I am sorry that the thread got sidetracked, Rhino. I think that I may have mentioned it before, but I would check the IRS website and look at the tax tables. The address is www.irsforms.org. You will likely have a number of deductions with your wife and children. If you are planning on taking responsibility for your own taxes it would be better to take out more than less. You don't want to be caught short at the end of the year. I would expect that if you keep out 30% that it would be sufficient for your taxes. Put the taxes in a savings account where it won't be a temptation to spend the money. As a contract worker, you may have additional deductions that you could take advantage of which would lower your taxable income. It might be good to get with a tax professional. They are much better qualified than any of us here. A little tax planning can go a long way. Besides, using a CPA or other tax adviser is deductible.

 

where is golfhobo when you need him! LOL

 

And I am sure you Chris, are a law professional who just visits trucking websites for the fun of it..........

Maybe you should do a little more research before you try stating facts you have no idea about.

Here is the page you need to read:
Independent Contractor (Self-Employed) or Employee?

"In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

Common Law Rules
Facts that provide evidence of the degree of control and independence fall into three categories:

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.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination."

 

I find it ironic that you are such an expert on my business when you know nothing about how I operate. I could care less whether you want to believe that I have spoken with the IRS concerning this or not. I have nothing to prove to you or anyone else for that matter. You can either believe it or not. Many carriers legally issue 1099's to contractors as do other types of businesses. I didn't realize that the IRS praised anyone for passing an audit. I don't have a problem with being audited for the way that I may pay a contractor. You may not be able to pay drivers on a 1099, but that doesn't necessarily mean that I can't. It depends on how you have your business structured and how you define your relationship with contractors or drivers and control over them.

 

Well, I'm no expert on IRS matters but this is nothing that I would try to do as an employer. Back when I was a pieceworker hanging drywall I knew some guys that worked for a different company than I did, and this company was paying the guys as contractors and got into some big trouble with the IRS. It cost that company a lot of money.

Before the company got into trouble the guy I was working for wanted to do the same thing, I went to my accountant and he told me to not stand for it, it was not right. I don't remember if he used the word illegal so I won't use it now.

Long story short I went back to the guy I was working for and said I didn't want no part of it, as did a few other guys, the other company got into trouble and we never heard another word about it.

It's something you can do and probably get away with, I'm not one to take chances with the IRS, I don't want their attention.

 

It's just as I stated on the 1st page, it is all in how you word your tax liabilities to the IRS and also the forms you have them sign. I had drivers run in my trucks for a few years as IC's, I paid them a flat weekly pay for a dedicated run and never ran into a problem. I have been audited twice, 2003 and 2008 and passed both w/o a single problem. If you keep propper paperwork and logs and reciepts, then you will have no problems. I also have a lawyer retained permently (my brother-in-law) and he is the one who wrote up my contracts, and always deals with any legal matter I come across.

I now only run 1 truck since this economy has gone down the crapper, but I have a bid in on a dedicated chemical run that I can add 2 more trucks to, but I will prob just find 2 more O/O to do a co-sign on them as the paperwork for IC drivers is a nightmare anyways.

 

Well, I figured out the tax issues, and after considerable prayer I believe I've come to terms that: this may not be the very best job, it may not be ideal for anyone. However I have a need, this feels that need, and if no other companies pop up before December 8th, then Im going to give it a shot. Who knows it might be great. Also I need to remember that with all my experience I only need 6 month OTR to be recent again.

 

A job in this economy and times is a good thing. A man has to do what he has to do to provide for his family.

Biggest thing to remember is ALWAYS PUT MONEY AWAY FOR TAXES !!!!!!!! I cannot repeat this enough. I know too many guys who have gone over to a 1099 and never put any away and a few who didn't file for 5 years. When the IRS man comes a callin, he is like the MOB...... payup or get f**ked up.... no joke.

 

Thank you!
While I appreciate everyone comments and suggestions, I was starting to wonder why I keep coming back if next to no one was actually reading and considering my post and circumstance. I was not then nor am I now looking to get my ego fluffed, nor to have the truth be sugar coated. When people use a post to change lanes into another thread it leads the original poster to believe that his problem/question is irrelevant.

We have figured out that with my family ,and the # of dependents I have that I need to take out 20%. So it's looking up for this job every issue I've had has been taken care of...for the most part.

 

I am glad that you figured things out. You need to do what is right for your family. What may be right for you may not be good for someone else. It isn't uncommon for a thread to get side tracked, but I am glad that you got what you needed from the post. No question is irrelevant. When you or another poster asks a question there are likely others who would like to receive the same or similar information but may be too shy to ask. It isn't personal when someone side tracks a thread. Hopefully, someone will pull it back on topic when it gets side tracked. Let us know what you decide and how things go with the new job. I wish you well with the new venture.