Question for Fleet Owners

TrMike · Mar 25, 2013

I have been reading the board for some time now and have finally decided to join, So hello to everyone and thank you for all of the helpful information that you post. My question is for the fleet owners or anyone informed in the matter, when you hire drivers for your trucks do you classify them as employees or sub-contractors? I'm a little confused because the IRS website would classify them as employees but when I drove for a fleet owner I received a 1099. Is there a loop-hole I'm not aware of?

paullud · Mar 25, 2013

If you paid for fuel or leased the truck then it is easy to classify you as an independent contractor.

runrunner · Mar 26, 2013

TrMike said:
I have been reading the board for some time now and have finally decided to join, So hello to everyone and thank you for all of the helpful information that you post. My question is for the fleet owners or anyone informed in the matter, when you hire drivers for your trucks do you classify them as employees or sub-contractors? I'm a little confused because the IRS website would classify them as employees but when I drove for a fleet owner I received a 1099. Is there a loop-hole I'm not aware of?

Independent Contractor (Self-Employed) or Employee?

TrMike · Mar 26, 2013

If the fleet owners wouldn't mind answering with how they rate their drivers (emp vs sub) and why? I'm trying to gather as much wisdom and knowledge as I can and is the reason for asking. Thanks for the help

xiggi · Mar 26, 2013

Not a fleet owner but putting someone in a truck as an employee is very rare in this industry.

zorry · Mar 26, 2013

Rare and costly. That's why it is so rare.
I'd like to try it.
A quality team as employees should be hard to recruit away from that situation.

usafk9 · Mar 26, 2013

xiggi said:
Not a fleet owner but putting someone in a truck as an employee is very rare in this industry.

We did it.

xiggi · Mar 26, 2013

usafk9 said:
We did it.

Did it or do it now?

usafk9 · Mar 26, 2013

xiggi said:
Did it or do it now?

Did. Hired driver as a solo in a class 7 with a small sleeper. He brought his girlfriend with him, and we knew he'd be buying his own truck after the bug bit. We sold the truck, and they drove a fleet owner's truck with a bigger sleeper, until they bought their own a few months later (which he said he'd never do). They do well in their white glove truck.

We paid a better-than-average split, and collected and paid taxes on him. Just proved to be a little much while we also were on the road.