Book Work

[carstea]

When you don't own your own truck but drive for someone else, does the owner typically just give you your percentage of the revenue without any withholdings and the driver (non owner) is responsible for paying FICA, state and federal tax, workers comp, etc. out of that gross revenue? or does the owner generally take care of all that book work for the driver and pay only the net amount?

What is the most common practice for this? What do you think most drivers would prefer...have the withholding done for them or just get the gross and take care of it on their own?

 

[terryandrene]

Since very few drivers in the expedite business are employees, you would most likely be driving for an owner/operator. As a non-employee, the o/o is typically paid a percentage of the tariff received by the trucking company, and out of that percentage, the o/o isresponsible for all overhead including taxes, insurance and workers comp if appropriate. As a driver for an o/o, you would typically have an agreement, either oral or written, which would designate you as an independent contractor. As such you would then be responsible for your own overhead including taxes, FICA, personal insurance. Since no-one is withholding taxes for the o/o or an independent contractor driving for him, you would be responsible for submitting quarterly estimated taxes to the IRS. The good news, or bad, is you'll likely have enough deductions to have a negligible tax burden.

What would most prefer? Get what you can from the o/o and worry about the taxes when due.