It might be time to define 1099 vs W2 driving jobs

There are no benefits in 1099 you're a contractor. You have to pay both the employer paid portion of taxes and your own when classified as a 1099 contractor. This is done quarterly or you can pay a small penalty and do it annually when you file your taxes on April 15. Lots of "employee 1099" drivers don't pay any taxes and get in trouble with the IRS.

If you're not in full control of booking the actual freight on the truck going wherever you want plus also being able to take as much time off as needed whenever you want without notice to anyone then according to the IRS you are missclassified as 1099. The company cannot control any of that on a 1099 driver. In reality most companies misclassifying their drivers as 1099 don't give those drivers that sort of control over their equipment, and rightfully so. The drivers would run the truck into an unprofitable mess within a few days or sooner.

If you like working on the cheap with no benefits and don't mind being missclassified, go for it. The companies doing it are shady, cut rate and typically missclassified 1099 driver is a last resort job for SAP drivers trying to rehab themselves so they can get back into a W2 job. That's the only circumstance where I'd see it as somewhat legit for somebody trying to work themselves back into the industry though still missclassified.

Or another circumstance, which was above table legit, I once did it myself when my own truck went down at the company I was leased to. I was one of the rare 1099 company drivers that actually wasn't missclassified. The owner of the company tossed me a set of keys to one of his trucks, paid me 30% of the gross - they covered fuel/maintenance/tolls, and said have fun, go book your own loads and do your thing like you were doing as o/o. I did it for a year. Took off time as I wanted whenever without asking permission though as a courtesy I did let them know what I was doing. It was a stop gap measure so I could transition out of being o/o and back into a W2 driver job. It's not a long term solution. Especially not running on spot market freight.

 

NO workers' compensation or medical bills paid by the company as a 1099 contractor if hurt on the job.

 

1099, you are paid gross pay. No taxes are withheld or paid toward your social security and medicare. That means YOU are expected to save 25% of each settlement (employees are given paychecks, contractors are given settlements) to apply toward state and federal income tax plus you pay double the social security tax.

1099 employers have a reputation of being fly-by-night, or close the doors overnight and run away without paying drivers. They also have reputation of cheating drivers out of pay or keeping the last driver's paycheck when driver leaves.

Lots of people with bad judgment think they will work for a 1099 company and the IRS will not find them. The IRS WILL FIND YOU. The IRS usually finds you about a week before the 3 year statute of limitations runs out on unpaid taxes. This allows the IRS to run up the interest and fines the taxpayer owes to the IRS. Lots of first time 1099 drivers forget to pay taxes and then on April 15 they discover they owe the IRS many thousands in taxes. I had a run in with the IRS many years ago. I would rather steal money from the mafia or steal raw meat from a tiger than get on the IRS's naughty list. Remember a sassy attitude and defiance will not satisfy an IRS tax debt.

There are some big companies that use 1099 contractors, so it's not fair to say all 1099 companies are tax avoidance frauds. But the people who don't know about 1099 are fresh meat waiting to be chewed up by the crooked 1099 companies.

 

Don’t do it

 

Calculate how much it's going to cost you to replace your health benefits and figure that into your decision making.

 

How do you know if any of us are telling the truth unless you try it.

You don't like the money your making now?

 

No reply