They Make You Work As A Contractor
Topic 9918 | Page 3
Hi folks,
I saw a job that I think would be perfect for me (ferrying tractors (no trailers) from point A to point B, and returning to point A in a different tractor). No forced dispatch, work only when you want, etc.
The only problem is that they make you work as a contractor, not as an employee. Which means twice the social security tax, no workers' comp insurance, and worst of all, potential liability - (they require that you post a $1,500 cash bond, but I was unable to find out just yet how much worse it could get).
The big question is: this may not be legal: the IRS has laid out steps to employers to determine if an employee could, or could not, be considered a contractor. The fact that the driver will only work for this carrier, plus the fact that the carrier controls what the driver does, argues that the driver is really an employee rather than a contractor. TheIRS could come back on the carrier and demand that they pay employment taxes, etc. (I saw this article on Legal Zoom, which gives additional detail on the subject: https://www.legalzoom.com/articles/employee-vs-independent-contractor-what-employers-need-to-know
The quick and dirty solution is just to find a job with someone else, where the driver is considered an employee. But I was wondering if the contractor status could be challenged somehow, with the State Department of Labor or others.
If any of you have thoughts on this situation, please let me know. Thanks.
It sounds like you are confusing working contract with working 1099. A contractor is an employee of the company that pays you and this company is required to pay/deduct all payroll taxes just like any other employer. Contractors are usually hourly workers, some call them temps. If you are 1099 you can consider yourself working for yourself and you are the company. Normally, 1099's invoice the company for payment and are responsible for all taxes, insurance, etc. You would normally submit an invoice to the company to be paid.
I see this was addressed in earlier comments. Sorry, I should have read the string before commenting.
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.
TWIC:
Transportation Worker Identification Credential
Truck drivers who regularly pick up from or deliver to the shipping ports will often be required to carry a TWIC card.
Your TWIC is a tamper-resistant biometric card which acts as both your identification in secure areas, as well as an indicator of you having passed the necessary security clearance. TWIC cards are valid for five years. The issuance of TWIC cards is overseen by the Transportation Security Administration and the Department of Homeland Security.
Hi folks,
I saw a job that I think would be perfect for me (ferrying tractors (no trailers) from point A to point B, and returning to point A in a different tractor). No forced dispatch, work only when you want, etc.
The only problem is that they make you work as a contractor, not as an employee. Which means twice the social security tax, no workers' comp insurance, and worst of all, potential liability - (they require that you post a $1,500 cash bond, but I was unable to find out just yet how much worse it could get).
The big question is: this may not be legal: the IRS has laid out steps to employers to determine if an employee could, or could not, be considered a contractor. The fact that the driver will only work for this carrier, plus the fact that the carrier controls what the driver does, argues that the driver is really an employee rather than a contractor. The IRS could come back on the carrier and demand that they pay employment taxes, etc. (I saw this article on Legal Zoom, which gives additional detail on the subject: https://www.legalzoom.com/articles/employee-vs-independent-contractor-what-employers-need-to-know
The quick and dirty solution is just to find a job with someone else, where the driver is considered an employee. But I was wondering if the contractor status could be challenged somehow, with the State Department of Labor or others.
If any of you have thoughts on this situation, please let me know. Thanks.
It sounds like you are confusing working contract with working 1099. A contractor is an employee of the company that pays you and this company is required to pay/deduct all payroll taxes just like any other employer. Contractors are usually hourly workers, some call them temps. If you are 1099 you can consider yourself working for yourself and you are the company. Normally, 1099's invoice the company for payment and are responsible for all taxes, insurance, etc. You would normally submit an invoice to the company to be paid.
Thank you, Annee. This company advertised on Craigslist, and said that the employment type is "Contract". They pay 50 cents per mile plus fuel surcharge. They give the driver a fuel card, and place an estimated amount on the fuel card necessary to fuel the tractor for the trip. They don't want the driver arriving at the destination with more than 4 inches of fuel in the tanks. The driver is responsible for submitting receipts to the company.
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.
TWIC:
Transportation Worker Identification Credential
Truck drivers who regularly pick up from or deliver to the shipping ports will often be required to carry a TWIC card.
Your TWIC is a tamper-resistant biometric card which acts as both your identification in secure areas, as well as an indicator of you having passed the necessary security clearance. TWIC cards are valid for five years. The issuance of TWIC cards is overseen by the Transportation Security Administration and the Department of Homeland Security.
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It sounds like you are confusing working contract with working 1099. A contractor is an employee of the company that pays you and this company is required to pay/deduct all payroll taxes just like any other employer. Contractors are usually hourly workers, some call them temps. If you are 1099 you can consider yourself working for yourself and you are the company. Normally, 1099's invoice the company for payment and are responsible for all taxes, insurance, etc. You would normally submit an invoice to the company to be paid.
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:
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.
TWIC:
Transportation Worker Identification Credential
Truck drivers who regularly pick up from or deliver to the shipping ports will often be required to carry a TWIC card.
Your TWIC is a tamper-resistant biometric card which acts as both your identification in secure areas, as well as an indicator of you having passed the necessary security clearance. TWIC cards are valid for five years. The issuance of TWIC cards is overseen by the Transportation Security Administration and the Department of Homeland Security.