Advice Please

Topic 30242 | Page 1

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LongDay's Comment
member avatar

Hello,

I’ve been following on here for quite a while(sadly after I got my Cdl could have really avoided some headaches if I knew about this place first) and honestly really enjoy the helpful post and everyone who contributes their time to help people like me learn so much.

My question is why are so many small companies messaging me asking me to join talking about their nice new equipment and how great the pay is and everything. Then slip in the oh and it’s 1099 “but that’s a tax break on you. “ What’s with the wanting to 1099 someone over W2? I’ve read the post on here about it and it seems like fraud to me. That’s why I am asking why companies do this? One company said to me that he “has me rent the truck trailer” and that sounds okay for a 1099 but I’m sure I’d need insurance then?

Am I wrong here for not considering a company would wants to 1099 a W2 employee?

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

OWI:

Operating While Intoxicated

Nathan S.'s Comment
member avatar

No one knows what company is best for you to start out with except you!! Most people will tell you that the first company doesn't matter much because it's all about getting your first year under your belt and having that year's experience opens so many doors for you down the road.

Don't focus on the CPM (cents per mile) focus on a company that runs the type of trucking you want to do. (dry van, refer, flatbed, etc) Then one that is hiring out of the state you live in. Read some reviews on here, a great idea if they are a company with lots of bad reviews, or a decent company that people seem to like (mostly) Then do it!

My 2 cents, for what it's worth. I can't imagine working for a small company right out of the gate. There are so many decent mega-carriers and larger companies that have more loads than they can handle right now. Go with the company that will keep you moving. Not a place that can disappear overnight.

Hello,

I’ve been following on here for quite a while(sadly after I got my Cdl could have really avoided some headaches if I knew about this place first) and honestly really enjoy the helpful post and everyone who contributes their time to help people like me learn so much.

My question is why are so many small companies messaging me asking me to join talking about their nice new equipment and how great the pay is and everything. Then slip in the oh and it’s 1099 “but that’s a tax break on you. “ What’s with the wanting to 1099 someone over W2? I’ve read the post on here about it and it seems like fraud to me. That’s why I am asking why companies do this? One company said to me that he “has me rent the truck trailer” and that sounds okay for a 1099 but I’m sure I’d need insurance then?

Am I wrong here for not considering a company would wants to 1099 a W2 employee?

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

SAP:

Substance Abuse Professional

The Substance Abuse Professional (SAP) is a person who evaluates employees who have violated a DOT drug and alcohol program regulation and makes recommendations concerning education, treatment, follow-up testing, and aftercare.

Dry Van:

A trailer or truck that that requires no special attention, such as refrigeration, that hauls regular palletted, boxed, or floor-loaded freight. The most common type of trailer in trucking.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

OWI:

Operating While Intoxicated

ID Mtn Gal's Comment
member avatar

1099s are for owner ops/lease ops. If you go that route, you are responsible for different expenses. A company driver can only be a W2 employee. So, these companies are trying to pull a fast one. Steer clear of them.

Laura

Bobcat_Bob's Comment
member avatar

Run! Do not walk, from any company that wants you to be a 1099 employee, ESPECIALLY if they want you to rent or lease from them.

They are plenty of trucking companies that will put you as a W2 employee. The companies that want to pay you on a 1099 are trying to pass the insurance, taxs and pay roll, and liability onto you, no need for you to accept the burden.

Delco Dave's Comment
member avatar

Having employees as 1099 workers saves the company money, liability and cuts down on paperwork.

For example, it saves them on insurance and they dont have to carry a workers comp policy. If you get hurt, its on you. They also avoid the tax liability and all the paperwork and payments that need to be submitted to the feds and state because you are responsible for paying your taxes.

There are plenty of companies that offer insurance and retirement plans, hold a comp policy and submit your tax payments on your behalf so all you have to do is your job. Play it safe and go with one of them

BMI:

Body mass index (BMI)

BMI is a formula that uses weight and height to estimate body fat. For most people, BMI provides a reasonable estimate of body fat. The BMI's biggest weakness is that it doesn't consider individual factors such as bone or muscle mass. BMI may:

  • Underestimate body fat for older adults or other people with low muscle mass
  • Overestimate body fat for people who are very muscular and physically fit

It's quite common, especially for men, to fall into the "overweight" category if you happen to be stronger than average. If you're pretty strong but in good shape then pay no attention.

Sid V.'s Comment
member avatar

Hi Longday,

Without getting into too many details the difference between a w2 and a 1099 is how you are classified. W2 is an employee, 1099 is an independent contractor. With a w2 the employer is required to provide certain benefits to their employees. With a 1099 the independent contractor must get their own if they want it. Taxes are also wildly different with the two classifications. Yes, it is a VERY big deal if you get into a 1099 contract without knowing how it works.

Working as a 1099 is fine as long as it's done correctly, but it's since devolved into a predatory practice by many companies, trucking or not. California just passed a law called AB5 that makes it illegal to have anybody drive without having their own authority. Now, the rest of the nation is looking to adapt AB5.

You should never be a 1099 without having some kind of ownership of the equipment.

OWI:

Operating While Intoxicated

LongDay's Comment
member avatar

Sorry for the confusion I guess; I’m not looking for my first company or for suggestions. Just asking about why so many companies want a 1099 employee.

LongDay's Comment
member avatar

1099s are for owner ops/lease ops. If you go that route, you are responsible for different expenses. A company driver can only be a W2 employee. So, these companies are trying to pull a fast one. Steer clear of them.

Laura

Exactly what I thought. Thanks for the reply! Just wanted to ask the more experienced drivers to make sure I wasn’t missing anything.

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