Warning all leased O/O

Morinic statement.......

 

Your ignorance is glaring. That's the epitome of, "moronic".

 

I think I know the answe but I'm not certain. Does landstar own power units?

 

There are already regulations regarding your concerns of 1099 “employees” that aren’t enforced. So how is completely destroying a small business model (keep in mind this will affect everyone, not just truckers) a good thing when all that would need to be done is to simply enforce the IRS regulations when it comes to who is an employee or not?

 

Your correct, they poorly enforce it. So how in their right mind would they enforce this? How and why do we keep regulating a deregulated industry?

Not being a jerk, I really have no idea how.

 

Yes people get taken advantage of in L/P deals, yes people get taken advantage of by people who use 1099 employees. But at some point personal responsibility has to come into play. A lot of people enter into a L/P because they’re lured by the promise of owner operator money but they don’t have the means to buy equipment. They don’t have a down payment and/or poor credit because of past financial choices. If the government “protects” them from entering into a L/P then they will just find another way to part with their money. People are lured into 1099 jobs because they think they’ll make a lot more money because they’re offered a higher rate. Is it the government’s job to protect them from making an ill-informed choice?

As far as enforcement, what would happen if the IRS just did away with form 1099? All they’d have to do is come up with another form for business to business transactions and you’d have to be a company with an EIN in order to use that form.

 

A lot of driver-contractors do have EIN already without owning any equipment. Owning equipment does not matter in the aspect of business entity.
In this rule, the most important thing is that either you are paid by the employer or somebody constant or you generate revenue from your business and your individual pay is a part of your business cost.
If you are leased on, you are no different than a 1099 driver-contractor in the view of the rule makers. I do realize that owning equipment elevates someone to more glorified status and rightfully so but it does not make their business any different from those who don't own equipment and yet essentially do exactly the same things. They way you are dispatched does not matter either. Even in Werner, the dispatcher may call and ask where you'd prefer to go. In many cases, carriers pay also for plates, insurance, tolls, IFTA, provide you their trailer, or parking. The only thing that's different is that they don't provide equipment and maintenance, yet they still may assist and help - but these things are nothing but arrangements and not something that defines whether what you do is a legit business or not.

It should be simple. You defined yourself as a business entity and you act as such then you are business and you get paid on 1099 by your customer(s) whether it is one or many. How you do your business - what assets it has, is irrelevant. The don't have asset requirements when you incorporate and enter transportation field, do they?
This legislation is an absurd and of unknown consequences if it passes, But to be sorry for o/o or L/P and at the same time hope that 1099 drivers or 1099 carriers are f..ed by the act is only a whim.

 

I’m looking at the big picture. I can get my authority and keep doing what I’m doing. Doing away with the independent contractor model as a country will be a large disruption.

 

All about the $$$$ someone has to pay for the grandiose spending spree of the feds. People thinking all this money is free. Wait until the day the debt is due.
You know there is not a way to give the stimulus checks back. I mailed the check back with a letter and I’ll be ###### if about 90 days late it was sent back to me.

 

I am with you 100%. If their aim is to kill the 1099, then they essentially want to redefine what small business is or kill it completely but from our perspective, we cannot pick and choose what small business is because we despise Chicago 1099 carries and Landstar is the best there is.
Landstar lease their trailers, don't they? Only 'not leasing' the tractor units makes them different from 1099 carriers.