Job offer from O/O.

[Rhino]

I wouldn't call myself a new driver, but compared to some of you guys I might be. I was OTR for a while then local heavy haul flatbed driver for 3 years, till the lay off then company closure. I've been a full time student at a local College for the past 1.5 years. We are now in a situation that calls for me to go back OTR so my wife can finish her last 3 quarters.
Now I have a pretty sweet offer from a local O/O. I would be driving a nice truck, have a three state driving radius, great pay. The load will be a reefer unit filled with Kroger products to be taken to the stores in Ohio, West Virginia, and Michigan. I'd go anywhere from one to three stops and back to Columbus every night empty. Since my pay is based on a percentage after fuel, I wouldn't want to make the 1.5 hour trip home every night. So even though I could be home every night, I probably won't be.
Now the bad: as far as I know, he doesn't offer any kind of insurance. Being a married father of 3, that's a big deal. He also doesn't hold out any taxes, I'd be responsible for that. Those are my concerns. I was told that Averitt would be calling me for a phone interview, but I haven't heard from them yet. I hear only good things about Averitt: home weekends, good pay, full benefits, but I like the thought of having a dedicated route and guaranteed home time.

[GMAN]

More and more companies are not offering insurance to employees. Those who do are passing more of the costs along to the employee. When you stop to think about the taxes, it should be each of our responsibility to pay our own taxes. If you want to go to work for the owner operator and be home each night, just take a percentage of your pay out to pay the taxes and that is all you need to do. At the end of they year you will have your taxes ready to pay. You will pay the taxes either way. Your employer will take them out of your check or you can take them out. The only difference is that the employer will pay half of your social security if they take out for taxes. That amounts to about 7 1/2%. You can find insurance without going through an employer. I have looked at several programs the last few months. Prices can vary quite a bit. You need to ask yourself what you really want to do. Percentage pay offers more opportunity for a bigger paycheck. I don't recall hearing anything negative about Averitt. They are pretty rigid about their driver's appearance.

[Rhino]

I wonder what family insurance would even run per month? I wouldn't want a huge plan: vision, dental, health.

[chris1]

You will have no un-employment,no workmans comp(maybe a cheap occ ins that pays little)any credit you try to get will be as if you're self-employed. 1099's for drivers are used by so called "employers" to avoid payroll taxes. Think of all everything else they will try to avoid paying.

[freebirdrfd]

No 401k, No paid vacation, You will have nothing but a pay check.

[Rhino]

Just got off the phone, they are offering insurance, but it's not cheap.

[Rev.]

This isn't legal.

[Fredog]

yes it is

[freebirdrfd]

This isn't legal.

Yes it is. He would be a contracted employee. It's a shame what companies try to do knowing that there are desperate people out here looking for work.

[Rhino]

Its not the only job offer I have to choose from , just one I wish could work to my advantage.

[GMAN]

Some who pay with a 1099 will compensate drivers at a higher rate than they would make as a regular employee which can more than offset any additional taxes. After all, you are only talking about 7 1/2% for social security taxes that the carrier would pay if the driver was an employee. You can't judge everyone the same when it comes to issuing a 1099, just like a regular employer. If it meets your needs then go for it. If it doesn't, then look elsewhere. Where a 1099 becomes a problem is when the contractor fails to pay their taxes. Some people don't want to accept responsibility for themselves and need someone to take care of them. I have had occupational accident insurance policies myself. Those that I have seen would pay easier and as much or more than workers comp. I would prefer a good occ policy to workers comp any day.

[GMAN]

I wonder what family insurance would even run per month? I wouldn't want a huge plan: vision, dental, health.

When you include dental and vision your rates will really go up dramatically. If you do a search online you can find quite a few companies that sell insurance. There could be some organizations that you could join that might lower your premiums. I believe that OOIDA has health insurance. You may want to check with them along with some others.

[repete]

This isn't legal.

Thank you!! for the people that say it's legal WRONG! To be a contract or sub-contract worker he needs to have the freedom to make his own business decisions as in where and when goes and what he hauls He as as the driver will be an employee of a contractor.

[Luzon]

When one buys insurance as an individual, one of the main things to keep in mind is that the insurance will be individually underwritten. When someone gets a job at a company that already has health insurance as an option and then when they become eligable take advantage of the insurance, then it's basically guaranteed issue, meaning, no health questions are asked.

