My husband and I own 2 vans and a straight truck in the expediting business and we have an LLC. We have a total of 4 drivers, and we are paying them with a 1099. We pay 60% to the driver and they pay the fuel and tolls. Is this ok to pay them with a 1099 if not should we be paying them with a W-2, and how would we go about keeping track of all the drivers that come and go.
1099 vs. W-2
- Thread starter rollybil
- Start date
Tennesseahawk
Veteran Expediter
Keep a seperate file for each driver. Copies of everything owed goes into their folders.
I wouldn't go the W-2 route unless you're planning on them being employees. A 1099 is easy to figure out, and the correct form for independant contractors anyways.
I wouldn't go the W-2 route unless you're planning on them being employees. A 1099 is easy to figure out, and the correct form for independant contractors anyways.
rollybil
Member since Mar-4-06
6 posts
Rate this user "1099 vs. W-2"
Apr-24-06, 10:06 PM (EDT)
My husband and I own 2 vans and a straight truck in the expediting business and we have an LLC. We have a total of 4 drivers, and we are paying them with a 1099. We pay 60% to the driver and they pay the fuel and tolls. Is this ok to pay them with a 1099 if not should we be paying them with a W-2, and how would we go about keeping track of all the drivers that come and go.
Hi Rollybil
It seems that everyone else is answering for me, but the answers are correct and I really dont mind, but KEEP THEM ON A 1099MISC. YOU DO NOT WANT TO GO THE OTHER WAY, DUE TO THE FACT THAT THERE WILL BE PROBLEMS. IF YOU CONSIDER THEM AN EMPLOYEE AND NOT A CONTRACTOR YOU WILL HAVE TO PAY A NUMBER OF DIFFERENT ITEMS.
#1 WILL BE PAYROLL TAXES, FEDERAL, SOCIAL SECURITY, AND MEDICARE.
WHICH WILL BE YOUR RESPONSIBILITY. UNEMPLOYMENT TAX, BOTH STATE AND FEDERAL. AND ALL OF THE WORKMEN COMPENSATION FOR THEM. IF THEY ARE INDEPENDENT CONTRACTORS ON A 1099 YOU OD NOT HAVE THIS RESPONSIBILITY TO PAY ALL THIS. IT IS THE RESPONSIBILTY OF THE DRIVER TO REPORT THERE INCOME THAT IS PAID ON THE 1099 AND EXPENSE THERE COSTS ON THERE OWN TAX RETURN UNDER SCH C. YOUR ONLY POART IS SUPPLY THEM WITH THE 1099 FORM BY THE END OF JANUARY EACH YEAR. THIS WAY YOU CAN WRITE OFF THE CONTRACTORS INCOME AS CONTRACT LABOR ON YOUR CORPORATE FORM.
fRANK
Member since Mar-4-06
6 posts
Rate this user "1099 vs. W-2"
Apr-24-06, 10:06 PM (EDT)
My husband and I own 2 vans and a straight truck in the expediting business and we have an LLC. We have a total of 4 drivers, and we are paying them with a 1099. We pay 60% to the driver and they pay the fuel and tolls. Is this ok to pay them with a 1099 if not should we be paying them with a W-2, and how would we go about keeping track of all the drivers that come and go.
Hi Rollybil
It seems that everyone else is answering for me, but the answers are correct and I really dont mind, but KEEP THEM ON A 1099MISC. YOU DO NOT WANT TO GO THE OTHER WAY, DUE TO THE FACT THAT THERE WILL BE PROBLEMS. IF YOU CONSIDER THEM AN EMPLOYEE AND NOT A CONTRACTOR YOU WILL HAVE TO PAY A NUMBER OF DIFFERENT ITEMS.
#1 WILL BE PAYROLL TAXES, FEDERAL, SOCIAL SECURITY, AND MEDICARE.
WHICH WILL BE YOUR RESPONSIBILITY. UNEMPLOYMENT TAX, BOTH STATE AND FEDERAL. AND ALL OF THE WORKMEN COMPENSATION FOR THEM. IF THEY ARE INDEPENDENT CONTRACTORS ON A 1099 YOU OD NOT HAVE THIS RESPONSIBILITY TO PAY ALL THIS. IT IS THE RESPONSIBILTY OF THE DRIVER TO REPORT THERE INCOME THAT IS PAID ON THE 1099 AND EXPENSE THERE COSTS ON THERE OWN TAX RETURN UNDER SCH C. YOUR ONLY POART IS SUPPLY THEM WITH THE 1099 FORM BY THE END OF JANUARY EACH YEAR. THIS WAY YOU CAN WRITE OFF THE CONTRACTORS INCOME AS CONTRACT LABOR ON YOUR CORPORATE FORM.
fRANK