Benifits For Your Drivers?

Matthews · Mar 9, 2008

Brickman said: ↑

Having been independent and then a lease O/O with Landstar I have to tell you there are two sides to the issue.
When I was independent I was working 100+ hrs in 8 days, and this was after I had hid all the hours I could on my loose leaf book. Leased to Landstar I HAD to run legal, 70 in 8, and made just as much money if not more as before. Even giving up a % to them it was worth it for the better loads and having them as my sales team.
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Its going to " NOT WORTH HOLDING OUR OWN AUTHORITY" Real FAST!

INS, FUEL, DRIVERS wages are KILLING US FAST!

The FREIGHT FSC, and the rate these days is dam near JUST enough to cover the TRUCK and FUEL ONLY!

WHAT ABOUT THE DRIVERS?

Getting SCARY!

TX_Proud · Mar 9, 2008

roadkill439342 said: ↑

But the point is that by simply saying "take the load or not" does NOT mean the company is "NON-FORCED DISPATCH". The IRS ONLY considers a company that offer a "choice" of SEVERAL loads (at least MORE than ONE) as TRUE "Non-Forced" Dispatch and MIGHT consider the company that does not as an "EMPLOYER". But hell, don't take MY word for it, call them yourself and ASK them.
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There is a difference in a small carrier with a few company trucks and a handful of O/O leased on and some of the larger lease carriers. Brickman can probably shed some light on this as well. A small carrier who has O/O leased on is basically working as a dispatcher for O/Os who want someone to find loads for them, do the paperwork, and act as their "agent." The larger lease carriers, like Landstar, MasonDixon, UACL, etc. have proprietary load boards that are not available to non-leased trucks and as such they have the abililty to search for their own loads from a variety available through their respective carrier. What isn't covered by their company trucks and their lease operators is brokered out on the general load boards. The point is that the smaller operations should probably be receiving a 1099 from the O/O for the services they provide the O/O, i.e., paying their "agent" for services provided, assuming the O/O has their own authority. Because most of the O/Os leased on with the smaller outfits probably don't have their own authority, they need to run under someone elses. The shipper/broker is by law required to pay the freight charge to the carrier with the authority.

The reality is that the O/Os don't want to hassle with the compliance issues, IFTA reporting, billing, collecting, load finding, etc.

Bottom line is get your own authority and hire an agent to do the things you don't or can't do.

Matthews · Mar 9, 2008

TX_Proud said: ↑

There is a difference in a small carrier with a few company trucks and a handful of O/O leased on and some of the larger lease carriers. Brickman can probably shed some light on this as well. A small carrier who has O/O leased on is basically working as a dispatcher for O/Os who want someone to find loads for them, do the paperwork, and act as their "agent." The larger lease carriers, like Landstar, MasonDixon, UACL, etc. have proprietary load boards that are not available to non-leased trucks and as such they have the abililty to search for their own loads from a variety available through their respective carrier. What isn't covered by their company trucks and their lease operators is brokered out on the general load boards. The point is that the smaller operations should probably be receiving a 1099 from the O/O for the services they provide the O/O, i.e., paying their "agent" for services provided, assuming the O/O has their own authority. Because most of the O/Os leased on with the smaller outfits probably don't have their own authority, they need to run under someone elses. The shipper/broker is by law required to pay the freight charge to the carrier with the authority.

The reality is that the O/Os don't want to hassle with the compliance issues, IFTA reporting, billing, collecting, load finding, etc.

Bottom line is get your own authority and hire an agent to do the things you don't or can't do.
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Nicely Illustrated!
Good JOB - Hand...

Pur48Ted · Mar 9, 2008

AgainstAllOdds said: ↑

OK enlighten me since you're real sharp with the laws and the regulations...
Where is the difference between an employee and independent contractor ?
Why should a driver consider being treated as an employee instead of and independent contractor ? ( money related )
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Let me state my experience FIRST, and then I will back it up with FACTS.
First of all, a member of my immediate family has a Master's Degree in Business/Labor Relations (30 years experience) and is the President of IUOE Local 547 in Detroit. I get MUCH of my information from HER.

