Double Yellow's Company Driver to Independent Thread
Discussion in 'Ask An Owner Operator' started by double yellow, Nov 5, 2014.
Page 192 of 198
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The first question is: is it legitimate 1099 work? There is nothing wrong with 1099ing an independent contractor. Hell, the IRS will probably pay me this reward on a 1099.
Factors that indicate someone is an employee and not a 1099:
1) Scheduling: Does the employer control when & how long the contractor works?
2) Independence: Is the contractor free to work for other people? Does he use company tools & equipment or does he provide his own?
3) Profitability: Is the contractor primarily in control of generating a profit or loss? For example: can you fuel wherever you want?
4) Is the employer dependent on this type of work on an ongoing basis? Is this just a short term contract/temporary overflow of work? Or would the employer cease to exist without this category of contractor?
5) Benefits: Does the employer offer retirement, health plans, or other benefits to entice workers to stay long-term?
As you can imagine, there are lots of gray areas. Landstar, for instance, checks some of those boxes but (imo) it is legitimately 1099ing their contractors. Sure, they would be decimated if all the 1099 workers left, but they would still have a brokerage doing mostly the same job it does now. Landstar drivers have to meet Landstar requirements and abide by Landstar policies, but they are fairly loose and mostly for legal/safety reasons.
What makes them contractors is that Landstar drivers provide their own equipment and can mostly do what they want with it. They can work if and when they want. They can fuel and repair where they want. They can pick which individual jobs they want to do.
In contrast, the company I reported owned the trucks and told the drivers where to fuel and where to get repairs done. They told the drivers when to work and when they could take off (2 weeks on, 2 days off). They told the drivers what jobs to do. They did not have a brokerage and did not have w2 drivers so if the 1099 "contractors" stopped showing up, they would no longer have a business...
The 2nd thing to consider when making a report is whether an understaffed IRS will care enough to look into it. A company with 5 trucks probably isn't worth the time/money to investigate because the penalties wouldn't even cover the cost of the investigation. A company with 50+ trucks probably would start to get their attention.
This one was out of Sacramento proper. It seemed to have expanded almost overnight to 100 trucks, but is now gone (or has chameleoned). They did a lot of CA to Chicago and had the feeling of a reincarnated Chicago company.
The fact that they are now gone is what makes me wonder how much, if anything, I'll actually collect. Guess we'll find out for sure October after next...Terry270, csmith1281, Lepton1 and 1 other person Thank this. -
Lepton1 Thanks this.
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DY, are you missing trucking yet and wanting to go back? Things are looking very good for the next 2 years
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I miss it sometimes. If I had my truck, trailer, and authority all active and ready I'd probably find myself taking some loads.
But I don't miss it enough to start over. With dozens of automated platforms I still think the 10+ year time horizon doesn't look so hot - at least for the unspecialized.
But guys like Blair will probably still be doing well pulling 100' rocket sections for SpaceX or something...blairandgretchen, Terry270, Lepton1 and 3 others Thank this. -
Blair and that #### stretch. That jerk is gonna shame me into getting a real trailer.
But i got me a good one today. Just over 6k to the truck on 1950 miles. Out of freaking Florida!taodnt, blairandgretchen, Terry270 and 5 others Thank this. -
Ye olde editte
Last edited: Apr 5, 2018
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taodnt, double yellow and Lepton1 Thank this.
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How applicable is this thread is doing just a hot-shot business with an F450 dually and a 24,900# GVWR gooseneck? I could get the dually no problem, but financing the goose... could be an issue
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Dang. I got to page 155 or so when DY pulled the rip cord. As a guy thinking about getting into this industry this thread has been one of the best motivators, and then one of the biggest heart breaks.
I have too many take aways from this thread to even think straight right now. I'm so stoked that I read it. Now to see how I can take what DY posted and test it against my future goals and risk assesment.
You really should write that book for dummies. I'd buy it.Terry270, double yellow, blairandgretchen and 3 others Thank this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 192 of 198