Owner Operators having difficulty finding drivers.

1099 is just cheating tax payers.

Employer doesn’t have to match any amount of payroll tax nor pay workers comp. “Contractor” doesn’t have to pay a legit amount of taxes. That pickup they bought gets wrote off as an expense, the tools, maybe work clothes, the new dish washer, cell phone, etc when it’s all bs to cheat the system.

What sucks is if people and companies paid what they are supposed to, taxes wouldn’t have to be so high for the rest of us that are legit.

 

When an owner demands to take loads and they have to put in for time off, they are employees and not contractors. Regardless what others do, not allowing them choices is a reason why there is so much abuse with 1099.

The op is a fleet owner, they should know better to have drivers under 1099, those jobs are for employee work.

 

The IRS is hell bent on cracking down on companies that have employees. (W2). They watch it extremely closely and will audit your butt quickly or penalize you. They also watch for S Corp owners not paying themselves a fair wage and only take dividends.

I wish they would put way way waaaaay more focus on companies and people breaking the law by paying on 1099 and getting paid by 1099 and taking bs deductions. Like TallJoe said, just in trucking and in Chicago it would shut down many companies. This is rampant across so many industries it’s ridiculous.

 

What is cheating tax payers is the system with garbage tax credits.

The 1099 screws the contractor, no one else.

 

True but if that was such a big deal for IRS, the practice would have ended long time ago.I was hired on 1099 for many years and did not feel particularly abused. It was clear that I was making much more than a Swift driver but I had to buy my own occupational insurance and pay my estimated taxes and Soc Sec. It worked for the owner and worked for me.

 

I'd never imagine writing off a pick up truck or a washing machine. LOL. Well, you know the "cheating" can continue to even larger scale when you become an owner operator -receipts and invoices from everywhere are not hard to come up with...some of them pay less taxes than a Swift driver. Where is ethics here? This is still a working class of people who struggle with their daily lives, though. Let's best leave them alone. There is better fish to catch for avoiding taxes, e.g. those setting up their headquarters overseas.

 

Small fish add up.

 

Thank you for the input, great information!!!

 

Yeah but your an honest guy. That’s unfortunately fairly rare. Even many people that consider themselves honest still feel entitled to fibbing a little here and there because when they see their bill would be $10,000+ . They either didn’t hold the money back due to lack of discipline, or feel its unfair to pay that much.

And the big companies you are talking about setting up overseas are doing so legally. So there is nothing to go after, all you can do is make it more attractive to have their money here.

 

It's not fibbing if you use something for work or business it can be wrote off pickup washing machines to clean work clothes boots miles on personal vehicles but most people dont know that you can also hold big purchases for another year on taxe rebates if you have someone that knows the laws legally your company can show you lost money when you made it by purchasing equipment