When my wife and I bought a truck (and trailer) in 1995, in order to comply with Michigan Laws (as well as Federal Laws) we almost ran into problems with the first two companies we leased to. Thankfully, we didn't stay with either company very long and our "exposure" was limited. It was shortly after that time that we leased with another Carrier and in order to be classified as an "Independent Contractor" he HAD to at least offer us a choice between at least two loads when I was empty. Otherwise he would have been liable to pay my WC (Workers Comp), SS Withholding, Unemployment and at least the "employer's" share of Federal Withholding. HE knew that and that is how HE operated.

The SAME was true when we then leased to Landstar. In order to comply with the FEDERAL Statutes that determine the difference between an "employee" and a "contractor", Landstar did the same, except they offered a choice between well OVER "two" loads. It is ALL about CONTROL. If the "Company" maintains "control" over WHERE YOU GO, HOW you perform your duties and WHAT TIME you perform those duties, you MAY BE an "employee, even if you own the truck.

Now to the FACTS that support this position:

http://www.irs.gov/taxtopics/tc762.html

Topic 762 - Independent Contractor vs. Employee
To determine whether a worker is an independent contractor or an employee under common law, you must examine the relationship between the worker and the business. All evidence of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories Behavioral Control, Financial Control, and the Type of Relationship itself.
Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.
Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job. This includes:

The extent to which the worker has unreimbursed business expenses,

The extent of the worker's investment in the facilities used in performing services,

The extent to which the worker makes his or her services available to the relevant market,

How the business pays the worker, and

The extent to which the worker can realize a profit or incur a loss.

Type of Relationship covers facts that show how the parties perceive their relationship. This includes:

Written contracts describing the relationship the parties intended to create,

The extent to which the worker is available to perform services for other, similar businesses,

Whether the business provides the worker with employeetype benefits, such as insurance, a pension plan, vacation pay, or sick pay,

The permanency of the relationship, and

The extent to which services performed by the worker are a key aspect of the regular business of the company.

For more information, refer to Publication 15-A (PDF), Employer's Supplemental Tax Guide, or Publication 1779 (PDF), Independent Contractor or Employee. If you want the IRS to determine whether a specific individual is an independent contractor or an employee, file Form SS-8 (PDF), Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
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[FONT=verdana, geneva, helvetica][SIZE=+1]Your Rights as an Independent Contractor[/SIZE][/FONT] [FONT=verdana, geneva, helvetica]Part 1: Independent Contractor or Employee[/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Probably the main reason you became an independent contractor (aka consultant, freelance and IC) or want to, is to be your own boss. Unfortunately, some U.S. companies don't fully understand the difference between independent contractors and employees. Even among companies that do understand the difference, there are those that attempt to exploit the relationship, because it's clearly to their advantage to do so.
Companies don't have to withhold federal, state and Social Security (FICA) taxes, or pay unemployment or workers' compensation insurance for independent contractors. They also don't need to offer benefits like paid sick leave, vacation, health insurance and stock options, as they do to attract and retain employees. In fact, companies don't have to offer much of anything to independent contractors, except that for which they've agreed by contract (independent contractor agreement). That saves tons of paperwork and big bucks, giving dishonest companies lots of incentive to cheat independent contractors of their rights. The cheaters (and naive) misclassify workers as independent contractors, but still attempt to control them as employees. In doing so, they reap the benefits of both worlds, while depriving independent contractors of the very reason they became independent contractors in the first place: to be their own bosses.
Many misclassified independent contractors don't fully understand the difference either, which helps to perpetuate the problem. Here's how it's supposed to work when you are correctly classified as an independent contractor:

Companies are not your employers per se, but your clients. As such, they are not entitled to direct you in your work.

Of course, your clients have a right to say what they expect for the rates they're paying you, but only as it relates to the outcome of the project.

It's your right to decide when, where and how to get the project done.

Natch, it's wise for you to satisfy your clients at the project level, if you wish to get paid and receive favorable referrals for landing more contract jobs. But that doesn't mean you must allow a client to control you as an employee. That's against the law.
In other words, by U.S. law, an employer cannot classify you as an independent contractor, then dictate when, where and how you work, as though you are an employee. It's all about degree of control and independence.

[FONT=verdana, geneva, helvetica][SIZE=-1]Part 2: Independent Contractor Law - Control vs. Independence

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[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Several U.S. government agencies have good reason to be interested in whether or not workers are correctly classified, including the Department of Labor, Social Security Administration, Workers' Compensation Offices, and Internal Revenue Service (IRS).

