How to pay my driver (question for small fleet owner of 2-5 trucks)

1099 vs. W-2 has been beat to death, it is illegal to pay an EMPLOYEE on a 1099 in all cases. Is that right, well that depends on where you stand on personal responsibility, but as far as black and white, it is not legal. As for Worker Comp, the laws vary widely from state to state, I just found out a few weeks ago that NY state wants me to list them on my Pennsylvania WC policy as an additional insured, because my drivers and I spend more than 25 "work days" or 40 hours a week for 2 or more consecutive weeks in their state. We are in NY almost daily so they have decided we need a NY compliant WC policy, additionally NY requires contractors to provide WC insurance for their sub contractors if they don't have it, meaning even sole proprietors and one/two member LLC's may be subject to having workers comp insurance in New York State. Crazy, isn't it?

 

Like I said, I wasn't sure. Thanks for not bludgeoning me.

 

I pay 25% whatever revenue the truck generates.

 

25% wow. That makes me appreciate the 32% I made when I did flatbed.

 

25% is pretty standard with most carriers who pay percentage. I paid the same when I hauled cars. I have not known anyone who pays 32%. You also need to look at more than the percentage, such as the rates that the carrier is charging to run his trucks. If you are running for $1/mile and being paid 32% you will not make as much as if you were paid 25% and running for $2/mile. I think the most that I have heard pulling flats is 27%. I would not be surprised if some had to lower the percentage they pay to drivers if they have to pay for the high costs of insurance and other benefits. Keep in mind that if you pay on a w2, you, as the employer, will actually be paying part of the drivers social security taxes. So, even though the driver only thinks he is making 25%, he is actually making more due to the employers portion of the employee's taxes.

 

did u work for tmc? Only company I've heard of paying up to that much. But then again they are taking out truck expense before u see your %. Most ppl who pay percent would pay u say 25% off a 2k load before they take out fuel tolls payment etc

 

....and brokerage fees

 

No, it was a small owner/op with about a dozen trucks. We did local work and I don't believe he used brokers; he dealt with the customers himself.

 

Im guessing the handful of companies that pay percent dont show the drivers the freight bill.

 

Yes I see the charges, I know what the load pays before its loaded