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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