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So, if you want to make the switch to W2, but some of your drivers are objecting, you should ultimately get new truck drivers.
If you can’t fire all of your employees and get new ones, you could also have them get their own truck and run under your trucking company as an owner-operator. This article explains all of the taxes that owner-operators have to pay.
And remember, that the drivers who quit because you switched from 1099 to W2 aren’t the kind of drivers you want to employ.
There are many reasons why a 1099 driver wouldn’t want to switch to becoming a W2 employee, but these are the most common reasons:
Obligations – if they have a child support payment that they don’t want to pay, or garnishment for wages if they didn’t pay a car loan or didn’t pay a hospital bill
Taxes – if they want to claim 1099 deductions instead of W2 so that they can lower the amount of money they pay in taxes
Remember that drivers don’t get to choose if they are 1099 or W2. This determination is made by the IRS and the State Department of Labor.
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