I am looking at a job running for an owner operator that has several trucks leased onto a company. He is a contractor for said company so i suppose i would be a sub contractor for him...I'm not to crazy about having to keep up with my own taxes like that and not even sure how that whole deal works. Seems like a good job but i dont like that part....how does the whole 1099 deal work when you are contracted out under an owner?

[BanditsCousin]

You can hide more expenses and pay less tax :lol:

[Rev.Vassago]

Originally Posted by Jagerbomber

I am looking at a job running for an owner operator that has several trucks leased onto a company. He is a contractor for said company so i suppose i would be a sub contractor for him...I'm not to crazy about having to keep up with my own taxes like that and not even sure how that whole deal works. Seems like a good job but i dont like that part....how does the whole 1099 deal work when you are contracted out under an owner?

Not only are you not a contractor, but your tax burden will be a lot higher from being paid with a 1099. The only person it would benefit would be your employer - the owner operator who is getting out of paying all the employment taxes.

[BanditsCousin]

True. Your self employment tax will be double what you'd be paying if you were an employee.

Thats the thing i am kinda confused with.. He has the trucks leased onto the company. I will be driving his truck but i have to fill out the companies application and go through their orientation. In a sense its like I would work for that company but drive his trucks. The higher tax burden was something i thought i had heard before. I am just not sure how that whole deal works. Not sure if i am crazy about the idea....I was kinda confused on how i could be a contractor when all I am doing is driving his stuff. Seems like an all around good job except for that fact. He pays good percentage and its home every day...but that 1099 thing, i just dont think i like it.

[BanditsCousin]

You'd have to get an earnings prospectie to see if its worth in at tax time. If you make much more than a company driver, the higher tax rate could equal out at some point and start working o your advantage.

What does this said carrier pay, and what is he paying?

well he pays 50% of revenue to the truck after fuel. He showed me a pretty good stack of pay statements and all showing what the truck was grossing before and after fuel. It looked like for the most part I would take anywhere from 800 to 1000 a week .....before our lovely government gets its cut. That number sounded pretty good to me until he mentioned the 1099 deal. I talked to him on the phone for a bit then went out to his place to grab the application and thats when he popped that 1099 on me. Not sure if i want that trouble.

[BanditsCousin]

At 50K a year, expect to pay 25-30% in income taxes. I'm sure someone else here can give you a better approximation. But on my generic model, you'd be clearing 35 a year. Havig a house, dependents, kids, etc can change that for the better.

[Rev.Vassago]

Originally Posted by BanditsCousin

At 50K a year, expect to pay 25-30% in income taxes.

That's about right, assuming no deductions. Since he'd be an employee, the only real deduction he would have related to the trucking business would be the standard meal deduction. My taxes were about 26% of my 1099 income before deductions. After deductions, they were about 2%. But I'm just that good.

[BanditsCousin]

I think we could start the first CAD pissing match on who made less last year :lol: :lol: