work force commission

[GMAN]

The owner operator will usually be required to sign a contract which has language which states the owner operator is an independent contractor and responsible for his own taxes. I believe one reason so many of these carriers lease trucks to their drivers is to avoid paying benefits and taking out taxes. They save about 7 1/2% in their employer Social Security contributions alone. Man......I need to start leasing my trucks to drivers. Say, anyone know someone who wants to fleece, I mean lease a truck? :wink:

[no_worries]

GMAN, first let me say that I hope you don't feel like I'm picking at you on this subject. You're level-headed and usually back up your claims so I enjoy the back and forth. Having said that, I'm surprised that you were told that by an IRS agent. I've got family and friends involved in various accounting fields including the IRS and we've discussed this point on more than one occasion. You are absolutely right about control being the determining factor, but control over operations is only one aspect that is looked at. I don't see how these situations could ever pass the Financial Control standard. But, as with nearly everything the IRS does, there are no hard and fast rules, only guidelines. So it basically falls to the whims of the agent doing the audit

[merrick4]

But, as with nearly everything the IRS does, there are no hard and fast rules, only guidelines. So it basically falls to the whims of the agent doing the audit

Reminds me of when I use to work for a CPA. He used to send letters on behalf of his clients. If they would come back denied he would take the same exact letter and remail it, sometimes a few times until it hit the right person who said yes. Taught me a lesson though, if I'm trying to get something from a CSR on the phone and they tell me no, I just hang up and call right back.

[GMAN]

GMAN, first let me say that I hope you don't feel like I'm picking at you on this subject. You're level-headed and usually back up your claims so I enjoy the back and forth. Having said that, I'm surprised that you were told that by an IRS agent. I've got family and friends involved in various accounting fields including the IRS and we've discussed this point on more than one occasion. You are absolutely right about control being the determining factor, but control over operations is only one aspect that is looked at. I don't see how these situations could ever pass the Financial Control standard. But, as with nearly everything the IRS does, there are no hard and fast rules, only guidelines. So it basically falls to the whims of the agent doing the audit

No, I don't think you are picking on me, no_worries. You are right about the IRS. You can sometimes talk to 3 different people and get a different answer from each of them.

[colectron]

I am curious as to why the labor people got in touch with you. Did your former driver file for unemployment insurance?

Yes GMAN the former driver filed for unemployment insurance. By the way, I send the audit agent who had contacted me an email about this issue. I very nicely told him that based on the 20 points test from IRS, I don't believe that I should be liable for the unemployment taxes for this driver. It is clear that my driver had more control of when to be off work, came back from work, what loads to pick up. The email was my very first step, he has not responded yet. I am planning to give a call Monday. Thanks you all for sharing your knowledge.

[GMAN]

I figured that might be the case, colectron. I hope it works out in your favor. Good luck. Keep us posted.