[cdreid]

CHRIS1 CRST Malone , landstar, EVERY single company that leases o/o's ...

"1099" means you work as a contractor. It's not even rare outside of trucking.

the level of ignorance and just plain frigging stupid amongst truckers scares me sometimes

[chris1]

Yes,they pay true contractors by 1099,not mis-classified employees.

[GMAN]

The IRS would like to force carriers to take taxes from owner operators who lease to them. That could make it much more difficult for many owner operators who need the cash flow. Income taxes are typically paid from NET income. If the IRS is successful then there would be no difference between being an independent owner operator and a company driver. As we have seen with the recent revelations with the IRS, corruption is rampant in this agency. The best thing would be to replace our current tax system with a flat tax or consumption tax and get rid of the IRS and employer withholding. For those seeking fairness, what could be more fair?!

[slacker]

I don't believe a worker without a truck and and lease agreement can legally be paid on 1099 according the the IRS criteria, as I understand it. You have to be totally in control of your time and own your own tools, not to mention being able to contract to other people. I signed one lease agreement that I believe violated that entirely when they require you to work only for them. Having said that, all that said worker has to do is not pay the tax, call the IRS and tell them they are an employee, and then the carrier will have to pay it all. I cannot believe a carrier would put themselves in that predicament, but they do. I have a friend that has worked for three carriers, all owned by what I believe are immigrants, and they all operated this way. They also violated just about every FMCSA rule that I know of, yet they are still in business. Most likely they are operating as a corporation and will just bankrupt it at some point. What they don't realize is that the officers of a corp. are still liable for payroll taxes and the operations of the company. The FMCSA is waking up to these companies that are just opening new trucking companies with the same ownership. Recently, I heard of one guy that was disallowed to own the company by the FMCSA.

[tkstucker]

Gman, I find it amusing that you would blame the employee for not paying taxes trying to avoid there tax liablitity. I believe that is why we have tax laws, which are no different than any other law. A company pays employees on a 1099 to profit from it. That tax liability is passed to the employee(ic). To have the nerve to say that the employee is irresponsible is crazy. How is it not the irresponsible company who had every intention on screwing the government. Yet I suppose in your eyes that's ok. Our government depends on these tax dollars to operate on. When u have business avoid these taxes it puts a burden on every other worker in the country. Then bitch because the taxes go up, then blame the worker. Evryone must pay there far share or we end up in situations like America faces today. We can blame what ever party u want, or obamacare. Either way its American business that has created these situations. Look at the money the government loses on the count of scum employers that want to screw the working man so they prosper. In all reality I cant blame people for wanting to be government dependant. The American employer has created a unvurnably situation for a worker. By one paying them less money than miniumal wage after taxes. I have worked for two companys that pay 1099. Why because I had no option but to work and provide for my family. To be paid 32cpm on a 1099. I would make more money working at burger king. Now I have came to the conclusion, why work. I cant get ahead so whats the point of killing myself for another person to gain double. Its typical behavior in the United states to screw the working man,

[tkstucker]

that's whats needed for the American trucking industry. companies should be held liable for there greed and unethical laws they intentional break. the fact they undermine the set laws of the company that they want to run.

[GMAN]

Originally Posted by tkstucker

Gman, I find it amusing that you would blame the employee for not paying taxes trying to avoid there tax liablitity. I believe that is why we have tax laws, which are no different than any other law. A company pays employees on a 1099 to profit from it. That tax liability is passed to the employee(ic). To have the nerve to say that the employee is irresponsible is crazy. How is it not the irresponsible company who had every intention on screwing the government. Yet I suppose in your eyes that's ok. Our government depends on these tax dollars to operate on. When u have business avoid these taxes it puts a burden on every other worker in the country. Then bitch because the taxes go up, then blame the worker. Evryone must pay there far share or we end up in situations like America faces today. We can blame what ever party u want, or obamacare. Either way its American business that has created these situations. Look at the money the government loses on the count of scum employers that want to screw the working man so they prosper. In all reality I cant blame people for wanting to be government dependant. The American employer has created a unvurnably situation for a worker. By one paying them less money than miniumal wage after taxes. I have worked for two companys that pay 1099. Why because I had no option but to work and provide for my family. To be paid 32cpm on a 1099. I would make more money working at burger king. Now I have came to the conclusion, why work. I cant get ahead so whats the point of killing myself for another person to gain double. Its typical behavior in the United states to screw the working man,

We are all ultimately responsible for paying our own taxes. The difference when you work on a 1099 rather than a W2 is that you write the check to the IRS rather than the company. When income tax was originally instituted, they put the burden of collecting and paying the workers taxes on the company. From a tax standpoint, the only difference between a 1099 and W2 is about half of the social security tax. The worker still pays half of the social security tax on a W2. Under a 1099, he pays the entire amount of the social security tax. If you work on a 1099 or W2, you still pay the same income tax rate. I don't see how anyone could say that the company is avoiding taxes when the worker fails to pay his taxes. There are a lot more taxes than social security and income taxes. Under a W2, the company takes the taxes out of the workers paycheck and then turns around and writes a check to the IRS in behalf of the worker. As I have stated previously, most companies that pay on a 1099 pay a higher rate to offset the additional social security taxes that the worker must pay.

