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Old 10-28-2014, 03:05 PM
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Default 1099 or W-2 Employee

For those of you owner operators that hired drivers for your trucks, did you hire them as 1099 or W-2 employees?
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Old 10-28-2014, 09:18 PM
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I suspect that some pay via 1099, but eventually, you will be found that the relationship with your driver doesn't qualify as a Independent Contractor. FedEx is being having to pay buttloads of money because they had a lot of supposedly "independent contractors" driving for them, but the courts ruled that they were really employees. I recommend you hire them as W2 employees.
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Old 10-28-2014, 10:47 PM
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Some pay on a 1099 and others pay on a W2. Personally, I would prefer being paid on a 1099 rather than a W2. It depends on how you set up the relationship and how responsible you thing the driver will be. If a driver is irresponsible and fails to pay his taxes and gets caught, he might try to put the responsibility on you for not forcing him to pay his taxes through deductions. You can afford to pay more on a 1099 than on a W2. It certainly has less paperwork when you pay on a 1099. If you decide to pay with a W2, you need to consider you will be paying half of the drivers social security tax. It also takes additional time to do the tax calculations. If it is something about which you are concerned, you can always just pay on a W2.
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