Because companies don't withhold taxes for independent contractors, independent contractors are supposed to pay their own taxes quarterly. But many don't, intentionally or naively. That makes the rest of us pay more to the government agencies "robbed" of funds.

When companies misclassify employees as independent contractors, they are not paying into FICA, disability, unemployment and other useful government programs. This ultimately cheats all workers of their rightful benefits.

It's the government's job to protect workers from exploitation. Misclassification cheats independent contractors of their rights as self-employed individuals. It might also cause them undue stress, because they feel pressured to put up with it just to keep working.

Under US law, you are either an employee or an independent contractor. It's one or the other. There is no in between. The IRS has taken the lead in helping employers correctly classify their workers, by developing the "Common-Law Rules". The IRS formerly called them the "Twenty Common Law Factors". (See the glossary entry Common Law for a definition.)
On the flip side, the common-law rules also help independent contractors determine if they are exploited as employees. They are not hard and fast rules. Every situation is different and the IRS doesn't want to overly restrict the business of either employers or independent contractors. Rather they are broad guidelines that attempt to consider the whole picture. But the underlying principle is to measure the degree of control employers have over independent contractors, verses the degree of independence independent contractors have from employers.
Several Federal and state government agencies have their own independent contractor vs. employee rules, too. For example, the U.S. Department of Labor (DOL) enforces its rules under the Fair Labor Standards Act (FLSA). All such agencies typically allow some give and take on both sides of the fence, but for the most part, independent is the operative word in independent contractor.
If companies misclassify their workers, they risk getting audited by one or more of the agencies mentioned above, and then some. Although all agencies concerned are always on the lookout for violators, the IRS takes the lead here too, and aggressively so. If it finds a company guilty of misclassifying its workers, the IRS might require the company to pay all back withholding taxes plus interest, even if the misclassified independent contractors have already paid their taxes. The IRS might also levy huge fines and press criminal charges against the company officials. Once the IRS moves in, it opens the doors for the other agencies to collect their due. If there's anything left, the misclassified independent contractors might collect, too. Misclassified independent contractors have successfully sued for unemployment insurance, stock options, overtime pay, retirement benefits, profit sharing, disability payments, workers' compensation and more, in so-called "permatemps" and related lawsuits.
But you don't have to wait for an agency to make its move before you do. If you think you've been misclassified as an independent contractor to your disadvantage, you may complete Form SS-8 to ask the IRS to make a determination. If the IRS determines that you are essentially an employee of a company, that in turn might open the door for you to file a lawsuit under the FLSA, state unemployment insurance laws, or other Federal or state labor laws. But it's a good idea to consult with an attorney first, to determine if starting with the IRS is the best route.

[FONT=verdana, geneva, helvetica][SIZE=-1]Part 3: IRS Common-Law Rules for Independent Contractors[/FONT]

[/FONT][/FONT]
[/SIZE][/FONT][/SIZE][/FONT][FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Below are the Common-Law Rules (formerly Twenty Common Law Factors) from the IRS. (See the glossary entry common law for a definition.) They help employers correctly classify workers as employees or independent contractors. They also help independent contractors determine if they've been correctly classified or not. Please be sure to check for the latest update at the IRS site. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Also click the link Employment Relationship under the Fair Labor Standards Act (FLSA) in the sidebar.[/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Common-Law Rules[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]To determine whether an individual is an employee or an 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 any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered.[/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]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 as shown below. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Behavioral control. Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of-- [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Instructions the business gives the worker. An employee is generally subject to the business' instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work: [/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]
[*]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 [/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]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. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Training the business gives the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Financial control. Facts that show whether the business has a right to control the business aspects of the worker's job include: [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]The extent to which the worker has unreimbursed business 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 they perform for their business. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]The extent of the worker's investment. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractor status. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]The extent to which the worker makes services available to the relevant 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. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]How the business pays the worker. 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. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]The extent to which the worker can realize a profit or loss. An independent contractor can make a profit or loss. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Type of relationship. Facts that show the parties' type of relationship include: [/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]
[*]Written contracts describing the relationship the parties intended to create.
[*]Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay.
[*]The permanency of the relationship. If you engage 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 your intent was to create an employer-employee relationship.
[*]The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of your regular business activity, it is more likely that you 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.[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]IRS help. If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
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[FONT=verdana, geneva, helvetica][SIZE=-1]Part 4: IRS Industry Examples for Independent Contractors

