chance to work for O/O small company or mega company Which should I choose

When I first started out and under say about 2 years experience, I had worked for 2 o/o's.

I was paid on a 1099 back then.

I got paid by a percentage of the gross. (25%)

If the trailer was empty, since I was paid by the gross, 25% of nothing was still nothing to earn, but hey, back then, I drove 2 BRAND NEW PETERCARS!

I got nothing in health benefits.

I was "given" an advance on the load for fuel, tolls, which BOTH trucks back then sucked up fuel faster than a newborn sucking up mama's milk. So needles to say, I'd barely make it to a fuel stop with cash on hand, and if I was running with an empty trailer, I HAD to find loads, oh yeah, brand new guy looking for loads.

But, I WAS DRIVING BRAND NEW PETERCARS!

I lasted all of about 1.5 months for those fools, taking advantage of a newbie. I needed a job, GOT the job, but gotten taken advantage of by those who knew how to screw me out of money.

BUT HEY, I GOT TO DRIVE BRAND NEW PETERCARS!

Do as you wish, it is "your friend", but I'd nary trust a friend anymore than I'd trust a stranger!

 

The benefits package of most companies these days don't really amount too much. Not saying there aren't a few who do have a good benefits package, however, if you're just getting back into the industry, you might not be able to get your foot into the door of one of those companies right now anyways.

Many companies are going to the high deductible HSA qualifying insurance programs for their employees. Nothing to write home about, especially when you can buy the same thing in the Marketplace pretty competitively if you live in a state that is part of the Obamacare exchange. Add a week's paid vacation and a up to 5% total employer match on a pension plan, that's really not much of a benefit package.

 

Large or small.......it doesn't matter. It is all about your relationship with your dispatcher/fleet manager. If you come off like a tool, you will find almost any company about as warm as a prison shower.

 

The 1099 tax method raises a red flag on this small employer to me. If it was me, I would stay away from this one. Others with more expertise than me have posted info on this site about the 1099 issue.

Small companies tend to use the 1099 independent contractor method incorrectly. You not only have to pay the income tax but also the FICA tax which is almost double what you would pay via a W-2 employer. The FICA tax is 13- 14 % for a self employed person versus 7.65% for a W-2 employee. Plus you may need to use an accountant to get your taxes paid correctly, which will be an additional cost of hundreds of dollars. And no benefits either....which are mostly all tax free.

Plus, will your buddy follow the regs on drug testing? Does he have a pool of drivers to do random drug testing? Does he keep the individual driving records he is supposed to keep? I would guess not. If he doesn't like the paperwork of doing tax withholding, he likely isn't going to do the drug testing procedures either. What about liability insurance? Will you be covered by his policy? I would get a copy of his policy to see what it says about hired drivers.

I have worked for a small trucking company and was paid as an employee with W-2 tax withholding. He had a drug testing pool done by a company he contracted with. The small companies can follow all the rules, but they seem more likely to not be informed about them. I have nothing against small trucking companies, as I liked the one I worked for and was lucky he followed the regulations and I did not have to worry about something coming back to haunt me after I got paid.

Do you really qualify to be classified as an independent contractor? Do you furnish your own tools and equipment? (No, he is furnishing the truck). Really small companies like to go the 1099 route, but usually no one involved understands that if they are audited by the IRS they will have a problem meeting the IRS rules for Independent Contractors.

You don't have go to a mega company to get a good driving job. I have seen companies with 50 - 100 trucks that have good benefits and treat you well.

Wish you the best of luck in your driving career.

 

Be sure to save PLENTY of cash to pay your taxes. I know of a 1099 driver who didn't save $ for his taxes and got into big trouble. Also, does anyone know, are 1099 taxes due every quarter, or just once per year? And yes, the extra 7% for Social Security taxes plus paying a tax accountant means 40 cents/mile is really closer to 31 cents/mile as paid by a big company. They might also try to stiff you by tacking on all taxes for oil, DEF, and anything else you buy to run the truck. I guess they expect you to keep the receipts and write off the expenses. If they get the receipts then they get the tax write off while you get the tax expenses.

But beggars can't be choosers. If this is the best job you can get, try to make the best of it until you have verifiable experience.