Benifits For Your Drivers?

Discussion in 'Ask An Owner Operator' started by XiZBiT, Dec 14, 2007.

  1. XiZBiT

    XiZBiT Light Load Member

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    First off, I would say I am sorry, but at this point its been more of an attack on me so I am defensive at this point.

    I came to this forum looking for answers, from experienced O/O's with drivers. And now has evolved to less then favorable conditions. I have no issue with constructive critisim, which some threads have been and some of just been less then.

    I have my drivers intrest at heart, without them I dont make any money. I want to do the right thing and will do the right thing. I have spoken with both my cpa and attorney and have found the following:

    I can legally 1099, however there are risks involved as stated. The biggest issue is workers compinsation. Let me give you this example:

    Bob's construction company hires contractors for various jobs such as tile, plumbing etc. This happens every day and will 1099 the contrator for plumbing services once the job is complete. However if Joe's plumbing company does not have workers compinsation and Joe gets hurt while doing plumbing on the job, Bob can be sued for medical bills etc. even though Joe is a llc or corp etc. Even with a legal contract Bob can still be dragged theu thru the court system.

    No one is safe from a contractor of any type that does not have thier own workers comp. Another note to this is if Joe does not file his taxes when the tax man comes for him, Bob may end up paying both parts of the taxes for Joe. Its really a messed up system.

    Dispite my defensive comments and attacks this has opened my eyes and I have setup an account with a local PEO service that handles leased employees and the ability to provice benifits etc.
     
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  3. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    I don't doubt that you want the best for your drivers. At the same time you have to protect your interests.


    I'm just curious as to how your CPA and lawyer are getting around the IRS rules.


    If you provide the tools for the job you are an employer
    and unless they completely work when they want to, you are an employer.

    Do you mind explaining what they said on this? thanks
     
  4. Pur48Ted

    Pur48Ted Road Train Member

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    First of all, let us dispense with the BS for a minute.
    Since you don't know me or anything about me, in the future please try to refrain from making yourself look ignorant by assuming you know me well enough to say that I would be someone with "THEIR" (that's how it is spelled, BTW) "hand out looking for something for nothing".

    No where in ANYTHING I have said on this or any other forum, would lead anyone with intelligence to that conclusion.

    Perhaps you SHOULD "dred" meeting me, or others like me, because we have YOUR NUMBER, as well as the number of everyone else like you. And WE know our rights, and WE aren't going to allow liars and con-men take from us, what WE EARNED.

    I have NEVER IN MY LIFE taken what was not mine, and YOU SIR (and I use that term lightly) owe ME an apology.

    Now on the subject of this thread:
    FIRE your CPA, because he is as stupid as the day is long. I have been around long enough to have been acquainted with "employers" like you on many occasions. They promise the world, but piss them off, and they refuse to pay you. Funny thing is, most those crooks hide behind religion. Do You?

    As I stated; I have successfully sued TWO "employers" just like that.

    Perhaps you should climb down from your self-built throne and read the information that is on the IRS' own website for which I provided the link for, and which says in part:

    Who is a Common-Law Employee (Employee)?
    Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.
    To determine whether an individual is an employee or independent contractor under the common law, the relationship of the worker and the business must be examined. All evidence of control and independence must be considered. In an employee-independent contractor determination, all information that provides evidence of the degree of control and degree of independence must be considered.
    Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. Refer to Publication 15-A, Employer's Supplemental Tax Guide for additional information.
    Who is an Employee?
    A general rule is that anyone who performs services for you is your employee if you can control what will be done and how it will be done.
     
  5. Pur48Ted

    Pur48Ted Road Train Member

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    There is NO SIMULARITY between hiring drivers for YOUR trucks and "BOB" the builder hiring a Plumbing Contractor (who MUST be licensed as a "Plumbing Contractor" in the State where he works, in many instances be licensed locally as well and provide his own tools)
     
  6. XiZBiT

    XiZBiT Light Load Member

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    Hide behind my religon.... not a religous man at all. To say I am is unfair, and I deserve it, as I called you out unfaily. The first thing that comes to mind when you hear someone sued is they have thier hand out. Maybe I am wrong about you as your are about me. I would never hold someones pay or try to short my guys.


    I do not control the worker, he has a deadline to meet. He is assigned a load time and delevery time, its at his/her choice as to when to leave to pick up the load and has a delevery time, again his choice when to head out.

    I could have a lease aggreement drawn up where the driver leases the truck ffrom me for X per week. The check could be cut with the cost of the lease and then deducted. So if I charge 100.00 dollars per week and the driver get 1000.00 per week I cut a check for 1100.00 and deduct 100.00 for the lease. Now I no longer provide the tools to do the job.
     
