Independent driver and 1099 contractor question

Discussion in 'Ask An Owner Operator' started by Zeezle, May 6, 2017.

  1. Pumpkin Oval Head

    Pumpkin Oval Head Road Train Member

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    You are clearly doing things the right way.
     
    markk Thanks this.
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  3. Scooter Jones

    Scooter Jones Road Train Member

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    I ran for a guy under his authority for a short while. He required you to run his freight in his trailers on his customers timelines. I guess that's a legitimate 1099 relationship?
     
  4. markk

    markk Medium Load Member

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    If you are 1099 you are an independent contractor meaning you own your own company. Who ever you drive for can not tell you much of anything without being in violation of state and federal law. IRS and states do not like truckers being called IC when they work for a company. It is probably illegal in some states. Ks hates it.
    Anyway they are very limited in what they can tell you to do. They can not tell you when where how to pick up or deliver a load. You have the right to refuse any load. Some states I think allow for a contract that states things they can or cant do but IRS is very clear on what they can tell you.
    they are basically limited to things like where to have the truck repaired if they own it but not if you do.
    Your state will list their rules on state website and IRS has theirs
     
  5. markk

    markk Medium Load Member

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    no. That would be an employee because he is requiring you to pick up and deliver when he says to. He can only give you his mandatory minimums of how many loads he needs you to take each week and stuff like that. He can not tell you when to stop running or take off.
    there is a fine line of unknown in the rules. If you and he agreed to the rules set or you have a contract you agreed to then it can be argued that you are a 1099. How ever arguing with the irs may not go their way.
     
    Last edited: Jun 5, 2017
  6. markk

    markk Medium Load Member

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    also if they are doing this to you and you are not happy with it you can simply wait till when ever and then complain. They will get a big fine and you will get a big paycheck for all the cash they cheated you out of by doing you wrong. Keep quiet till you think the pay off is good. You are not in violation of the law they are.
    On the other hand if you are happy with it then just go with it.
     
  7. markk

    markk Medium Load Member

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    I turned down a 1099 job . I knew nothing about 1099 except that i could not have unemployment. I contacted my state and told them i would be driving company truck on 1099 and wanted to know if I could pay into unemployment . they informed me it was illegal for them to 1099 me and wanted to know who they were. I did not tell them as they guy was not misleading me.
    I turned the job down because I thought they might check records later to find out who I was working for and get him.
     
  8. markk

    markk Medium Load Member

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    Also if you are 1099 then you either have to be good at figuring out all the tax crap and forms that need filed and estimating income.... or pay someone and hope they know about truckers so you get all the deductions you can get or you will be in financial ruin when the fines come in.
    I am looking for a good trucker cpa now. i cant make sense of all the tax crap and dont have the time to try.
     
  9. markk

    markk Medium Load Member

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    Yep but if the irs goes after them because what they are doing is illegal then you get compensated for the money you did not get. By that I mean things like SS and medicare they did not pay and you did. They would have to pay you back.
     
  10. Ridgeline

    Ridgeline Road Train Member

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    Thanks, I written some details but honestly I hate these owners/carriers who use 1099 as a means to make more money, I can't do that. Much of what I do for my drivers makes them happy, happy drivers work harder and handing them the keys and allowing them to work for themselves, I make more money than if I sat here and dispatched every load and micromanage them.

    Not all the time, they are there to make sure their taxes are paid, that is income taxes. My brother-in-law worked for a guy who paid him with a check, he started in January of 1998 and got fired (not his fault) on December 29th of the same year. He ended up with a 1099 in the mail in February and he called the IRS which took the complaint, forced the owner to pay the income taxes but never got him to pay for the SS and other taxes, he had to go back and sue to get the "compensation" and those other taxes paid.
     
  11. Pepper24

    Pepper24 Road Train Member

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    To whom it concerns.Be very,very careful taking legal advice from truck stop lawyers.They are good at giving legal advice but when the stuff hits the fan you can't find them to explain the law too the judge and you end up with no job.
     
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