Paying Co Driver

Discussion in 'Ask An Owner Operator' started by Ghawkman21, Mar 28, 2013.

  1. Ghawkman21

    Ghawkman21 Bobtail Member

    5
    1
    Mar 28, 2013
    0
    Hi. I just purchased a truck and i am getting conflicting stories regarding paying my co driver 1099 or W2.

    Does anyone know what is actually legal?

    My attorney and CPA say I have to pay W2 but I know several fleet owners who all pay 1099 and they are with a large carrier.

    Any advice is greatly appreciated.

    Thank you!
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Marlin46

    Marlin46 Medium Load Member

    504
    299
    Mar 17, 2010
    Atlanta, GA
    0
    Technically and by law you should pay him W2 and pay your share of his taxes ( FICA, Medicare, etc.... ) - it would make you a more respectable employer in the long run as well. As for the fleet owners depending on the situation they should as well - maybe you get caught and maybe you don't. As a business owner I would rather find a way to go out and make a few more thousand by earning it from customers than by not paying someone with W2. In the past I have given drivers the choice as to what they want - needless to say they all said W2.

    For more detailed information go to www.irs.gov and use the search function and it will give you the answers. They may not be the answers that you are hoping for however they are there.
     
  4. donkeyshow72

    donkeyshow72 Light Load Member

    181
    76
    Oct 25, 2011
    Omaha, NE
    0
    If you're looking to go 1099 lease the equipment to your new contract drive, but remember that the person is not your employee and has rights and can't be told how to drive, dress, etc... Good luck
     
  5. Ubu

    Ubu Road Train Member

    1,252
    1,169
    Aug 25, 2012
    Rumored to be somewhere
    0
    Are you really going to take the option of forum posters that you have never met over your own attorney and CPA?

    Sounds like you are shopping for an answer that you have already decided on. Why bother paying the attorney and CPA ?
     
  6. Knucklehead

    Knucklehead Road Train Member

    1,691
    22,239
    Jan 21, 2006
    0
    Are the attorney and cpa knowledgeable in trucking? Granted, there is a fine line when it comes to employee/contractor, but it is possible to make it work with a 1099.

    Here is what the IRS says:

    http://www.irs.gov/Businesses/Small...ndent-Contractor-(Self-Employed)-or-Employee?
     
  7. Ubu

    Ubu Road Train Member

    1,252
    1,169
    Aug 25, 2012
    Rumored to be somewhere
    0
    Why would they need to be, the IRS does not have any rules for independent contractors unique to trucking. The same rules apply to all businesses.

    CPA's specialize in just this type of thing and no attorney I know would give an opinion if they didn't think they new for sure what they are saying.

    I can see asking on a forum just to get some opinions before seeking professional advice but why pay an attorney and CPA and then seek opions from anonymous individuates?
     
    SHC Thanks this.
  8. UnnamedSickness

    UnnamedSickness Light Load Member

    54
    29
    Feb 11, 2013
    0
    If you want to hire someone 1099, they may as well own their own truck, have their own insurance and permits, and you give them a flat percentage. That way they make all the choices on what loads they take where, how the truck is handled, they pay the bill for fuel, repairs, etc. Anything other then that really, you have to pay W2 or it can bite you in the rear.
     
  9. Steve3662

    Steve3662 Light Load Member

    68
    54
    Jan 9, 2013
    Mt Juliet, TN
    0
    If you are booking the freight, telling them their workdays, dictating their time off, or requiring them to do anything as a driver they are an employee and you have to take out taxes. There are a few contractors at one of the companies we are leased to that got popped on this and they got eaten alive by back taxes and even workers comp laws. CYA and take out taxes and get workers comp.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted