What's With All The 1099 positions

Discussion in 'Ask An Owner Operator' started by Mullet_Head87, Sep 12, 2018.

  1. Mullet_Head87

    Mullet_Head87 Medium Load Member

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    In between jobs and looking around for positions, noticing majority of posted jobs are 1099. I'm in Florida (Tampa Area) and from what I understand is I would be responsible for my social and pay into the half social that a w2 company would, health and then 15.3% in taxes. Also Trumps new 20% pass through deduction can be used as a 1099 contractor which after paying all these it looks like I'd be paying less than a w2 employee. Anybody a 1099 for a company?? Driving their equipment!
     
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  3. Derailed

    Derailed Road Train Member

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    Dont forget the workers comp insurance that would fall on you, usually in the ball park of $8k or $9k a year depending on your earnings.
     
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  4. Ridgeline

    Ridgeline Road Train Member

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    It is cheap owners who want to get away with not doing right for the drivers.

    Unless there is a contract, you are an employee.
     
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  5. Midwest Trucker

    Midwest Trucker Road Train Member

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    Cheat the drivers, cheat the government. Not the type of company I would want to work for. It also hurts companies who are doing everything 100% legit.
     
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  6. ZVar

    ZVar Road Train Member

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    Even with a contract you are likely an employee.
    In a nutshell you have to have skin in the game to be a legal 1099. Own equipment, co-owner of business, etc. Depending on the judge you ask it can be as minor as picking your own freight.

    Problem is, 99% of these 1099 companies are hiring an employee to do an employee's job I,e, just drive the truck. They pay all bills, they do all the "office" type work. They dispatch (usually forced) the truck, etc.
     
  7. Doing_flatbed_nc

    Doing_flatbed_nc Medium Load Member

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    Would it be legit 1099 if I put a driver in my truck, let him pick his loads and paid him an agreed upon percentage of the linehaul?
     
  8. ZVar

    ZVar Road Train Member

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    I would say it depends on the mood f the judge in your area. I've seen ruling both ways. I believe that's what @Ridgeline does and his lawyers say it's fine with the proper contract. I've also seen companies get huge fines for it. I'd say contact a lawyer in your area. See, there is a list from the IRS of several things that make one an IC vs. employee. Picking the job is just one of those.

    Here is a website that explains what the IRS is looking for.. Understanding Employee vs. Contractor Designation | Internal Revenue Service
     
  9. Mullet_Head87

    Mullet_Head87 Medium Load Member

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    Gotta be a loop hole cause I'm seeing a lot of 1099 being advertised. For example I'm seeing 55cpm to 60cpm driving their truck, hauling for their customers,forced dispatch, etc. It doesn't sound like a good deal at all. That's an EMPLOYEE
     
  10. Silent tears

    Silent tears Bobtail Member

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    I was involved in a job as such and what happened in the end because of irs getting involved was, (1 ) I had to be at work at a certain time. (2 )truck and maintenance on truck and fuel was furnished by company. Them 2 reasons irs said I was a employee and not a ic. Sad but the irs make him pay half SSI and he was fined for tax evasion $30.000 . Dot got involved and found 22 truck violations . Not sure what happened after all that went down. I didn't stay around to find out.
     
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  11. TheyCallMeDave

    TheyCallMeDave Heavy Load Member

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    Same here in Texas. Most of the legit jobs in my area within 50 miles either way, are taken with a waiting list and the left overs are just about all 1099. I've attempted to contact several just to see how they operate, and they are all doing it the wrong, I repeat, the WRONG way. One phone call from one of their pissed off "independent contractors" would have the majority I've spoken with, in hot water. Most are foreign folks and you can probably guess what a majority of their drivers are. Not worth the headache and time, and the odds of you finding one that's doing it by the book is a long shot to say the least.
     
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