Hiring a driver....

1000k a week for that run is more than fair IMO, only draw back is workers comp in case u get in an accident and get hurt you wont have any income.

Having 1099 is better because you pay less taxes since you can write anything off (work clothes, boots, cell phone etc.)

Only reason owners give you 1099 is because of workers comp being so expensive if you're a small company...

But like i said if you are a night person that's an easy run, no traffic, drop-hook, and an option for insurance if u want it JMO

 

Paying a company employee via 1099 is against the law and as mentioned the IRS can come after you if you get caught. If it paid $900 - $1000 wk on a W-2 it sounds like it would be decent deal however on a 1099 I am not so sure. Why are you so against paying an employee on a W-2? Is it really because of the 6% of payroll in extra taxes?

In most states if you have less than 3 employees you are exempt from carrying Workers Comp insurance however it does not mean than employee cannot sue you if he injured on the job. It just means the state is giving you a pass on this. Just b/c you pay him 1099 doesnt mean he wont come after you if injured either. Then the state looks into it and finds out it is your truck, you dispatched him, and he doesnt have the right to turn down loads and really quickly determines that he is a company driver and not an independent contractor.

When hiring this employee you may want to ask what this financial obligations are ( wife, kids, house payment amount, etc... ) and could he afford to live on what you want to pay. If he takes the job because he has to have a job, then figures the grass is greener ( better pay on a W-2 for example ) somewhere else are you going to be up a creek when said driver decides at 6:00pm one night that he is leaving your company and gives you 0 lead time on figuring out what your gonna do for the load that night.

 

An employer's tax liability is determined by the worker's employment status. When a worker is an employee, employers must pay state and federal unemployment tax, social security tax and workers compensation/disability premiums to a State Insurance Fund. When a worker is an independent contractor, the hiring party is not required to make any of these payments.

Now that is a reason smaller companies give you 1099, as far is it legal? it is as long as the driver gets his own EIN. ( only benefit driver has is that he/she pays less on taxes. There are lots of loopholes in tax laws but once you get caught you're in big trouble )

 

You pay more as a 1099