I amThinking of hiring a driver!! need some help

[hondaking38]

well i am thinking of taking the plunge of hiring a driver for my 2005 sprinter, i will keep it on with panther2 the question i have is on pay?? it will be a 60/40 split starting out..i have talked to many drivers that run this way and they get a 1099 and pay there own taxes..how does that work out??i need some info before i take the plunge, get a driver, and a new sprinter for myself.. probably 50% of the van drivers i talk to out there with panther drive for a fleet owner..

 

[letzrockexpress]

RE: I amThinking of hiring a driver!! need some h

well, without going in to a lot of detail, the first thing you should do is talk to your accountant, assuming you have one, or if not, get one.The driver you would be hiring would be getting or should be getting a 1099 from you...you aren't responsible for paying someone else's taxes....

 

[terryandrene]

RE: I amThinking of hiring a driver!! need some h

Honda:

Let me add to the letzrock good advice. In order to avoid all the tax liability you'll incur as an employer, you would need to not have any employees. Consider a good lease agreement with a potential driver and cover yourself by having the driver be an independant contractor in the same manner as you would be with PII. This, of course, means you can't micromanage your driver and you must give him the same flexibility, or better, that Panther gives to you.

Incorporating wouldn't be a bad idea also, because you might be considered a responsible party if 'your' vehicle and/or contractor is involved in any undesirable activity.

Terry

 

[greg334]

RE: I amThinking of hiring a driver!! need some h

I am going to add a couple things;

First not only get an accountant, but a good contract lawyer. Pay the money (it is only a few hundred) to write a good agreement for you to use. Many times people will use a generic agreement or copy someone else’s – not a good idea. There are number of reasons that you want to write on fresh, one is to fit your needs and protect you.

The second thing is what Terry said. Adding to that - being a company that hires contractors there are rules on how you treat people that must be followed. One example is this no forced dispatched thing; a company can be sued to force the company to hire the contractor as an employee – actually it has happened in IT a lot – when a contractor is forced to do something that they do not want to do or against their judgment, this is the meaning behind the definition of Independent Contractor.

 

[hondaking38]

RE: I amThinking of hiring a driver!! need some h

sounds like it might be more of a hassle, then it is worth...is nothing simple in life??

 

[Lawrence]

RE: I amThinking of hiring a driver!! need some h

> sounds like it might be more of a hassle, then it is
>worth...is nothing simple in life??

You are correct - it's not simple and it's not easy, that is why everyone and their brother aren't fleet owners. But for the ones who do - do it and are a success, well their success is well earned.

I know several fleet owners who started with one truck (or van) and have over 10 - 30 trucks now. Their "fleet business" now brings in anywhere from $500K to $2.5 million a year. But it's NOT for everyone.

Lawrence,
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[letzrockexpress]

RE: I amThinking of hiring a driver!! need some h

If it were easy everyone would be doing it.Fortunately most of what has been described here so far is ground work.Once it is done it is done.It becomes the foundation you would be working from. Then the insanity starts...

 

[NoProblem]

RE: I amThinking of hiring a driver!! need some h

hondaking38,

Give me a call Monday (01/16/06) at 502-326-0500 after 0600 and I will definately help you out.

In case you don't call, allow me to clue you in................ONLY hire a driver that is like you when it comes to making money - if you do this, there will be no issue!

Don't be discouraged on account of all the red tape - there are just too many opportunities!

Best of luck!

Steve

 

[greg334]

RE: I amThinking of hiring a driver!! need some h

Hondaking38

As much as some of this sounds like a hassle, there are rewards. I been on all three sides of this, owner/operator, company owner with employees and part owner of a consulting firm that used a lot of contractors, not one has ever been easy.

If I would pick one of the three I would pick the last one simply because of the satisfaction I got from the experience. The least enjoyable was having employees, what a pain (“my kid is sick can’t go because I may need to help the with the toiletâ€, “opps that was what fell off the truck I guess forgot to close the cargo door†and my favorite “I ran over one of those parking things and I think the truck has a leak†as they pointing to the enormous puddle of oil).

As much as I sound negative, I would encourage you to pursue it.

 

[creekindian33]

RE: I amThinking of hiring a driver!! need some h

well i dont care for panther but thats not ur question i found for me to keep drivers i hire teams is to give them the 40 percent split single 20 percent mayebe 35 percent if theyt stay out at least 6 weeks if u pay all cost an givr them the lower split they will come out better ul keep ur drivers as fare as the tax form they sub contract off of u thet r responsable for there owen taxes but u r responsable for there workmens comp panther should have some guide lines for u to go by make dang sure u draw up contract on everything dont care if hese ur best friend alwaes get paper work