Question About 1099

Hello everyone so I received a call from a company that has flatbed positions open and I would be driving one of their trucks that they will have Leased to csrt/Malone. I would attend CRST orientation which is 4 days and then I would be driving for the company that called me but hauling loads for Malone . Sea pay is $0.50 per mile $25 tarp and anywhere from 2500 to 3300 miles per week.

Now still being new to the trucking industry he explains that I would be operating as a owner operator without actually being a owner operator they will cover the cost of fuel all maintenance and tolls I would just be driving the truck and then doing my own taxes.

Any thoughts on this it sounds like a good deal but I'm not sure so I come to you for advice

You will be responsible for all of your Social Security and Medicare taxes. That is almost 16% right off the top. Also Federal and State income taxes. Minimum of 20%. That is 36% of your 50cpm. Don't forget your Health insurance. Also you will need to file Quarterly estimated tax returns. That is about 30cpm. Doesn't sound like a good deal for you. A great deal for them

Oh, I almost forgot. You'll have to be a real good record keeper in order to itemize on your taxes. Also a good accountant to keep up on the quarterlies, or hire an accountant for several hundred dollars a year. You also still need to be on duty/ driving up to 14 hours per day on top of all of that.

Hello everyone so I received a call from a company that has flatbed positions open and I would be driving one of their trucks that they will have Leased to csrt/Malone. I would attend CRST orientation which is 4 days and then I would be driving for the company that called me but hauling loads for Malone . Sea pay is $0.50 per mile $25 tarp and anywhere from 2500 to 3300 miles per week.

Now still being new to the trucking industry he explains that I would be operating as a owner operator without actually being a owner operator they will cover the cost of fuel all maintenance and tolls I would just be driving the truck and then doing my own taxes.

Any thoughts on this it sounds like a good deal but I'm not sure so I come to you for advice

What you "heard" may or may not be the whole truth, get the term of this agreement in writing before committing to it. Request a copy of the employment agreement that you will likely be required to sign in advance of your orientation date. Review and understand the terms before you are required to sign it. In addition to what Tractor Man wrote (and I completely agree with him), as a "1099", you are a contractor, a hired gun and when business is slow, you will be the first to sit. The company will have no tangible investment in your success or failure. The benefit of being a 1099 is freedom to procure work (business) from more than one party. Based on the specifics you shared, you will have no freedom and are bound to get your freight from Malone. Effectively they have their cake and get to eat it too.

Yeah steer clear of it lol............Odds are good, you'll probably end up in trouble with the I.R.S.

Yup. Been there done that 1099 thing. Never again. A lot of "Employers" use the 1099 thing illegally anyways. The IRS has real strict rules on the whole thing. If the Feds look into his business, expect them to look into yours.

If someone says "work as a 1099" your best bet is to turn around and walk out.

As noted, you will pay your own taxes (all at once, in April, no withholding over the year) and more. You are responsible for any on the job injuries, and probably for your own health instance/Obama care.

A1099 driver is simply saving the truck owner the hassle and expense of having employees.

What this sounds like, is an owner/operator that's leased onto one of the companies you mentioned.

Aside from the hassles of record-keeping, lack of benefits - they are likely getting paid a percentage of the load - then paying YOU like a company driver - with NONE of the benefits of being a company driver.

As a new driver - this is a BAD IDEA. You are taking ALL THE RISKS, and getting NONE OF THE BENEFITS.

I would run like he11 from this one...

Rick

Thanks for the input guys. I was thinking that there had to be a lot more to it than what was mentioned. Also talked to the cat while driving my shift today so not really concentrating on the conversation to be able to ask all the important questions.

Will push this one to the side and move on to the next.