Independent driver and 1099 contractor question

I'm not even sure you would be required by the fmcsa to do drug tests.Wouldnt think you would be considered a commercial carrier.But I would think the owner would be responsible since trucking companies are responsible for there leased or independent contractors drug testing

 

If you don't own the equipment and/or they tell you when you can go home/come back to work, it's illegal to be paid via 1099. They're getting out of paying half your SS and Medicare costs.

 

Where can I locate this info?

Is this on a web site?

 

Go to the IRS website and you will find the info you need.

 

The IRS says you are an employee if your employer supplies your tools and equipment....the truck, the fuel, the insurance,etc. also the IRS says you are an employee if the employer controls what time you report for work, how to perform the work, etc. You are an employee and should get a w-2. You are not a 1099 independent contractor. Your employer is not paying for workers comp nor unemployment comp, and he is not paying his share of your social security and Medicare. He is cheating you and is violating the law. The IRS will catch him someday and will want those back taxes paid.

 

Wow you guys need to actually learn how it all works, there is too much misinformation, some of it is made up BS.

Misinformation and confusion is caused by those who never had to deal with this one to one, but other times they assume that the 21 questions that the IRS uses to collect taxes (they do not make labor status determinations) do not always apply, like this -

"IRS says you are an employee if your employer supplies your tools and equipment....the truck, the fuel, the insurance,etc. also the IRS says you are an employee if the employer controls what time you report for work, how to perform the work, etc."

Sorry Pumpkin that's wrong.

In IT like in trucking, there is no assumption of ownership of the tools t make a determination. In IT you get hired to do a job, say you are going into a company to fix a software problem, you are provided with the tools to do so, and you are given a requirement of expectations like arrival and departure time at a specific location plus a deadline to get the job done.

BUT the same is in trucking, you are told what customers to pick up, where they are and what time you are to pick them up, this is not crossing the line at all.

Who owns the truck is really irreverent.

However no matter if you are an employee or contracted help, there is the same restrictions placed on the employer/company with any CDL holder, that is how to driver, how to route (within reason) how to load and secure the load.

This is not coming from someone who guesses about this either, I run a company that has 1099 drivers, which is legal, they are contracted and they pick their own loads. I have been AUDITED by the IRS, investigated by them and they have found no violations based on their findings, this includes interviews with the drivers themselves. AND I also have been in court suing two companies over two separate issues, one is breech of contract and the other is non-payment of accumulated OT based on a non-exempt position.

Now that said, I am fighting the abuse that goes on with 1099, these cheap POS carriers need to have means testing and follow up revues of their financial status when employing people, plus as I would love to see a mechanism for complaints on employment abuse through the FMCSA because many of these crap marginal carriers will hold back pay for stupid reasons and act as if it is just an employee where a contract is needed.

SO if you think I am not on the side of the driver, think again, if I would have to provide proof I can employ people who work under my authority, I would be happy to do so and I think all the good owners would too.

 

Clearly you are running a legitimate 1099 operation. You are the exception. Each situation has a different fact situation, and the IRS evaluates each situation. My experience with independent contractors has included software purchases and it support for that software, as well as employment of proragrammers.

I have had legal advice on situations, and am sure if I had 10 legal opinions I would have 10 differing opinions on the matter.

The IRS says right on their web site that they will make the decision as to whether a person is an independent contractor or an employee.

I have cited a few of the 21 factors the IRS uses, but I admit I have not cited all 21.

I am sure that you agree there are many drivers being paid via 1099 that are not eligible, and are being cheated out of their work comp, unemployment comp, and social security...as always, you need to consult with an attorney for evaluation of your situation.

 

How do handle workers comp, unemployment comp, and social security for your 1099 employees?

 

An IT consultant will bring in their own equipment, such as a lap top, or hard drive formatting software, and also the hardware they are installing. They could be installing a security system, or time clocks, and they would purchase those and include that in their contract price for the software and hardware installation.

Your example of an free lance IT consultant coming in to fix some software is not how it is done most of the time. The installer provides the troubleshooting and repairs under a Service Agreement. It would be an unusual circumstance to use a free lance consultant. So the contractor is providing the equipment needed to install or repair the hardware or the software, so I disagree with your IT example, emphatically.

 

Workers comp is paid for by me, unemployment is a self-supported fund and the SS is paid for by them with compensation to adjust their additional costs.

The IRS and my lawyer and accountant said because I am pretty much leasing the truck to them, this is the way to go. I do not tell them what to run, I don't tell them where to go nor do I tell then when to take time off. I give them a monthly goal and expectations and let them do what they want to do to meet them. It is an unconventional model but it works and they like it, I like it and the customers seem to like it. Of course there are exceptions to all of this, I have dedicated customers who are taken care of through mutual agreements between us and the drivers, I have HH trucks on the road and they are hands off too, and I have some specialized stuff where the drivers are allowed a lot of latitude to make decisions for their customers.

I spent a long time in IT, while many didn't operate as I described, however a lot did. In closed systems like in the hospital systems or regulated systems, there isn't much latitude to hook up contractor provided laptops and do work from them, it rarely happened. In the Pharma industry, especially in discovery we wouldn't even allow a contractor to put a laptop on the network. We had a lot of QA IT people doing contracting work to write up reports and such and they were using company equipment.