Gross Pay after fuel costs

Wrong. 1099 pays Workman's Comp, has to negotiate their own health insurance (OOIDA can obviously help you get group rates there) as well as still having to pay their own income taxes, which isn't just federal, but state and local. And then there's SS, work taxes if your locality has them, and prolly other stuff I'm forgetting that contractors pay that company drivers don't. On the plus side, as a 1099 you have more freedom (or should, anyway) to determine when you work and how. That means sub-contracting, taking off when you want, etc, within bounds of what is laid out in the contract of course.

As for paying them 50% and them not having anything invested, that's the price of getting cheap contract labor along with having little control over how and when they do their job. Want to tell someone how and when to work? Sorry, you gotta get an employee for that. Want to skip paying all the associated costs with employees? Then you have to give up the ability to have direct control over them. Can't have it both ways.

 

Seems like you and the truck OWNER, did not discuss in detail your pay plan.
Is it 50/50 of what the truck makes (gross) after fuel. Or is it 50/50 of what the truck net settlement is after fuel.
I also have a second truck. The dealer didnt want to give me what i wanted for trade. When i bought my new truck. So now i am trying to sell it or put a driver in it. There is no way i would pay the driver 50% of gross after fuel. Id pay exactly like you are getting, or id pay 25-30% of gross.
When you get paid. Do you get a settlement sheet, or just a check. (Like under the table) If you are getting a settlement sheet. Then it should have what truck made. Plus all deductions, then your pay. If that is the case there are your deductions for taxes right there. Also when you fuel maybe get a second fuel reciept. Not to cheat your taxes and deduct that. But so you can make sure your deduction is correct.
But either way seems like you will not be happy there. Things usually end the way they started. So what sounded like a GREAT deal for you at first, now is not so great. Take your cdl and 0csa points. And hit the fill out apps and find a new job road.

 

I keep hearing about company drivers getting screwed with this percentage crap. It could be so simple if the driver and owner agree on cpm. That way it's no confusion with the driver thinking the owner is cheating him out of his money. If both party agree on a set pay it's no complication the driver automatically no what he is gonna make depending on his mileage and the owner don't have to share how much he makes and everybody else is happy.

 

Percentage pay would be great if company owners would follow the law. Instead greed takes over so they will generate fake invoices to show as "proof" of what a load paid or they will filter the loads through sister companies so they can skim, or maybe both.

Mileage pay is just as bad. Even practical miles are almost always shorted. I found it amusing I booked a load from Schneider Logistics yesterday and the miles they had listed on the rate con were exactly spot on from the actual addresses. None of that zip to zip or city center to city center stuff. I bet if you checked with their company drivers and o/o on mileage pay they are 6 or 7% shorted. I bet the same thing with their choice program on posted loads.

 

1099 worker isn't required to have workmens comp. or health insurance. and like I said prior if you're creative you can reduce the taxes you owe. A smart person getting a 1099 could make 10,000 less a year and still have more money than a w2 employee making 10,000 or more depending on circumstances.
The only taxes thats different is the half of FICA an employer pays versus self employed person.

 

Consult a tax professional. Employees do not pay for anything associated with their employment outside of things like underwear, socks, etc. If you are an employee your employer cannot charge you for anything, but please check the laws of your state. If you are a contractor, meaning you own part of the business or are providing her with services while not being employed by her, then you would have to construct yourself as a business, sole proprietorship, LLC, Corporation, etc.
You cannot simply call yourself an owner operator and start sharing costs with someone who owns a truck, just as anyone else cannot simply call themselves a mechanic and start charging people for working on their equipment or vehicles. Operating a commercial tractor trailer is a profession that takes licensing, insurance and being registered as a business entity. You must be in the proper business form and file the appropriate paperwork with the associated governmental agencies like the IRS and the state where you operate from, to name a few.

In trucking there is also (everyone's friend) IFTA, 2290 filing (IRS--yes again)... the list goes on the more specialized you haul. Hazmat carriers have different licensing, insurance requirements, routes and times of travel restrictions for instance. There are even requirements WHERE you park your truck (explosives and Hazmat)

As you can tell it's not as easy as "simply" owning a truck and being an owner operator, there's a lot more business that goes on aside from actually driving the truck and making deliveries (what the driver sees more of)

 

If the truck is leased to a carrier, I believe that the carrier will require worker's comp to be paid and/or deduct it from the settlements, despite having problems collecting as an owner-operator.

 

Yes you can. I called my self a mechanic for over 25 years and still do. All it took was a one ton truck an air compressor and tools, I serviced some of the biggest trucking companies including greyhound for many years.
I still work on a few trucks for pocket money.
You just want to put a negative spin on things if they're deducting 50% of the expense from this guys pay, by proxy he's an unlisted partner. If it were me and I decided I wanted to stay with these people I'd be thinking of a way to maximize the effect like in ZERO taxes and some kinds of refunds or rebates.
Unless you're INC.'d the first mistake is consulting a tax professional all the information is online if you have grade school reading and comprehension skills. You may can file electronically free as well.
All the tax professional is going to do, is tell you to spend money with them.
I don't know why people like making things difficult?

 

I guess it's the lesser of two evils, so with that been said if I was a company driver I'll take my chances with mileage pay.