If you’re in the trucking business, you might encounter drivers...
Read MoreClassifying workers correctly as either employees or independent contractors is crucial for businesses to ensure compliance with labor laws and tax regulations. When it comes to truck drivers who work only a few hours a week, the question arises whether they can be treated as 1099 contractors. In this article, we will delve into the factors that determine employment classification, explore the guidelines provided by regulatory bodies, and shed light on the implications of misclassification.
The first thing you should know is what the difference is between employees and independent contractors. This will help you determine whether or not they should be 1099 or W2.
How are employees and independent contractors different?
Well, it’s more than just taxes. With employees, you have control and the final say. You are also in charge of the equipment, the trucks, loads, routes, and so on.
The IRS defines an employee as “anyone who performs services for you… if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action.”
With an independent contractor, you lose that control. They own their own truck, and you can tell them the load needs to get from A to B, but you can’t tell them which route to take.
The IRS defines an independent contractor as “a worker for whom the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”
1099 or W2?
On our website there is an option to ask us anything through an electronic chat. We recently got asked this question: “I have a truck driver that wants to do a 1099 instead of a W2. He will be using my trucks to haul but he only does it for a few hours a day and some days not at all. Is this legal?”
Well, there is a quick and easy tip to tell if they should be 1099 or W2. If they drive their own truck then they should be 1099. If they drive your truck, then legally they should be W2.
Bottom Line:
While workers who drive only a few hours a week may seem like potential candidates for independent contractor status, their employment classification should not be solely based on hours worked. Factors such as control, independence, and financial aspects play a significant role in determining proper classification. Misclassification can lead to legal and financial repercussions for businesses.
Before coming to Superior Trucking Payroll Service, in 2011, Melisa worked for a trucking company with 50 trucks. She was the one who processed the driver’s miles and expenses.
Because of this experience, she understands the challenges our clients go through each week while preparing their payroll data for us. Customer service is #1 for Melisa. Her goal is to treat our clients like people with true and real needs, not just another number.
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