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[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Below are examples of determining whether a worker is an independent contractor or employee, courtesy of the IRS. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Industry Examples[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]The following examples may help you properly classify your workers. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Building and Construction Industry[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 1. Jerry Jones has an agreement with Wilma White to supervise the remodeling of her house. She did not advance funds to help him carry on the work. She makes direct payments to the suppliers for all necessary materials. She carries liability and workers' compensation insurance covering Jerry and others he engaged to assist him. She pays them an hourly rate and exercises almost constant supervision over the work. Jerry is not free to transfer his assistants to other jobs. He may not work on other jobs while working for Wilma. He assumes no responsibility to complete the work and will incur no contractual liability if he fails to do so. He and his assistants perform personal services for hourly wages. They are employees of Wilma White. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 2. Milton Manning, an experienced tilesetter, orally agreed with a corporation to perform full-time services at construction sites. He uses his own tools and performs services in the order designated by the corporation and according to its specifications. The corporation supplies all materials, makes frequent inspections of his work, pays him on a piecework basis, and carries workers' compensation insurance on him. He does not have a place of business or hold himself out to perform similar services for others. Either party can end the services at any time. Milton Manning is an employee of the corporation. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 3. Wallace Black agreed with the Sawdust Co. to supply the construction labor for a group of houses. The company agreed to pay all construction costs. However, he supplies all the tools and equipment. He performs personal services as a carpenter and mechanic for an hourly wage. He also acts as superintendent and foreman and engages other individuals to assist him. The company has the right to select, approve, or discharge any helper. A company representative makes frequent inspections of the construction site. When a house is finished, Wallace is paid a certain percentage of its costs. He is not responsible for faults, defects of construction, or wasteful operation. At the end of each week, he presents the company with a statement of the amount he has spent, including the payroll. The company gives him a check for that amount from which he pays the assistants, although he is not personally liable for their wages. Wallace Black and his assistants are employees of the Sawdust Co. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 4. Bill Plum contracted with Elm Corporation to complete the roofing on a housing complex. A signed contract established a flat amount for the services rendered by Bill Plum. Bill is a licensed roofer and carries workers' compensation and liability insurance under the business name, Plum Roofing. He hires his own roofers who are treated as employees for Federal employment tax purposes. If there is a problem with the roofing work, Plum Roofing is responsible for paying for any repairs. Bill Plum, doing business as Plum Roofing, is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 5. Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, which she obtained through advertisements. Vera is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Trucking Industry[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example. Rose Trucking contracts to deliver material for Forest Inc. at $140 per ton. Rose Trucking is not paid for any articles that are not delivered. At times, Jan Rose, who operates as Rose Trucking, may also lease another truck and engage a driver to complete the contract. All operating expenses, including insurance coverage, are paid by Jan Rose. All equipment is owned or rented by Jan, and she is responsible for all maintenance. None of the drivers are provided by Forest Inc. Jan Rose, operating as Rose Trucking, is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Computer Industry[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example. Steve Smith, a computer programmer, is laid off when Megabyte Inc. downsizes. Megabyte agrees to pay Steve a flat amount to complete a one-time project to create a certain product. It is not clear how long it will take to complete the project, and Steve is not guaranteed any minimum payment for the hours spent on the program. Megabyte provides Steve with no instructions beyond the specifications for the product itself. Steve and Megabyte have a written contract, which provides that Steve is considered to be an independent contractor, is required to pay Federal and state taxes, and receives no benefits from Megabyte. Megabyte will file a Form 1099-MISC. Steve does the work on a new high-end computer which cost him $7,000. Steve works at home and is not expected or allowed to attend meetings of the software development group. Steve is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Automobile Industry[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 1. Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective customers belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 2. Sam Sparks performs auto repair services in the repair department of an auto sales company. He works regular hours and is paid on a percentage basis. He has no investment in the repair department. The sales company supplies all facilities, repair parts, and supplies; issues instructions on the amounts to be charged, parts to be used, and the time for completion of each job; and checks all estimates and repair orders. Sam is an employee of the sales company. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example 3. An auto sales agency furnishes space for Helen Bach to perform auto repair services. She provides her own tools, equipment, and supplies. She seeks out business from insurance adjusters and other individuals and does all the body and paint work that comes to the agency. She hires and discharges her own helpers, determines her own and her helpers' working hours, quotes prices for repair work, makes all necessary adjustments, assumes all losses from uncollectible accounts, and receives, as compensation for her services, a large percentage of the gross collections from the auto repair shop. Helen is an independent contractor and the helpers are her employees. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Attorney[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example. Donna Yuma is a sole practitioner who rents office space and pays for the following items: telephone, computer, on-line legal research linkup, fax machine, and photocopier. Donna buys office supplies and pays bar dues and membership dues for three other professional organizations. Donna has a part-time receptionist who also does the bookkeeping. She pays the receptionist, withholds and pays Federal and state employment taxes, and files a Form W-2 each year. For the past 2 years, Donna has had only three clients, corporations with which there have been longstanding relationships. Donna charges the corporations an hourly rate for her services, sending monthly bills detailing the work performed for the prior month. The bills include charges for long distance calls, on-line research time, fax charges, photocopies, postage, and travel, costs for which the corporations have agreed to reimburse her. Donna is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Taxicab Driver[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Example. Tom Spruce rents a cab from Taft Cab Co. for $150 per day. He pays the costs of maintaining and operating the cab. Tom Spruce keeps all fares he receives from customers. Although he receives the benefit of Taft's two-way radio communication equipment, dispatcher, and advertising, these items benefit both Taft and Tom Spruce. Tom Spruce is an independent contractor. [/FONT][/FONT]
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Salesperson[/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]To determine whether salespersons are employees under the usual common-law rules, you must evaluate each individual case. If a salesperson who works for you does not meet the tests for a common-law employee, discussed earlier, you do not have to withhold income tax from his or her pay (see Statutory Employees earlier). However, even if a salesperson is not an employee under the usual common-law rules, his or her pay may still be subject to social security, Medicare, and FUTA taxes. To determine whether a salesperson is an employee for social security, Medicare, and FUTA tax purposes, the salesperson must meet all eight elements of the statutory employee test. A salesperson is an employee for social security, Medicare, and FUTA tax purposes if he or she: [/FONT][/FONT]