I would suggest finding an insurance agent that you feel that you can work with, and I don't mean an internet agent. I say this because once you apply individually for health insurance the underwriting starts. If one already has some health issues and goes through underwriting only to be turned down by the first company that they apply with then on every other application when you come to the question: "Have you been turned down or rated up by any other insurance company within the last 5 years?", you have to say YES, and that, as you might imagine, is a big red flag. Don't even think about saying NO there, because they ALL check the MIB (Medical Information Bureau) which is a clearing house of information that every insurance company subscribes to and each time someone is turned down for insurance, it's entered on to your MIB profile. They WILL find out. And then you'll have a 2nd decline.

A good insurance agent will know all this and will interview you asking about health issues. They can then place you with a company that you have a better chance at getting approved with. For example, Golden rule declines any woman over age 40 who hasn't had a pap smear or mamagram within the past 2 years. Cigna doesn't have that requirement.

Hope that helps.

L

[chris1]

Those that I have seen would pay easier and as much or more than workers comp. I would prefer a good occ policy to workers comp any day.

OCC policys have a max limit for medical payout. Workmans comp doesn't. They also have a max payout on lost wages,comp doesn't. They have a waiting period for wage payout,comp doesn't. They have a max weekly wage loss,comp doesn't.
Can you explain the legality of a 1099? I'll say it again that it is used by so called employers to circumvent the law for the purpose of lowering their cost and pushing it onto the so called sub contractor.

[Rhino]

All I know is that on a $900 paycheck at 30% taxes taken out, thats $270! Leaving me a $630 week. Should I make more than that? Im sure I will, but if you take out insurance and running money on top of that, and heck I might as well be a company driver.

[chris1]

All I know is that on a $900 paycheck at 30% taxes taken out, thats $270! Leaving me a $630 week. Should I make more than that? Im sure I will, but if you take out insurance and running money on top of that, and heck I might as well be a company driver.

If you're married with three children the federal witholding,FICA and medicare would be less than 100.00 witheld.

[Rhino]

If your married with three children the federal witholding,FICA and medicare would be less than 100.00 witheld.

That would be great. I thought taking 30% out was way to hight, but everyone I ask says the same thing. Maybe they were thinking of a single person. With my wife in college full time not working, and 3 kids. Thats 5 exemptions right there.

[GMAN]

OCC policys have a max limit for medical payout. Workmans comp doesn't. They also have a max payout on lost wages,comp doesn't. They have a waiting period for wage payout,comp doesn't. They have a max weekly wage loss,comp doesn't.
Can you explain the legality of a 1099? I'll say it again that it is used by so called employers to circumvent the law for the purpose of lowering their cost and pushing it onto the so called sub contractor.

Workers comp will also have a limit. If I remember correctly, workers comp premiums are based on the workers compensation. The payout is a percentage of their salary or wages as it is with an occupational accident policy. Neither will pay the worker 100% of their salary. I have seen occupational accident policies with lifetime limits from $500,000 to $2,000,000. You would be hard pressed to collect that much over a lifetime. Workers comp is rather expensive compared to an occupational accident policy. As I said, I will take the occupational accident policy over workers comp any time.

There are guidelines concerning 1099's, but basically if a worker signs an agreement where they are an independent contractor and are responsible for their own taxes, then it will be up to them to pay their own taxes. There is nothing illegal about taking responsibility for one's own taxes. It becomes illegal when the worker doesn't pay his taxes. That goes back on the worker, not the company. If a worker who agrees to be an independent contractor doesn't pay their taxes then it would be a breach of contract and the company could go back on the worker for breach of contract. They could also have a problem with the IRS. They get a bit testy when they think someone is avoiding paying their taxes. When any company has to factor in the costs of paying a workers taxes then they will adjust wages accordingly. There are only so many dollars to go around. Just because the company pays the workers taxes doesn't mean that the worker is still not paying their taxes. The company pays lower wages in order to have enough money to pay the extra taxes for the worker. Factor in benefits such as insurance and the actual salary will be even lower. Most workers never seem to understand that taxes and benefits are both part of their compensation. If a worker is paid $30,000 and benefits that are $5,000, then the workers actual compensation is really $35,000. There is NOTHING illegal about someone working under a 1099.

[GMAN]

That would be great. I thought taking 30% out was way to hight, but everyone I ask says the same thing. Maybe they were thinking of a single person. With my wife in college full time not working, and 3 kids. Thats 5 exemptions right there.

The number of dependents you have doesn't affect how much you pay with FICA. It does affect how much income tax you pay. And if you are taking care of your own taxes 30% is not necessarily too much. You can go to the IRS forms (www.irsforms.org) website and check the tax tables. It is better to keep out more than less. You will pay about 15% for FICA or self employment tax if you are acting as an independent contractor. That doesn't include income tax. I don't think that most people realize how much they actually pay for taxes.