I have seen people say no to taking a 1099 job

Discussion in 'Questions From New Drivers' started by marvelousmack, Apr 21, 2021.

  1. marvelousmack

    marvelousmack Light Load Member

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    Are they really as bad as people say? What are the pros and cons? If doing an interview for a 1099 job what are some of the things I should ask?
     
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  3. Toomanybikes

    Toomanybikes Road Train Member

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    If you have to ask what is wrong with a 1099 job, don't apply for the job!

    Some, maybe a few, can work out fair for the driver. Most do not.

    Gain your trucking knowledge with a conventional job before you let someone take advantage of you with a 1099.
     
  4. marvelousmack

    marvelousmack Light Load Member

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    dam, ok. thanks for the advice
     
  5. slow.rider

    slow.rider Road Train Member

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    It's no big deal. You get no benefits, so you have to pay for that stuff yourself. But if the benefits are worth an extra 50% on top of your w-9 pay while the 1099 gig pays 100% more, then you're still doing ok.
     
  6. marvelousmack

    marvelousmack Light Load Member

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    thanks but what is im wondering is what do i have to watch out for so i don't get in trouble? As long as I get a 1099 form and pay my taxes am i clear of any legal issues?
     
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  7. Dockbumper

    Dockbumper Road Train Member

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    The only " trouble" you can get into is tax trouble with the IRS and State. No deductions are taken from your paycheck. You are responsible to pay your own Federal and State income taxes, plus your own Social Security Security and Medicare taxes. Figure about 30% of what you earn to pay those. You will also have no workers comp coverage or unemployment benefits. You will not get any Medical or Dental benefits. No 401k either. The Company that you work for comes out on top....you lose.
     
  8. marvelousmack

    marvelousmack Light Load Member

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    thanks for the info. does sound kinda crummy :(
     
  9. slow.rider

    slow.rider Road Train Member

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    It's just more paperwork. You can get all that stuff on your own, or set up your own corporation and have it do those things. You just have to factor that stuff in when you compare pay since it's not apples to apples. It's up to you if you want $1000 per week before deductions and take home like $700 with benefits, or say $2000 per week with no deductions taken out and you do all the benefits and taxes yourself with the extra money.

    But if the 1099 is paying $750 per week instead of the $2000, then yeah, that's a raw deal.

    Where the scamming comes in is let's say you're getting a $700 weekly check with benefits and taxes already deducted, and some guy comes along and says hey, I can pay you $800 per week take-home on a 1099, making you think it's more money since the checks are bigger, and then you get a surprise come tax time when you realize you've got a huge tax bill due because it wasn't being taken out of your checks like your old job was. But your boss doesn't care if you quit because he just got himself a nearly-free truck driver for the past 8 months and he can do it again with some poor guy from Belarus.

    So there's potential for more money but also more potential for taking advantage of the naive. As long as you know the difference you should be fine. Don't just automatically disregard a job because it's 1099. If the money is right then you can do ok.
     
    Last edited: Apr 22, 2021
  10. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    As an independent contractor (1099), you will pay your portion of your Social Security and the company (also you) matching amount. Be prepared to make quarterly tax payments to the IRS. And like said above if you get hurt, there is no workmans comp. Unless you buy Workmans Comp insurance your self. If you lose your job you won't qualify for unemployment. And many of these companies want you to put up escrow money out of every settlement that many never get back when they leave the company.
    For 1099 to be legal, you have to have a contract specifying everything. You should be free to set your own hours and pick your own loads. If not then you are an employee and being illegally employed
     
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  11. SoulScream84

    SoulScream84 Road Train Member

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    If you set up your own LLC then yoy can still pay into workman's comp as well as unemployment insurance. The major thing is doing your homework, getting a good TRUCKING accountant, and staying on top of everything. It can work, but it requires significantly more work than just being a driver.
     
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