[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]
[*]Works full time for one person or company except, possibly, for sideline sales activities on behalf of some other person,
[*]Sells on behalf of, and turns his or her orders over to, the person or company for which he or she works,
[*]Sells to wholesalers, retailers, contractors, or operators of hotels, restaurants, or similar establishments,
[*]Sells merchandise for resale, or supplies for use in the customer's business,
[*]Agrees to do substantially all of this work personally,
[*]Has no substantial investment in the facilities used to do the work, other than in facilities for transportation,
[*]Maintains a continuing relationship with the person or company for which he or she works, and
[*]Is not an employee under common-law rules. [/FONT][/FONT]

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Pur48Ted · Mar 9, 2008

TX_Proud said: ↑

There is a difference in a small carrier with a few company trucks and a handful of O/O leased on and some of the larger lease carriers. Brickman can probably shed some light on this as well. A small carrier who has O/O leased on is basically working as a dispatcher for O/Os who want someone to find loads for them, do the paperwork, and act as their "agent." The larger lease carriers, like Landstar, MasonDixon, UACL, etc. have proprietary load boards that are not available to non-leased trucks and as such they have the abililty to search for their own loads from a variety available through their respective carrier. What isn't covered by their company trucks and their lease operators is brokered out on the general load boards. The point is that the smaller operations should probably be receiving a 1099 from the O/O for the services they provide the O/O, i.e., paying their "agent" for services provided, assuming the O/O has their own authority. Because most of the O/Os leased on with the smaller outfits probably don't have their own authority, they need to run under someone elses. The shipper/broker is by law required to pay the freight charge to the carrier with the authority.

The reality is that the O/Os don't want to hassle with the compliance issues, IFTA reporting, billing, collecting, load finding, etc.

Bottom line is get your own authority and hire an agent to do the things you don't or can't do.
Click to expand...

Not necessarily true. I was leased to a SMALL carrier in Michigan: JJ Elderidge of Lake Odessa, MI. He had 6 trucks and 12 Leased on (mine included) In order to be classified as a TRUE "Independent Contractor", he HAD to offer me a choice of more than ONE load, he HAD to allow me the freedom to operate where, when and how I determined.

Matthews · Mar 9, 2008

Rules change and so do laws in effect.
Those where Copy/Paste from http://jobsearchtech.about.com

I also seen the copyright " DATE" as stated below
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Job Searching: Technical supports Equal Opportunity Employment.
Copyright © 2000, J. Steven Niznik. All Rights Reserved.