I am amazed at how some people want to blame others for avoiding responsibility for paying their taxes for them. If you don't want to work on a 1099, just find something else to do or a different company. If you can make more at Burger King, then go to work flipping burgers. I doubt that anyone can work at any fast food restaurant and make as much as a first year driver unless you were a manager, and that usually takes several years. When you worked on a 1099, did you pay your taxes? If not, then how is that the fault or responsibility of the company? As a 1099 worker, you are totally responsible for paying your own taxes. If you did not pay your taxes then you were irresponsible. Remember, it is only a portion of the social security tax that the company is responsible for paying when you are a W2 worker. It amounts to about 7.5% of the wages. If you were paid $0.32/mile, that amounts to about 0.02/mile. You are still responsible for paying your half of the social security tax along with the other taxes that usually come out of your check, such as income tax. I really don't see the big deal when it comes to who is responsible for paying your taxes. Everyone should be responsible for sitting down and writing a check to the government for their own taxes, regardless of which way that they are paid. There are drivers who earn a very good income working on a 1099 and they pay their own taxes. Taxes go up because the government needs more money to pay for all those government programs. When the government spends more than they take in then they need to either cut spending or raise taxes. If the 1099 worker pays his taxes then there is NO difference in the amount of money the government receives. I fail to see how you can call a company scum if they pay you as agreed. If you don't pay your taxes then the IRS will come wanting their money.

If you can't make more driving than working at Burger King, then you need to find something else to do. If you want to get ahead, then stop blaming others and start taking responsibility for your own actions. As long as you have decent CSA scores and a good MVR and work history, there is absolutely NO reason whey you can't earn an above average income driving a truck. You seem to want to blame past companies for whatever is going on in your world. If you want to work for Burger King or any other fast food restaurant, they are nearly always hiring. We work to provide for ourselves and our families. It really makes no difference in what we do as long as it is honest work.

[krisgmf]

Originally Posted by GMAN

We are all ultimately responsible for paying our own taxes. The difference when you work on a 1099 rather than a W2 is that you write the check to the IRS rather than the company. When income tax was originally instituted, they put the burden of collecting and paying the workers taxes on the company. From a tax standpoint, the only difference between a 1099 and W2 is about half of the social security tax. The worker still pays half of the social security tax on a W2. Under a 1099, he pays the entire amount of the social security tax. If you work on a 1099 or W2, you still pay the same income tax rate. I don't see how anyone could say that the company is avoiding taxes when the worker fails to pay his taxes. There are a lot more taxes than social security and income taxes. Under a W2, the company takes the taxes out of the workers paycheck and then turns around and writes a check to the IRS in behalf of the worker. As I have stated previously, most companies that pay on a 1099 pay a higher rate to offset the additional social security taxes that the worker must pay.

I am amazed at how some people want to blame others for avoiding responsibility for paying their taxes for them. If you don't want to work on a 1099, just find something else to do or a different company. If you can make more at Burger King, then go to work flipping burgers. I doubt that anyone can work at any fast food restaurant and make as much as a first year driver unless you were a manager, and that usually takes several years. When you worked on a 1099, did you pay your taxes? If not, then how is that the fault or responsibility of the company? As a 1099 worker, you are totally responsible for paying your own taxes. If you did not pay your taxes then you were irresponsible. Remember, it is only a portion of the social security tax that the company is responsible for paying when you are a W2 worker. It amounts to about 7.5% of the wages. If you were paid $0.32/mile, that amounts to about 0.02/mile. You are still responsible for paying your half of the social security tax along with the other taxes that usually come out of your check, such as income tax. I really don't see the big deal when it comes to who is responsible for paying your taxes. Everyone should be responsible for sitting down and writing a check to the government for their own taxes, regardless of which way that they are paid. There are drivers who earn a very good income working on a 1099 and they pay their own taxes. Taxes go up because the government needs more money to pay for all those government programs. When the government spends more than they take in then they need to either cut spending or raise taxes. If the 1099 worker pays his taxes then there is NO difference in the amount of money the government receives. I fail to see how you can call a company scum if they pay you as agreed. If you don't pay your taxes then the IRS will come wanting their money.

If you can't make more driving than working at Burger King, then you need to find something else to do. If you want to get ahead, then stop blaming others and start taking responsibility for your own actions. As long as you have decent CSA scores and a good MVR and work history, there is absolutely NO reason whey you can't earn an above average income driving a truck. You seem to want to blame past companies for whatever is going on in your world. If you want to work for Burger King or any other fast food restaurant, they are nearly always hiring. We work to provide for ourselves and our families. It really makes no difference in what we do as long as it is honest work.

So is it legal for the company driver to get pay on 1099???

[repete]

Originally Posted by krisgmf

So is it legal for the company driver to get pay on 1099???

Yes , lots of them do it. In the case where an employee is just that an employee then no it is not legal. But some still do it.
As the employee you have nothing to worry about except paying ALL of your fed. and state income tax,and FICA no health/dental/vision ins. no unemployment, no workers comp, nothing at all unless YOU PAY FOR IT. still sound like a good deal?

[rss245z]

What about insurance e.g liability/collision?
When you are paid hourly say $18/hr how does that play out being paid daily? I understand I must pay the employer's share but how does that translate lets say 12*18*5*3 =12,960/quarter - expenses say $3000 in
taxable of 9,960 what comes out of that? fica(SS),state withholding,workmans-comp, federal withholding? If have no intention of taking unemployment do you have to pay it? Just trying to get an idea what goes
If controlled it does not seem too heinous. Just so long as the filing happens on time and correctly

If you are saying the truck owner is ducking their responsibility that seems to be the case but a small truck owner has a problem financially and I have no idea who pays the liability insurance. Any idea what I may be left with? Collision remains with the truck but liability??