Have an interview with a 1099 company tomorrow: what should I be aware of?

A whole lot of red flags in that post. I would run far away, but do what you want; it may be a carrier ender.

 

There is a furniture manufacturer close to my hometown in Georgia that does runs up into Minnesota. They pay via 1099. The money is good and they pay for hotels and fuel for the truck. Still don't think I would ever do it. These businesses do this to avoid paying the 7% FICA the unemployment taxes and now the medical insurance requirement arising from Obamacare.

 

Don't forget about work comp, you gotta have like 20+ trucks to be able to afford a w2 employee

 

Well, if the owner gets paid by the broker/customer and then doles out the pay to the drivers, it's an illegal operation. That act in itself makes his drivers employees.

 

What is the percentage? 1099 should really be a minimum of 35% for flatbed, you said you are new ... which could cause your percentage to go down because you cost more to insure. 30% would be the bare minimum I would see as "fair". I would shoot for 32 to 35. If he hauls cheap freight or dead heads a lot, percentage is no bueno.

On 1099 and percentage you should be getting a copy of all load confirmations and invoices ... you get paid from what your boss gets paid. If you never see an invoice, or it looks doctored, you are getting lied to.

 

Dont forget the mandatory jogging suits and the classes on hiw to speak russian.

 

It isn't the 1099, it is the other crap that you should just look another place to drive for. I can't charge tolls, fuel, or anything like that to the driver, that's cheap and low.

 

They don't want to pay employee taxes. You will be responsible for your own taxes. They also get out of paying benefits as well. Health insurance, vacation pay, your 1099 sub contractor if you get hurt on the job your on your own. Just be aware of that put away money during the year otherwise you could owe the IRS. I tried playing around with that a long time ago itemizing everything got audited and ended up getting roasted and owing a lot of money. Learned my lesson

 

As a independent contractor working on a 1099 you assume some of the liability of what ever happens to the FOB / OSD damaged while in transport. This and other cost should be spelled out in black and white. Technically any contractor that doesn't own his truck or leases the truck is really an employee without benefits. Some may even may charge you a defined amount of escrow to cover damages to their equipment and losses. Make sure there is full disclosure by the company should you be at fault for any losses. Read the contract before signing it because you can not go back later and refute any claim against you....whether or not who is at fault ....You take the risk by signing a contract knowing it can and will cost you.