final paycheck withheld...........read on
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It sounds like they covered themselves on the 1099 part. As a contractor they can't require you to take any work that you don't want to do, but they can stop using you as a contractor.
I worked for an outfit that wanted me to sign paper work stating I would be responsible for any damage, an attorney said I could sign it at that it didn't mean anything because they where responsible and I can't sign my rights away. Not only that I was signing under duress.
Really you need to go talk to an attorney, a quick go get f letter might get some attention.
I may be wrong BUT, I was told that IF I owned the equipment AND they ran under MY authority they had to be full blown employee's because I would be the ONLY company/person that they could work for.
I could see it IF the guy owned the tractor and pulled my trailer, but when the company owns everything I can't see how he could be listed as an IC.
One of the IRS requirements is that the IC has some or all risk in the business, in this case the driver could just walk away, I don't think it holds water, JMHO
done all the time with the IRS blessing.
The key question from the IRS will be: "does the party have the right to go elsewhere and perform similar work, without jepordizing their position there?"
OK, You have work to do...
Call the state, for unemployment claims fraud first...
Then call state workers comp. claims and ask for someone in investigations.
Then call the IRS, ask for someone in the fraud dept.
Then get an attorney, hopefully her name is Sue(if you know what I mean).
What this slimeball is also very likely doing is having all power units listed under a different company name... then leasing them to the company with the DOT#... Inform your lawyer about this as he will likely try to shelter himself from litigation by doing this... It's also likely he has another LLC set up for payroll as well. Just be aware of this
There are several ways a comapny can do the 1099 thing leaglly.
The workmans comp. for trucking is high being able to contractor someone could mean the difference between someone working or a truck just sitting.
Which would you prefer to do sit and do nohtning or drive as a 1099 driver?
Reading the original post I would imagine there are some details left out.
1099's, company fines, escrow and payig for damages is all legal if someone knows before hand and signs that they know this. It is very common in trucking and not unreasonable if done properly. How would you like someone tearing up your vehicle negligently? This isn't a one size fits all business.
I know many disagree, but it is not something IRS will look over if the right auditor is involved.
Such misclassifications have been a bone to them since 1987. It has been the opening item on EVERY audit in all of the states I have been in.
The problem is it will take the IRS at least two years to begin to react...probably three.
And all these independent contractor status cases are usually just blown over.
If you want justice, go to a ##### house.
If you want to be screwed, go to court.
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