Little help from the owner ops out there.....Landstar?? 1099??

These are very good points that i meant to bring up and forgot. I assumed the owner was covering all these but he needs to be sure.

 

He can use a labor pool to set you up as an employee but it may make a difference on your percentage since it would be an added cost. If you go 1099 the you should set aside 17-20% and pay AMT tax quarterly to cover your butt. Also you can get a workmans comp policy that perhaps you could split the cost of. There is another insurance that works the same way but the name escapes me. Also check the IRS site about 1099 for more "legal info" http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Just my $.02

 

you will wait!! My driver was spotless, and it took FOREVER. seemed we needed all sorts of different things, faxes back and forth, etc. its not a one day deal.

and your pay is probably 29% of his cut of the linehaul. you wont have to buy fuel.
Example:
Line haul: $2000.00
Fuel Surcharge:$400 ( you probably wont get any of this because its for fuel.

His cut of line haul: 73% of $2000= $1460.00
Your cut: 29% of $1460.00= $423.40

Keep in mind, as a W-2 employee, your employer pays half your Social security, and medicare taxes(7.5% of your net income),you pay the other 7.5%.
As a 1099 Contractor, you are responsible for all 15%. So if you normally get $50.00 S.S. and Medicare taken out in a regular paycheck, you have to save $100 per paycheck, and send them, along with estimated income taxes in quarterly.

 

I can't think of anything else right now. It took almost two weeks for Landstar to approve me. I think they are going to make you go to orientation once they do get you approved. Good luck. Let us know how things turn out for you.

 

It depends . Most drivers for fleet owners are independent contractors . They have a written contract with the owners and have complete control over the loads . They are self employed and pay their own workmens comp . Landstar is all O/O and drivers can select their own loads . He would in a way be leasing the truck from the owner .

 

They are border line. If there is a an agreement to lease the truck and then they pay the fuel and repairs it satisfies the restrictions. Anything else is questionable.

I know about the Fed Ex deal, and am surprised the IRS agreed.

 

There are dry leases and wet leases. You can go to Penske and get a lease where they are responsible for fuel and repairs or you can get a lease where you are responsible for them.

 

You can get OCC/ACC cover from OOIDA and it will cover you.
Thats what id be looking at.

Best of Luck

 

But I really doubt that there is a lease in this scenario.

 

me neither, I think the owner doesnt want the hassle of paying a driver properly.