  7. Roadmedic

    Roadmedic Road Train Member

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    I have dealt with the issue of an employer treating the employee as contract labor. There is no gray area here. Your CPA and attorney are wrong. The IRS has issued guidelines as to what constitutes an employee or contractor. They need to review this. See publication 1779 http://www.irs.gov/pub/irs-pdf/p1779.pdf

    I have seen no way that an owner who provides the truck, fuel and tells the driver when to work, hours to work, and no way they can work elsewhere, can not be classified as an employer. Anytime you are advised about possible workmen's compensation problems you ARE an employer.

    Considering the comment, I could have a lease drawn up... You don't now, so you are an employer.

    If you doubt what I say, I have been active as a enrolled agent to practice before the IRS since 1986. I have prepared many tax returns and fought many IRS audits. This is an area the IRS is after. Just because they haven't done any in your area does not make it legal. Call the IRS and ask them about publication 1779 and your situation.

    It only makes good sense to be legal in all respects.
     
  8. Pur48Ted

    Pur48Ted Road Train Member

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    You #### SKIPPY you are wrong about me. And I have YET to see your apology.




    If YOU control where the driver goes, what time to pick up/deliver...YOU ARE AN EMPLOYER.
    Plain and simple. But you are going to do what you want to do anyway. Just don't say no one told you and don't come crying here when you find your butt in a sling.
     
  9. Pur48Ted

    Pur48Ted Road Train Member

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    You dayem skippy you called me out unfairly. If you had read my post, you would have seen that the first "employer" paid me with a BAD CHECK and instead of HONORING the check when he had money to cover it, HE CANCELLED the check, forcing me to file a complaint with the Michigan Dept of Labor. He LOST, appealed, LOST AGAIN and appealed again. He lost a THIRD TIME. It took me 14 months to get my last $1400 from him. He even followed me here to this forum over two years later and tried to cause me problems here.

    The SECOND employer I just prevailed against Dec 3, I worked for when I was on the Gulf Coast after the Hurricanes of 2005 doing storm clean-up.
    HE was told by his Prime Contractor that he SHOULD be getting paid 3X what he was being paid by his "up-stream" contractor. Three months later, the PRIME Contractor informed all the "employees" of all the Contractors that the prevailing wage was set at by FEMA which was 3.88 per hour more than I was being paid. FEMA had also indicated that ALL employees be paid 1 1/2X rate after 8 hours per day and 2X rate for Sunday which I was not being paid. When I approached employer, I was fired (in violation of State and Federal Laws), he with-held my last check; charging me for Workers Comp and State Disability (again violating State and Federal Laws) forcing me to hire a lawyer and file suit myself. Even though the State of Louisiana has STRICT Labor Laws, there is NO PROVISION for the State to enforce the laws, the employee has to file suit himself.
    The GOOD thing is that even though this employer only owed me about $2400 in Statutory wages and overtime, I will be able to collect almost $15k and have the Lawyer Fees paid by the employer.
    He would have been better off to pay me what he owed me (as well as all other employees that worked for him....two of us filed a Class Action on behalf of ALL employees). So, in BOTH cases...YES, I had my "hand out", but only for what was rightfully mine.




    But YOU tell the driver WHERE and WHAT to pick up. THAT makes him an employee. Perhaps you should discuss your idea first with the IRS and then with the Dept of Labor in the State you live/Operate in.
    In MANY States, even if YOU own the truck and lease with a Carrier, if the Carrier tells you what to haul, where to pick it up/deliver it and what time to pick up/deliver....you are STILL considered an employee.
    Been there/done that. I am not just pulling this information out of my butt.
    I NEVER said you would "short your guys". In fact, in my statement; I put the disclaimer:
     
  10. MedicineMan

    MedicineMan Road Train Member

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    Alright,lets put it this way.

    If it were legal to 1099 a truck driver thereby doing away with the witholding taxes, benifits and workmans comp.... Don't you think swift and the other large carriers who will do ANYTHING to pinch a penny would be doing it?

    nuff said:biggrin_2551:
     
  11. im6under

    im6under Heavy Load Member

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    hence that now world famous phrase...

    "no forced dispatch"

    as in we aren't employers... and you'd better have your own workman's comp insurance cause you ain't suing us buddy...

    though it is written like we are your buddy... look no forced dispatched, we like you, you pick the loads and you choose...

    *que DARTH VADER music" muwahhhhahahahaaaaa:biggrin_2551:
     
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