New Job Twist: A Russian Company

I didn't think being a driver could be considered as 1099 employment? I might be mistaken, but according to IRS ruling, I don't see how it works.

"Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)"

Quote from the IRS website

This is a Chicago based Russian/ Ukrainian owned company, with 20 trucks that pays illegally on a 1099? That checks literally all the red flag boxes. You have little experience with 2 terminations on your record for accidents I hope they have you on their insurance it wouldn't be shocking if they didn't.

I'm glad your happy but I'm worried you may have headed down the wrong path.

This is a Chicago based Russian/ Ukrainian owned company, with 20 trucks that pays illegally on a 1099

I am not a book-keeper, and my tax knowledge is not deep. I do know though that the most important thing is to pay your taxes. So I don't see how 1099 can be illegal if the bottom line is paying taxes to the government. With W-2 my employer pays on my behalf subtracting from my check, with 1099 I receive a full check and pay it myself. The only difference I see is 50% vs. 100% of social security tax. In both cases if taxes are filed in an accurate and timely manner, everybody should be doing a right thing.

I am not sure about equipment part of the equation. What if I go to a HD store, buy lumber, rent a hole-digger and then hire a guy to build me a fence? I don't have to hire him with a W-2, it just doesn't make any sense to me. I know for sure that these jobs are always contracted with a 1099 (if not with cash). So what is the difference between contracting me to set up a fence using his tools and contracting me to move certain freight from A to B using his truck? Isn't it the same case when someone has a skill needed to get a job done, and another person hires him?

What do you mean by unfamiliar work ethic?

It is not about being a good or a bad worker, it is just different priorities. Working is probably the biggest part of our lives, and it is not surprising that people from different countries do not work in the same way. It seems to me, for example, that many American workers have more respect to the written words, I mean contracts, than to what a person says.

There are a few legal ways you can file exempt from federal withholding as an employee. If you were entitled to refund and didn't claim it. Or, if you had a zero tax liability the previous year and expect to have a zero liability this year. In my case, that was the case, my write offs from loosing the business will offset, more than, my wages this year. It took a lot of effort to get payroll to understand that.

So, I can understand you wanting to work 1099. But, I hope you have a good tax accountant. I had revenue of 390k. Last year with ample write offs and it was still a challenge to qualify. 1099 contractors are the most frequently audited entities by the IRS.

Anyway, hopefully it works out, get your 6 months in and find a more solid company.

Don't worry my Russian comrade if it doesn't work out there I will personally call the big bosses at OD and get you a job over here. We desperately need more Russian drivers. I feel lonely being the only Russian driver in a massive terminal. I got your back. Thanks for abiding by our stereotypes by driving a Volvi.

Hi andrey

I understand the position you're in, but I would try every single w2 job you can get before taking this job. This is the reason California banned these predatory hiring practices and the rest of the state's are about to follow.

You don't understand fully what's involved. I would get with a cpa before doing anything. Pay them for a consultation if you have to. At the very least I'm pretty sure you'll have a schedule c. I'm not sure if you need an ein#, if you need to structure yourself as a sole prop, or what's you need to do, but it's better to find out now than later.

What you don't understand about taxes is taxable income. I made $120k gross last year but with all the write offs for fuel, maintenance, insurance, depreciation etc.. my taxable income was 30k. If I didn't have anything to write off I'd have to pay taxes on all 120k. It may not seem like a big deal but it will be when you get that bill from the irs.

I do know though that the most important thing is to pay your taxes. So I don't see how 1099 can be illegal if the bottom line is paying taxes to the government.

I would want to be very sure about insurance. If you're an independent contractor, you may be required to carry your own insurance for operating a CMV. Both I and my significant other have worked as 1099s, and we had to carry our own Professional Liability/Errors and Omissions insurance, since we weren't covered by the companies we were contracted with. Different line of work, but the same concept may apply.

Andrey, while I'm not sure of what the implications are for driving as a 1099 contractor, I'm very familiar with the qualifications for being a 1099 construction contractor. There are 7 criteria to be met in order to be considered an independent contractor. The main ones are: 1 Carries own liability insurance policy. 2 Has own tools and equipment common to his trade or trades. 3 Able to determine ones own work schedule. 4 Receives and files all 1099 statements received by companies or individuals that contract work to you. 5 Files a Schedule C form with the IRS on your tax return verifying that you are self employed. 6) Be bat s**t crazy to drive on a 1099 7) I just made up #6 Requirements can and do vary by state, as I understand it.

When working for the Russians remember you can get in but you can never get out. (Got that from the movies)

Do they hire drivers out of the Midwest?

Bruce, I checked with the boss, the company is not hiring now - all trucks have drivers.