New owner questions

[Qwhite2013]

Can anyone tell me roughly how much will be deducted in the way of taxes and other deductions while paying a solo driver at a 40/60 split? If so thank you in advance for any and all input. Leasing on with FedEx CC running the northeast

 

[Rocketman]

Can anyone tell me roughly how much will be deducted in the way of taxes and other deductions while paying a solo driver at a 40/60 split? If so thank you in advance for any and all input. Leasing on with FedEx CC running the northeast

One of the fleet owners may be able to help you, but I think you need to give them a little more info.

What type of truck (van, straight, or t/t.... white glove or surface)?
Will the driver be an employee or an independent contractor?

Edit: Actually, I don't think FDXCC will be deducting anything for taxes....that will be on you to take care of. The other deductions will likely depend on some of the stuff I mentioned above.

 

[Qwhite2013]

One of the fleet owners may be able to help you, but I think you need to give them a little more info.

What type of truck (van, straight, or t/t.... white glove or surface)?
Will the driver be an employee or an independent contractor?

Edit: Actually, I don't think FDXCC will be deducting anything for taxes....that will be on you to take care of. The other deductions will likely depend on some of the stuff I mentioned above.

Thanks for your reply straight truck, surface and the drive is will be a IC ....

 

[Rocketman]

Somebody should be able to tell you. Actually, your recruiter should be able to tell you that too....more direct.

 

[BigCat]

FedEx doesn't pay you, your owner will so if you are an ic you will not have taxes withheld. You will be 1099 and have to put back a safe amount for taxes incase you have to pay in.

 

[paullud]

Can anyone tell me roughly how much will be deducted in the way of taxes and other deductions while paying a solo driver at a 40/60 split? If so thank you in advance for any and all input. Leasing on with FedEx CC running the northeast

You will want to be prepared with your tax money and keep around 10-15% in an account to pay at the end of the year. I ended up with a tax bill of almost $6k between income, Social Security, Medicare, self employment, and state taxes. You will now be responsible for 100% of your Social Security instead of half when you have an employer.

 

[asjssl]

You will want to be prepared with your tax money and keep around 10-15% in an account to pay at the end of the year. I ended up with a tax bill of almost $6k between income, Social Security, Medicare, self employment, and state taxes. You will now be responsible for 100% of your Social Security instead of half when you have an employer.

Who did your taxes?? The most I ever owed was $450 for 1 year...

 

[paullud]

Who did your taxes?? The most I ever owed was $450 for 1 year...

H&R Block but the person that did them is someone that knows trucks and has done them in the past for me. The only deductions I had this year were per diem, entertainment, tools, gloves, and tolls since I drive another person's truck now.

 

[asjssl]

H&R Block but the person that did them is someone that knows trucks and has done them in the past for me. The only deductions I had this year were per diem, entertainment, tools, gloves, and tolls since I drive another person's truck now.

Ahh..ok......

 

[Rocketman]

I think you guys are in left field. The OP owns the truck and will have a driver in it if I understand the first post correctly.

 

[pjjjjj]

Can anyone tell me roughly how much will be deducted in the way of taxes and other deductions while paying a solo driver at a 40/60 split? If so thank you in advance for any and all input. Leasing on with FedEx CC running the northeast

Do you mean, 'how much will FECC deduct in the way of taxes and other deductions', or 'how much should YOU deduct from your driver's percentage in the way of taxes and other deductions'?
Either way, shouldn't you know more about how this all works before taking on the responsibility of a hiring a driver?

 

[paullud]

I think you guys are in left field. The OP owns the truck and will have a driver in it if I understand the first post correctly.

Please see Let's Nitpick Let's Bicker thread for the reply.

 

[runrunner]

I think it is a good deal to take care of Taxes quarterly rather than wait till the end of the year.

 

[str8trk]

Can anyone tell me roughly how much will be deducted in the way of taxes and other deductions while paying a solo driver at a 40/60 split? If so thank you in advance for any and all input. Leasing on with FedEx CC running the northeast

Qwhite If your driver is an employee then you would be financially responsible for state & federal unemployment taxes & medicare. You would also be required to withhold social security, federal and state income taxes from your employees pay and submit to the respective agencies.

If your driver is an independent contractor, you withhold nothing and he/she must pay self-employment tax and medicare directly to the feds along with any state level income or unemployment taxes.

The independent contractor model compels a well structured legal agreement between you and the driver. One of the fleet owners on the forum may be willing to help you, but, professional legal advice is suggested.