099. You saying I can't claim living expenses etc..... being on a 1099 Driver??

 

I notice that when they get down to the wire on the legality and one side provides links and the other does not offer anything other than opinions and they are being disproved, it always leads to closed threads.

 

I totally believe ya. All I know is what the guy said. Says he has 53 trucks running. I work for them as a 1099 and they take out 130 for work comp a month. Now if this might get me into trouble or it's a ripoff then I'll stay away. I was actually just asking cause Pay is interesting. Really NOT leaning that way but was curious offer presented. Thanks so much for your info.

 

Yes, that is true.

If you are not really self employed, you have no expenses to write off. Taking such expenses is like filing a false return or in trucker jargon, a false log.

You are told what to drive, they pay for the fuel, tell you where to pick up, set the rate, how to drive, when to deliver, check in and so forth. Just how is this really different from an employee?

 

Exactly i agree. Just wondering what/where the catches were. Was briefly interested. NO LONGER tho. Thanks all for info. Stay safe and Happy Holidays.