Company driver 1099 help

Whether you work for a W-2 company or on a 1099, you owe the same amount in taxes. There are more tax cheats in the 1099 world and many of the drivers working 1099 don't know they should be saving 30% of their "paycheck" to pay income & social security taxes, so they don't. Then the IRS finds them and demands the thousands of dollars you owe in the next 30 days. "If you lie down with dogs you will get fleas". Don't do 1099 unless you have years of experience and a bookkeeping system. If the company gives you the truck, the freight, you are not an independent contractor. You are an employee and should be a W-2 driver. The people that will cheat the IRS will cheat you all day, every day and never blink. Don't volunteer to be a victim. If you do, you deserve what happens.

 

You do pay more taxes being a 1099 contractor then an employee.Do to the self employment tax that company employees don’t pay.when you are a employee your employer pays half of your social security tax and when you’re self employed or 1099 you pay all of it this in it self is the biggest reason why some companies will classify you as a 1099 when in reality you’re really an employee so they don’t have to pay half of social security taxes .But as a 1099 you could also be held responsible for any damage you do to the vehicle.Some people like the idea of keeping all your money and being responsible for paying taxes quarterly but that can be trouble if you’re not responsible.

 

Hire a tax consultant to help you manage your money properly if you plan on doing the 1099. I'd steer clear of 1099 because of the various implications that can be tossed your way.

 

In the legal sense there is no such thing as a 1099 “company driver” position. If the company is looking to skirt the rules to lighten their tax burden and avoid work comp insurance then I’d ask myself what other regulations are they likely skirting while running their trucking company.

Taxes are minimal. I’d be more concerned about getting hurt on the job and having to pay for my own medical bills and also not having any recourse other than going to court if they decide to stop paying you.

 

The money only looks good. When you consider all the tax you have to pay, your actual net/net is the same as a w2, but you're not getting any w2 bennies like insurance or workman's comp, etc etc. Companies offering 1099 "company driver" positions are just shady ### places. What other kinds of shady ### #### are they going to pull? And even if they're not shady, they're definitely saying they don't give a #### about you as an employee and have no interest in investing in their employees. You can't do anything to cut back taxes in this situation except just don't pay them and hope the IRS doesn't ever find out.

 

If you're 1099 you're not a company driver. You're an independent contractor and whoever is trying to sell this nonsense to you is a scumbag. Run from them! Get a real W2 job then you will be an employee.

 

Stick to W-2. You really can't write off anything in the situation you're in. The guy hiring you is going to write off everything that you would b able to write off if you were a true owner op. If you try to do so, you may get audited. The cpm with a 1099 company is deceptive. Your bottom line won't be any better running with a 1099. I did it for some years to rehab my career. That's the only role those companies have is just that.....to help drivers rehab their careers. Once the can go to a reputable company, they should leave for a W-2 company.

 

Only time I saw 1099 work was the driver worked from spring up until November, bought a truck with the money he made, started a business and took a Section 179 deduction on the truck for the calendar year. Had to pay self employment tax (S.S. Medicare) but not much else. Started the next year with a paid off truck, leased to a good company and no debt.