Too Good To Be True?

Discussion in 'Ask An Owner Operator' started by TruckNewb, Sep 15, 2019.

  1. Ubu

    Ubu Road Train Member

    1,252
    1,166
    Aug 25, 2012
    Rumored to be somewhere
    0
    It is a little more in expense but not that much.
    Going off his numbers earlier ($.40 per mile and roughly 2400 miles per week) his company's SS/MediCad contribution would be around $74 per week; tax's come out of the drivers pay, not the company's; and unemployment insurance would be 3.689% at most (Pennsylvania, looking at new employer rates) so that would be around $38 per week.

    I am puzzled as to why the OP listed a $800 per week tax expense. As he has been seeing there will be almost no profits after paying the expenses and driver so what tax is this expense for? That's $41,600 per year for taxes? I wish I made enough to owe that kind of tax bill :).
     
    truckdriver31 Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  3. Ubu

    Ubu Road Train Member

    1,252
    1,166
    Aug 25, 2012
    Rumored to be somewhere
    0
    Yes but as an independedt contractor that expense would be on the driver, not the OP's company.
     
    truckdriver31 Thanks this.
  4. Ubu

    Ubu Road Train Member

    1,252
    1,166
    Aug 25, 2012
    Rumored to be somewhere
    0
    And that will never end. There will always be new people trying to enter any industry. They don't know what they don't know.

    I can understand not wanted to help guide someone through the in's and out's, but if that's the case why bother to post in the thread at all? Just move on to another thread.
     
  5. truckdriver31

    truckdriver31 Road Train Member

    5,107
    5,545
    Sep 18, 2013
    0
    true. theres no why im taking $800 a week and then taking out workers comp insurance out of that check, you get what you pay for.
     
    JonJon78 Thanks this.
  6. TruckNewb

    TruckNewb Bobtail Member

    14
    17
    Sep 15, 2019
    0
    yea i messed that up, it would be about 11k for taxes
     
    Last edited: Sep 18, 2019
  7. Ubu

    Ubu Road Train Member

    1,252
    1,166
    Aug 25, 2012
    Rumored to be somewhere
    0
    No, the company doesn't pay taxes on the revenue it brings in.

    It will only pay taxes on any profits it has after all expenses and a one truck operation with a paid driver will have modest profits if any, no where near $41,600 worth of taxes.
     
  8. TruckNewb

    TruckNewb Bobtail Member

    14
    17
    Sep 15, 2019
    0
    yea I completely messed that up...Jesus lol
     
  9. ZVar

    ZVar Road Train Member

    7,082
    12,609
    Sep 10, 2010
    Flint, MI
    0
    Because what happens when the new business owner comes in that doesn't know anything is they will start having problems. They will then turn to the adage of more miles = more money completely ignoring the fact that they are pulling for $1.00 a mile.
    No problem you say, he'll just go out of business faster. Well there is some truth to that, but in the meantime he's keeping rates low for everyone as the brokers know they will find someone desperate enough to take the load. After all losing a little money is better than losing a lot of money or so they think.

    Yes, it's possible that will not happen, but experience has taught me it's the very rare, lucky one that can hang on, keep rates up, and survive.
     
  10. Ubu

    Ubu Road Train Member

    1,252
    1,166
    Aug 25, 2012
    Rumored to be somewhere
    0
    Nothing new here.
    This has be going on in just about any business since long before you and I were born.
     
  11. TTNJ

    TTNJ Medium Load Member

    566
    709
    Nov 21, 2017
    0
    And when new folks come into a business they know nothing about after researching it and understanding it they succeed!
    This really pisses off the folks who think they know everything and are struggling to stay afloat.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  • Draft saved Draft deleted