Question

[JimF51]

The following was posted some time ago on another forum, but not answered.
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I have been offered a co-driver position by a guy who says the drivers get 40% (20% each) of what the load pays and the company pays all the expenses of the truck.

His average...he says...is $500-600 per week gross. As contractors, the drivers are responsible for their own self employment taxes, etc.

This number sounds low to me. Am I missing something?
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I'm curious, as I have a driving offer from a fleet owner. It's basically the same deal. He did give me the gross amount to the truck from mid Sept. '09 (when truck was put in service) till end of Jan. '10. It avg. out to $685. wk per driver.

Jim F

 

[x06col]

Don't believe you are missing anything. As a rookie you could plan on those numbers, and as you gain knowledge and ability, so will you gain numbers.

I know of no one that has hit this company street running without someone REALLY taking you under their wing as a team mate. It's more like a crawl or walk then getting better. If you are planning on top dolla starting out, you WILL be disapointed.

 

[JimF51]

Thanks. Now, I've actually been there, done it, but lost the T shirt.

As for top dollar, if I can avg. a take home of $400. wk, that keeps the wife and I in budget, and gets me back on the road.. Any more than that is a plus.

 

[gregsr40]

So what you are saying is that 400.00 per week is O.K.?

 

[JimF51]

So what you are saying is that 400.00 per week is O.K.?

Yeah, that's the minimum my wife and I need to stay on our current budget. No, it doesn't allow for anything extra, like having a car payment to get her a new car, but we'd get by.

Obviously, I'd like to make more, and by staying out, will do so.

 

[greg334]

Don't forget you will need money for something called taxes.

 

[JimF51]

The $400. weekly avg. is what I would need net, not gross. That would mean aprox. $550. weekly gross.

 

[greg334]

Try again, you have to add in Medicare, FICA and other half of the taxes that you don't see when you work for someone else. Some states can hit you with a small business tax and sometimes there are other things you may not have to deal with until the second year - quarterly payments.

This is a 1099 gig which means that you are 100% responsible for the taxes on the money on that 1099.

I recommend but often get ignored with this suggestion - get an accountant and a lawyer who you can work with. This is a business, not a paid vacation which means that you need to have business advice even in a van.

 

[JimF51]

Gregg, actually, I do already have a tax guy lined up, who does taxes for several local O/O. This isn't my 1st rodeo, I was a O/O in '97.

As to the taxes, perhaps it's been too long since you worked for someone else

My paycheck from a employer has Fed., State, Local, SS, Medicare, and FICA taken out. As a 1099, the difference is there is no employer to pay the other half of SS & medicare, so I have to add in that additional amount. It comes to just more than 25% of my gross, in the tax bracket we are in. As a regular employee, I need $530. gross to take home $400. With the additional taxes, I need $550. to do the same.

On my initial call to the tax guy/accountant, that was one of my questions, along with if there were any other taxes I needed to be aware of.

My original post was only to see if there were any answers/opinions regarding the quoted question, since it was more than a year old.

This is no vacation for me, this is, with luck, my future, final career. I have very slim to no possibility of retirement, at least in this lifetime.

All the above being said, I really do appreciate to advice and info.



Thanks.

Jim