1099 Trucking Pros and Cons

Give it two months, the guy will be on here whining about how he got screwed by his company.

 

There are two uses for 1099 in this industry, the first covers 80% of the 1099 drivers, no contract or barely one, the driver is told what to take and the owner doesn’t maintain the truck.

the other 20% are working with a solid contract, they make good coin and control their work.

the former are scum owners who abuse the system, the latter is getting rare now.

 

My opinion is that the driver being a "company driver on a 1099" is new to the game and doesn't really understand how this works. Per diem is really not large of a deduction. He still has a large tax bill after per diem. I think that model of 1099 has a place in the industry. They're for folks that have bad records or checkered pasts and need to rehabilitate their careers and clean their records up. I don't think drivers need to make that a career path. Now the taxes isn't why folks bash it. They bash it because of the practices of the company. Many of these companies get a lot of money out of drivers, albeit under contract. The driver's tax form says he's an independent contractor, but he really isn't. Technically, it ain't legal and the driver is misclassified. What can the driver really deduct when tax time comes?

 

One thing I want to add is at some point soon, the thought process behind California AB5 is going to be National. I want to make something crystal clear. I AM NOT now and NEVER will advocate doing this. California AB5 has already done a lot of damage and people there have been screaming for it to be repealed for a while now. I think a Trucking Group attempted to get it struck down in Court but failed. I know @REO6205 lives there and he might have some more personal knowledge of this. These crooks that are abusing the contractor rules are the problem.

 

The govt will change Roth as soon as they need that money. Social Security used to be untaxed until the taxed it.

1099, unless you bring your truck & pick your freight, is just am employer shirking his tax obligation and taking advantage of some driver's unawareness of his tax obligation until the IRS comes knocking. Make choices like the outcome is important.

 

Next April 15: why didn't my boss tell me I would have to pay the IRS $7 grand?

 

More like $15k

 

And dont get hurt or wreck and hurt someone
If you were to be crippled on job, you will no compensation