We can go thru this all day, from the 20 point IRS check list he would fall under an independent contrator but will sit with the CPA on Monday to iron this out. If I have to place them as an employee I will cut wages to avoid lawsuits. figure it out on Monday.
Benifits For Your Drivers?
Discussion in 'Ask An Owner Operator' started by XiZBiT, Dec 14, 2007.
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OOPS, wrong again
Oh and by the way, "your" is a statement of ownership, "you're" is
a contraction for "you are".
But hey what do I know, I'm just a lowly truck driver, and you are a big time college edigumacated businessman. -
Oh by the way, this is how I see it.
You fancy yourself a slick businessman,
So you lure in drivers with the promise of a paycheck without FICA or anything else withheld from it, and a shiny, chicken light ridden, chromed up, and pimped truck.
Said drivers are naive, and dazzled by the thought of playing "KING OF THE TRUCK STOP" with a wad of cash and a shiny rig with lots of doodads.
By the time the driver gets smart and realizes that he is "on the hook" for the taxes that you failed to withhold, you have already recruited another sucker and are badmouthing the first guy as a troublemaker.
You play these little games because the only sales tool you know how to use is "cutting the rate" -
It appears with what your bringing in and how much your paying for fuel, your running cheap freight. Looks like load board prices.
I think that you would have difficulty paying somebody else to drive your trucks. I also think you would be just scraping by with that driving yourself. I could be wrong but your numbers don't look good. -
O.K. so your 1099 your driver, fed. s/s & med. still have to be paid
either by the driver or by the employer.. uncle still gets his cut no matter who pay's.
and if you cant afford these so called extra's how are other co'.s doing it ? -
Wow now thats just ignorant. First off I tell every applicant that I am hiring them as a independent contrator, I explain that I am paying on a 1099 bases and they are responable for paying their taxes at the end of the year. I also tell them that they should put aside atleast 30% of thier checks weekly for taxes. Lets not forget that they can also right off various expenses that they would not be able to as an empoyee.
Ontop of that I explain that they will be responsable for their own workers comp as they are hired as contractor. I have a legal doc they sign excluding the company for any collections of workers compinsation benifits etc. Again I hold nothing back, I tell them strait.
By no means have I ever tried to be shady. When I explain to them the pay and taxing etc, I make sure that they are alright with it, if not then its off to the next. I have found only one applicant that was opposed to receiving a 1099 and the rest would prefer it that way. -
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I understand your desire to save money where you can, but when or if some thing went bad the way you are doing it is going to bite you in the butt for far more money than you think you are saving now. If some thing went wrong, even a mediocre lawyer is going to be able to blow right thru this set up in court.
Good luck, but you better check with a more knowledgeable CPA and lawyer!!!
Let us know what your CPA says. -
Just curious, Don't you think a statement like this is an ignorant statement?
$1,800 - $2,000 in fuel equals about 625 gallons of diesel fuel.
A truck will get about 6 mpg with a driver in it you are lucky
Thats 3,750 miles a week
That works out to about $0.93 a mile.
In 1986 when I bought my first tractor, that was a lousy rate.
Today it is working to go deeper in debt.
You couldn't make it if you drove the truck yourself.
In todays market it costs at least $1.20 a mile to operate without including the cost of the driver and that is a low ball figure. -
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