New truck

After they leave your employment they can go to the IRS and they will get back their side of SS taxes, and guess where it will come from?

If your driver gets hurt and finds out he doesn't have worker comp, who is he going to sue?

Man up and treat your drivers like employees, can't make a profit that way, then your in a bad deal.

 

When an owner operator leases his equipment to a carrier he is usually issued a fuel card from the carrier to whom he is leased. He may pay for bobtail insurance and/or collision on his equipment, but doesn't pay for cargo or liability insurance. In most instances he may not even find his own loads. According to the naysayers, he should be considered an employee. A true independent has his own authority and runs his own truck as a motor carrier. He pays for liability, cargo and any other insurance he may want or need. An owner operator who leases his equipment may be loaned money from his carrier to purchase fuel, tires or repairs. He will usually need to meet specific pickup and delivery schedules. Those who are independent may also have specific pick up and delivery times, but he may set those himself or they could be set by the broker from whom he gets the load. It can be a fine line between what one would consider an employee or an independent contractor (1099). Whether a company pays one way or another, it is not illegal. I think we will see more carriers and other companies moving toward using independent contractors rather than employees if obamacare is not repealed. It should not be the business of the government as to whether a worker is paid as an independent contractor or employee. The primary thing the IRS is interested in is whether the taxes have been paid. Someone being a 1099 is usually not an issue until the contractor fails to pay his taxes. When he is caught he tries to blame the company for him evading his responsibilities. It isn't the company that is operating illegally. It is the contractor who fails to pay his own taxes who is operating illegally.

 

####, I feel kinda cheated now. Started to work 3 month ago for an eastern european small company with 40 cpm on 1099. On the bright side they give me 3k miles per week, I always leave Monday morning and come back Friday night and when I told them I am not going to PA they said OK.

 

I make .32 per mile on 1099. There. Now you can feel amazing again.

 

I ran on a 1099, and was paid 23% of gross to the truck... did alright for myself. But, it was a crap shoot.. I was going to walk away at first, but after talking to the guy, I decided I'd take the chance... very transparent, I knew up front what each load paid and what my cut of it would be, we did good at keeping deadhead down and not hauling cheap.

 

Just about every LEASE operator IS an employee. LOL that's the thing, it is slave labor by another name. It is ILLEGAL to misclassify any Employee. It doesn't stop people from still doing it though.

If a company pays its driver 50cpm plus benefits, then that company pays a lease operator 1.02 plus 30 cents fuel surcharge, that lease operator is paid way less for the same job after expenses.

Those Eastern European companies are for sure misclassifying you. Please post their names and addresses so we can report them and have you deported?