What should I pay a driver?

Originally Posted by Markvfl
No benefits and 1099 to start. If things go well and this grows to three trucks I'll go to withholding taxes, paying SS and regular employment.

Such a plan as that is illegal. Not necessarrily true but you must be very careful with how you title your employees and keep very good records.

They also did not carry any workmen's comp on the drivers either. This is a must.

Not sure how it is with RGN but in my company running vans or reefer the O/O that have another driver in their truck do between a 40%-50% split after fuel expenses.

 

Showing where it is not illegal. I posted links supporting my claim.

Where are yours?

 

I guess you answered your own question. No decent driver with half a brain will work for you. You will have better luck finding drivers that other companies will not touch. Good luck.

 

Just a thought here.

Wouldn't one have to consider this in negotiating a wage. My understanding of the 1099 "Independent Contractor" is that the person will be considered self employed and therefore have a larger tax burden. Morals and laws aside, if I was willing to work under these terms, wouldn't I negotiate higher compensation in order to cover the higher taxes? The 1099 discussion is therefore relevant.

I've no horse in this race because I don't have the expertise you would require, but you better hope you never have a disgruntled former "employee"- I've been told that whistleblowers get a 10% commission on what the IRS deems you cheated them out of. That's a nice "severance package" if you ask me.

Good luck, you'll probably need it.

 

It can amount to more than 10%.

When the IRS is notified and confirms it, then they assess withholding on it.

 

Thanks, I'm by no means an expert, but that's what I heard. More is good if you're a whistle blower! The OP better take real good care of anyone working for him if he goes for the 1099 categorization.

 

This is not the only industry that does stuff like that.

Like he said, there are a great deal of them doing it, but it does not make it right.

Chances are they will get away with it as well.

 

Yeah, that's how I know a bit about it, I've got a few friends that are carpenters and they've run into it several times.