Some people prefer trading hours for dollars, some dont.
Are people making a profit after taking out for taxes?
- Thread starter wesaypop
- Start date
Some people prefer trading hours for dollars, some dont.
Perhaps you shouldn't be paid on 1099. Its a different mindset.
It all depends on who is making the decisions on where and how the truck is making money.
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Ok....why? The majority of contract drivers are on a 1099. Maybe you know something the rest of us don't?
I doubt it Dave, more like , he doesnt know something we do. although, my cpa has been wanting Tina and I to be full fledged employee's, just us though, not our drivers. We are going to do it to make our tax burden already paid at years end so all we deal with is the fleet.
It isn't about me but IRS rules which are a fact. Did you know that if you don't own the vehicle and the company pays for the fuel and dictates your activity you are an employee and need to be paid on W-2? The IRS is very clear on this. This topic has been beat to death on The Trucker's Report due to all the shady trucking companies around Chicago 1099ing company drivers to avoid paying into social security, workman's comp, unemployment insurance, etc. Now if you are an O/O with your own truck, van what have you, this obviously doesn't apply. You people act like you are completely oblivious to this.
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Here in lies what you are missing. All those stipulations must be met. As fleet owners, while we own the trucks and some of us pay for the fuel, thats as far as it goes. We do not dictate what choices the driver makes as to what loads they take or the routes or where they fuel, unlike those { shady } carriers you refer to.
That would be the factual answer. There are 20 points they look at to determine a contractor status. A fleet owner paying fuel by itself would not provide a determination.
Liken it to a city cab driver. Many lease the vehicle and the company pays the fuel but few are actual employees. They are 1099's. Things could always change, but at this point they haven't.
If in doubt about your status, I would check with your tax attorney.
Oblivious?
Possibly. But more likely, we've settled the question long ago, and concluded that driving a fleet owner's truck does not make one an employee. The fact that shady companies abuse the distinction is irrelevant, even if some can't see that, and others use it for their own agendas.
When dispatch begins offering loads for me to the fleet owner for approval first, then I'll consider myself an employee.
The company picnic would be pretty cool, I bet.
runrunner
Veteran Expediter
All income is taxable,minus your deductions. Social Security must be paid,regardless of tax burden.
http://www.ssa.gov/pubs/EN-05-10022.pdf
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DRIVERDUDE
Seasoned Expediter
I let Turbo-Tax figure all of that out. I looked at my tax return for 2013. My TAXABLE net profit was negative therefore I pay no SE tax. As hard as the gov't tries you can't tax what ain't there. Even with my wife working my tax rate was -0.48% last year. We have other write-offs such as rental property, too. I was refunded everything she paid in too. I'm not starving either because we are not poor. Just know how to play the game.
Who are you calling "you people"?
The people I quoted for starters.
ebsprintin
Veteran Expediter
DRIVERDUDE
Seasoned Expediter
You do have to pay for it but it is cheap insurance. They will represent you if you are audited. It's a lot cheaper than paying a CPA to do your taxes. Luckily I have never used it but it's there if I need it.
runrunner
Veteran Expediter
One of the 1%,I guess. You will get no Social Security when you retire.
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DRIVERDUDE
Seasoned Expediter
I'll get some Social Security because I had a real job before I got into this racket. And I do have investments that will provide a pretty good income along with the Social Security I will get. I don't like the way the government spends our money so I will just keep it for myself as long as I can.