work comp / unemployment

Discussion in 'Trucker Taxes and Truck Financing' started by markk, Jul 10, 2015.

  1. Pedigreed Bulldog

    Pedigreed Bulldog Road Train Member

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    As an employee, 1/2 of the employment taxes (social security & medicare) are withheld from your pay, and the other 1/2 is paid by the employer. As an I/C, the ENTIRE amount is paid by you.

    As an employee, federal and state income taxes are withheld from your check as well. As an I/C, those are your responsibility to set aside and pay quarterly.

    In other words, that "extra" money that you're thinking you'll see is owed to the government...and then some, because you'll have the "employer" half of the employment taxes to pay.

    If you are driving somebody else's truck, hauling freight for that other person, then you are an employee. If you want to be an I/C, buy your own truck...and even then, if the carrier you are leased to assumes too much control over your operation, you still might be considered an employee. It is EXTREMELY difficult for a company to legally hire drivers as I/C's to drive company trucks under the direction of the company...and even tougher to come out on top as a driver in that situation.
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    Just love this stuff.

    TO the OP, if you enter into an agreement with this guy to do his work as an IC, get a contract and then get a lawyer involved to read it over and tell you what needs to be changed. I have drivers who are under contract for me, I don't tell them what to run, how to run it but have specific requirements for the job. Their taxes are their problem, as cold as it sounds, they all like the arrangement and it gives them freedom to do what they want. We all make money, we all have no real issues with the IRS or the states. They have the same accountant (benefit) and they make more money as an IC because of the write offs they have as business expenses.
     
    G/MAN Thanks this.
  4. markk

    markk Medium Load Member

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    So my check says 1000.00 SS 61.24 Medicare 14.32 . Now instead of that 75.56 I would have to take out another 75.56 . right ?
    Then is the FWT and SWT going to be the same tax rate as if I was an employee or is it less or more as I/C?

    I still would not mind it if it is only a hundred or so extra a week out of 1K . As an employee I make 1K I bring home about 775 . As long as that did not drop below 675 I would still be better off than now as I figured out I am only averaging 110 a day .
     
  5. markk

    markk Medium Load Member

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    Yes the way i understand it I can write off meals and laptop and other stuff that I use on the job .
     
  6. G/MAN

    G/MAN Road Train Member

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    There are some tax advantages to being classified as an independent contractor. If you are required to furnish workers comp, you may check on an occupational accident policy. The cost is usually less than workers comp and it pays about the same, should you need it. You can purchase an occupational accident policy for about $140/month from OOIDA. Workers comp costs can vary from one state to another.
     
  7. Pur48Ted

    Pur48Ted Road Train Member

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    That's an illegal work arraignment as well.
    From the IRS-dot-gov website


    1. The IRS uses three characteristics to determine the relationship between businesses and workers:
    2. Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
    • Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
    • Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
    1. If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
    2. If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
    3. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
    http://www.irs.gov/uac/Employee-vs.-Independent-Contractor-–-Seven-Tips-for-Business-Owners
     
  8. Pur48Ted

    Pur48Ted Road Train Member

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    What would the "tax advantages" be if HE owned the equipment and controlled the WHO, WHAT, WHEN and WHY and the guy just drove his equipment?
    http://www.irs.gov/uac/Employee-vs.-Independent-Contractor-–-Seven-Tips-for-Business-Owners
     
  9. Pur48Ted

    Pur48Ted Road Train Member

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    You can do that even if you are a company driver with the taxes paid from your wages.
    I get $4k to $5k refund every year, because I deduct EVERYTHING, from dog food to DVDs I buy while on the road.
     
  10. Pur48Ted

    Pur48Ted Road Train Member

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    paid vacation at $100 per day??
    man are you getting screwed.......
    Your VacayPay should be close to twice that.
     
  11. Cottonmouth85

    Cottonmouth85 Bad Influence

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    Ive been 1099 and w2 hauling grain and bulk ash/cement in a pneumatic.... but I'm not sure i wanna touch this one. Too many people think we're nuts for running 1099
     
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