Paying a driver on a 1099

Discussion in 'Trucker Taxes and Truck Financing' started by Oscar the KW, Nov 26, 2013.

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  1. Oscar the KW

    Oscar the KW Going Tarpless

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    Is it legal? A friend of mine is buying a second truck and is curious if paying his driver on a 1099 can be done legally. He will own the truck and lease it onto a carrier.
     
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  3. Roadmedic

    Roadmedic Road Train Member

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    There are many threads on this.

    First off.

    Your friend is hiring someone to provide a service who is not doing anything with something that is provided to do it.

    In other words, a driver who is nothing more than an employee.

    This is one of the highly looked at items on the audits. The IRS has guidelines on this and provides a list of 20 questions that actually support the fact that the driver is not a contractor but an employee.

    http://art.mt.gov/artists/IRS_20pt_Checklist_ Independent_Contractor.pdf


    http://www.irs.gov/taxtopics/tc762.html

    http://www.irs.gov/uac/Employee-vs.-Independent-Contractor-–-Seven-Tips-for-Business-Owners
     
  4. Blind Driver

    Blind Driver Road Train Member

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    I get paid on a 1099. Seems to be legal according to all the other threads ;)
     
  5. Roadmedic

    Roadmedic Road Train Member

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    About as legal as speeding or false logs.

    Okay until you are caught.
     
  6. TDRV2000

    TDRV2000 Bobtail Member

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    I know in my local area there have been at least 2 companies that went out of business because of 1099 drivers and not taking taxes. I had this exact discussion with someone a few months ago and she said I didn't know what I was talking about. One of the drivers that lost his job lives 3 miles from me. Just ask him after the IRS got done with his boss they ended up losing their trucks. Another company about 10 miles from me same thing. IRS caught up with them same thing they sold their trucks to pay back taxes and fines.
     
  7. kw600

    kw600 Road Train Member

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    I get paid on 1099. My 'boss' is leased to a mega and has 2 drivers on 1099..seems to be okay
     
  8. Roadmedic

    Roadmedic Road Train Member

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    Call the IRS and ask them.

    Be sure to tell them you filed your tax return as a self employed contractor as well.
     
    blairandgretchen and Guntoter Thank this.
  9. indspirit

    indspirit Light Load Member

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    I have been paying 2 drivers on 1099 for 15 years now.
     
    backupandpush Thanks this.
  10. kw600

    kw600 Road Train Member

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    I already filed, got 875$ from uncle sam last year
     
  11. TDRV2000

    TDRV2000 Bobtail Member

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    I hope it works out for you. I won't debate with anybody about it but know what happens when the IRS catches up with them. I do have one question though. If your boss isn't paying taxes what happens if you get hurt on job? Can you make workers comp claim if no taxes paid into for you?
     
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