Lesser paying a driver on a 1099?

It ain't illegal until you get caught.
There are many variations on paying 1099's. There are some that are legal, but most are not.

 

Since many who know the laws have posted the links to support their stand, why don't you support yours with a link?


http://www.thetruckersreport.com/tr...financing/233735-back-same-old-1099-vs-w.html

http://www.thetruckersreport.com/tr...ncing/233047-paying-a-driver-on-a-1099-a.html

 

Ok, how about this. I own the truck, turn complete operation over to driver. He furnishes all loads, fuel, tires, repairs, etc. He runs, when, where, and if he wants. I have no say so in the operation of vehicle, other than owning vehicle, and maybe furnishing tag, authority, and insurance.Possibly not, depends on deal we set up. Checks come to me, I deduct my charges, pay him balance after my deducts. He would receive a 1099 for that scenario.Perfectly legal if I have no say so in what he does with truck. He is his own boss.
Now that would not work in too many cases, but it is legal.

 

He is free to take it anywhere he wants to lease?

Can he take whatever time he wants off?

A week or 2 or a month?

Control is the key as well.

 

In my operation over the years, we do not lease to others. Get our own loads.Florida is very lax on intra-state hauling rules. No authority needed. But yes, he could lease to others. But no, he won't because the type work they want to do does not require leasing. Yes he could haul for others, but again , he WANTS to load freight I am familiar with. But his choice.
Like I said, this would not work for everybody, and I only did it with drivers I had known for a long time, and liked my freight.

 

It appears you might be in a position of possibly charging rent for the use of the truck?

 

In THIS particular case, it seems like the owner is just trying not to lose his ### and credit by giving back his Lease Purchased truck. By giving complete control of the truck to the wanted driver, the future driver would essentially be an l/p driver, and a 1099 would be ok. This is a rare exception. The future driver would most definitely have "skin in the game" and l/p drivers are historically non-employees.

 

No possible ownership, so not a very good idea.

 

Too many lawsuits on this out there already on this Company's and o/o's are losing lawsuits due to drivers sueing on this. If a driver don't own the truck he can't take deductions for it on tax time. Etc... Company's were doing this to drivers and reaping the benefits of ownership without paying out any operating cost. Bad idea to get into this. My 2 cents. (I know don't mean much).