<hr>

I cant say its not good information! It is... And its ON TARGET.

But, we actually cant discuss this topic and assume proper data!

The FINE LINE detail's in ones CONTRACT / LEASE is what the LESSEE goes by. Even sometimes going above what the general LAWS state, The LESSOR will use a CYOA technique. We've all see that!

No matter what the situation the O/O or lessee needs to watch that all hit T's are Crossed and I's are Dotted!

Johnnie LAW don't care where you got the information or who your lawyer is!
If its the LAW, He will go by LAW!

We need to remember that LAWS do change and " WITHOUT " Notice to US!

My 2?
Matthew Sr.

[/FONT][/FONT][/FONT]

Pur48Ted · Mar 9, 2008

Matthews said: ↑

Its going to " NOT WORTH HOLDING OUR OWN AUTHORITY" Real FAST!

INS, FUEL, DRIVERS wages are KILLING US FAST!

The FREIGHT FSC, and the rate these days is dam near JUST enough to cover the TRUCK and FUEL ONLY!

WHAT ABOUT THE DRIVERS?

Getting SCARY!
Click to expand...

Why don't you start a petition and send it to the Supreme Court....

Eskimo6804 · Mar 9, 2008

Matthews said: ↑

Rules change and so do laws in effect.
Those where Copy/Paste from http://jobsearchtech.about.com

I also seen the copyright " DATE" as stated below
[FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica][FONT=verdana, geneva, helvetica]Job Searching: Technical supports Equal Opportunity Employment.[/FONT]
[FONT=verdana, geneva, helvetica]Copyright © 2000, J. Steven Niznik. All Rights Reserved.[/FONT]

[FONT=verdana, geneva, helvetica]<hr>[/FONT]

[FONT=verdana, geneva, helvetica]I cant say its not good information! It is... And its ON TARGET.[/FONT]

[FONT=verdana, geneva, helvetica]But, we actually cant discuss this topic and assume proper data![/FONT]

[FONT=verdana, geneva, helvetica]The FINE LINE detail's in ones CONTRACT / LEASE is what the LESSEE goes by. Even sometimes going above what the general LAWS state, The LESSOR will use a CYOA technique. We've all see that![/FONT]

[FONT=verdana, geneva, helvetica]No matter what the situation the O/O or lessee needs to watch that all hit T's are Crossed and I's are Dotted![/FONT]

[FONT=verdana, geneva, helvetica]Johnnie LAW don't care where you got the information or who your lawyer is![/FONT]
[FONT=verdana, geneva, helvetica]If its the LAW, He will go by LAW![/FONT]

[FONT=verdana, geneva, helvetica]We need to remember that LAWS do change and " WITHOUT " Notice to US![/FONT]

[FONT=verdana, geneva, helvetica]My 2?[/FONT]
[FONT=verdana, geneva, helvetica]Matthew Sr.[/FONT]

[/FONT][/FONT]
Click to expand...

Try not contradicting your own statements within the same post. You may gain a bit more credibility that way.

TX_Proud · Mar 10, 2008

I'll give you a real life example. We have company trucks but I also have one O/O with 2 trucks who runs under our authority. 90% of the time he is working his own loads with his own customers. He pays $100/month/truck for compliance, log record keeping, IFTA reporting, etc. and runs in-state only. When I do find loads for him (typically interstate), I get 10% of what the load pays. For that he gets funding in 2 days, billing and collections. I coordinate the loads, negotiate the rates and basically act as his agent. He is paid on a 1099 for all the loads I book; he gives me a 1099 for the fees he pays me monthly.

<Edit: I pay my company drivers on a W-2. They wanted to be paid on a 1099 but I explained I could not do that legally.>

Matthews · Mar 10, 2008

roadkill439342 said: ↑

Why don't you start a petition and send it to the Supreme Court....
Click to expand...

Why don't YOU be nic3 before you get your wings clipped?

I said you provided GOOD information! DID I NOT?

And WE cant actually provide CORRECT information on this!

Contracts and LEASE'S CHANGE like LAWS but the good this is at least one is 90% of the time notified of a LEASE or CONTRACT change.

LAWS? WE ARE NOT!

Sense we are not Lawyers we cant actually assume proper info - ROGER?

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