Thoughts on 1099 jobs vs W2?

Discussion in 'Experienced Truckers' Advice' started by Pianoman, May 3, 2022.

  1. Pianoman

    Pianoman Light Load Member

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    Sorry if this is something that has been posted alot before. I tried searching for similar threads and couldn't find any.

    So I've always worked W2 jobs and avoided all the 1099 trucking companies out there but I'm currently looking for work in the Colorado Springs area and I keep seeing these 1099 jobs pop up. I'm aware that you have to set aside the money for taxes yourself and you have to get your own private insurance off the open market if you want health insurance. I'm also aware technically you're not a "company driver" and you're technically a "contractor" and the legality of them paying 1099 is questionable at best.

    I guess my main question is, is it ever worth it to go 1099 (as a company driver, not lease or owner op)? The ones that pay 1099 in general pay about 10 cpm higher but does that adequately cover the extra costs to the driver? If anyone here works 1099 what percentage of your gross do you actually net after you set aside money for taxes, social security, insurance, etc?

    If anyone could shed some additional light on this I'd appreciate it.
     
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  3. sevenmph

    sevenmph Road Train Member

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    One other aspect to consider. If you are a w2 employee and they cheat you out of money, you call the labor board. If you’re 1099, you file a civil suit in court. IMO it’s half the reason some of these companies offer 1099. They know most are not going to take the time to file a law suit when they cheat you.
     
  4. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    You will be paying double the Social Security tax of a W2 driver, your half and the company's (also you) half. If you get hurt, you will not be covered under workmans comp/occupational accident insurance unless you purchase your own. Also ineligible for Unemployment insurance if the job goes south. I would want more than the 10 cpm.
     
  5. bryan21384

    bryan21384 Road Train Member

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    You don't do 1099 unless you're record is a mess. After you do your taxes, you're take home is the same, maybe less, than a W-2 job. I did it for some years only to clean up my record and got out of it 1st chance I got. 1099 is for people who truly work for themselves. It wasn't all bad when I did it, but there were things that were a pain. Most likely you'll be paying money into an "escrow." They say you'll get it back when you quit....get ready to eat that money. You won't always run the best equipment, and sometimes to get repairs done, it can be an act of congress. Many of them have a love affair with the Northeast. You won't have any benefits. You'll be expected to know how to do some repairs on the truck and trailer, so they can save money. In my opinion, that's the only real benefit of a 1099 company. You'll learn how to handle situations and when you work for a more reputable company, you don't necessarily have to look for dispatch to solve your problems. Some you can solve for yourself. I ain't telling you what to do, I'm only telling you what I wouldn't do or recommend, and sharing my experiences as food for thought. How much experience do you have?
     
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  6. ZVar

    ZVar Road Train Member

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    1099 as an employee is illegal. Do you really want to start working for a company that the very first thing you know about them is they are willing to run illegally?
    Now what makes you think they care about any other illegalities. You know the little things like HOS, equipment maintenance, pushing to speed, paying you, etc.

    No all a 1099 companies are to be avoided at all costs.
     
  7. Geekonthestreet

    Geekonthestreet Medium Load Member

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    First I’d look at the job experience, then schedule, then the stuff like W2/union, then finally debate the finer points of pay. Normally the top paying companies already have all the other goodies in my experience.
     
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  8. tscottme

    tscottme Road Train Member

    If the 1099 job is paying 25-35% more per week than the W-2, with acceptable schedule and work conditions, then MAYBE it is a good option. Usually the 1099 jobs are paying, after taxes, equal or less than then the comparable W-2 job and the company is less honest and reliable. The company paying via 1099 is a way for a cheap company to advertise a higher rate of pay than W-2 without costing them more money. You cannot rely on what is printed in an ad. If you cannot talk to currrent working drivers at the company, don't work for that company. Recruiters lie. Ads lie. If you talk to enough current working drivers at the company and you know exactly what you are walking into, then take the risk. In my mind it's like asking if this liar is honest about everything else.
     
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  9. Pianoman

    Pianoman Light Load Member

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    My record is a mess. It's not terrible but it's messed up. I have over four years experience with no tickets or accidents in a truck (except one little parking lot ding in the first 4 months of driving) but I got myself a bad speeding ticket in my personal vehicle a few years ago that resulted in a license suspension and then got fired from the first company to give me a chance again after two years out of a truck. It's looking like otr may end up being my only option at this point but I'm still trying to see if I can get a local or regional job again. The smaller companies don't seem to mind my record much since my PSP is clean but the bigger companies are almost all not interested as soon as they talk to my previous company
     
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  10. Pianoman

    Pianoman Light Load Member

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    Makes sense. If it's equal after taxes I wonder if it's almost worth it if I can't find something better that's W2
     
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  11. tscottme

    tscottme Road Train Member

    liev
    The best way to know what a 1099 company is like is to talk to drivers currently at the 1099 company you are considering and letting them tell you what the pay and conditions are like. If you rely on an ad, you will be screwed. Don't believe the ads. You are not going to force a 1099 company to live up to details in a free ad they posted. They are not likely to feel guilty and pay more just because they put it in an ad. Shop carefully.
     
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