You should probably know what you're going to do before you hire someone on. Just a thought.
A 1099 does not a terrible employer make... I was paid on a 1099, and he was a great employer. But the 1099 is going to make people wary, and it could limit your pool of prospective drivers. Something you may want to consider.
W2 or 1099?
Discussion in 'Ask An Owner Operator' started by Ghawkman21, Apr 2, 2013.
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1099 is a great thing for the contractor that knows how to work it to their advantage. I have done a fair amount of 1099 work myself. You (as the contractor) just have to negotiate that employer share of taxes into your gross invoice and then some. By the time you get that plus the benefit of doing your taxes as a business, you can be way ahead. Unfortunately most people don't have the self discipline to do the right thing with a 1099 and get into tax trouble. Then they want to throw their customer (employer?) under the bus to pay for their bad planning. Our government knows of this irresponsibility. They also know there would be a huge deficit on tax payments if they didn't force withholding, so of course they support it strongly.
That said, it's been posted many times before and I'm too lazy to find the link. The IRS has published guidance on 1099 qualification by occupation. "Truck driver" is listed as only 1099 under a narrow set of circumstances. Anything short of an owner/operator or a driver that runs entirely unsupervised (windsmith where are you bud? LOL) is going to be considered an employee under this guidance. -
As to the Ratification , it is still disputed today. According to history , there is no Record of Oklahoma ratifying it. Seems the records disappeared . Congress declared it ratified , if I remember correctly.
You know as well as I , if he hadn't been pushing it , it wouldn't have happened.
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