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There seems to be more & more outfits paying their CDL drivers by 1099 in the Bakken. I'm not quite sure how an employee driving a company truck can be classified as a 1099 independent contractor (or IC). Recent IRS rulings consider an IC to be an owner/operator of their own equipment and a W-2 driver to be an employee if they drive a company truck on a set schedule. An IC usually gets to set their own hours and work as much as they want. A W-2 driver (or company man) works a pre set schedule or rotation and drives a company rig. Yet I'm seeing more & more outfits classify company drivers as an IC.
A word of warning about this. There seems to be a significant increase of people getting stiffed on their pay. Particularly CDL drivers. If you have trouble getting paid the labor office will NOT help you recover your wages if you are a 1099 IC....only if you are a W-2 employee will they assist you to that end. If you are a 1099 IC - and you get stiffed - the labor office will tell you to get a lawyer and go to small claims court to file suit...a major hastle for you. Likewise if you are paid by a % of the work you do. If you are an hourly W-2 employee the labor office will take care of recovering lost wages.
I'm not telling anyone to avoid companies that follow this practice. Just make sure you do your homework on any outfit that does. Talk to current or past employees (in person or online) and find out if they pay their people on time and in full. I hate to see people bust their buns and get stiffed on their pay. Be safe out there...
That was a really good post. You must be in a good mood.
I'd like to add that when calculating how much you are "really" getting, if they tell you that you will make $100k, figure that to "really" be $75k. It's possible that it might really only be $50k - depending on the details.
Treat it like a temp job.
It can work just fine for some people. It's possible to just work 6-8 months out of the year regularly if that's what you want. Spend your summer hiking the Great Divide Trail or something ...
That was a really good post. You must be in a good mood.
I'd like to add that when calculating how much you are "really" getting, if they tell you that you will make $100k, figure that to "really" be $75k. It's possible that it might really only be $50k - depending on the details.
Treat it like a temp job.
It can work just fine for some people. It's possible to just work 6-8 months out of the year regularly if that's what you want. Spend your summer hiking the Great Divide Trail or something ...
Actually I was in a bad mood when I wrote that. I'm was thinking about going back up for this season but the guy I worked for is calling it quits and I have no bites from anyone else as yet. I don't like the idea of going up there empty handed with no job lined up, no place to stay, no interviews lined up, etc. You can't just blow into town and expect to get hired by a half decent outfit overnight. That's a sure recipe for failure. You need to have a gig lined up BEFORE you arrive or yer spinning yer wheels. And this biz about hiring as an 1099 to drive a company truck sounds a bit shady IMO.
Likewise if you are paid by a % of the work you do.
Just as an FYI, percentage of the load/work is typical and perfectly acceptable. But it should still be on a W2, not a 1099 That should raise red-flags because unless they own their own truck, there's no way a driver should be on a 1099.
(They do it so they don't have to go through the hassle of paying the employer half of FICA/payroll taxes, btw)
(They do it so they don't have to go through the hassle of paying the employer half of FICA/payroll taxes, btw)
And no workman's comp, no unemployment insurance, no health insurance, no overtime pay, no vacation pay, no holiday pay, etc., etc. Oh, and if "they" go belly-up, you're at the end of the line for collecting your pay too. Employees get paid first, iirc. I can't imagine driving a company truck and not being an employee. Sounds odd.
I can't imagine driving a company truck and not being an employee.
You need to embrace your inner child and get a better imagination.
As long as the premium in compensation is large enough, you can buy your own health insurance, pay the SE tax, etc. Unemployment insurance is qualitative, but I'd waive it for 5% more pay.
Now, change the word "imagine" to "believe" and you probably have something.
I don't believe that there is a cheapskate trucking company that's paying enough of a premium to make up for all the lost benefits of being a W-2 employee.
I'm pretty conservative when it comes to business taxes and regulations, but I'm pretty left-wing when it comes to allowing companies to classify W-2 employees as contractors.
The only way I'd remotely consider being a 1099 IC is if they paid me in cash and I got to set my own hours, days. etc.
And the first time I get stiffed?? -- bye, bye in two seconds.
I hate to see the air lines on all their trucks get tangled up somehow.
And no workman's comp, no unemployment insurance, no health insurance, no overtime pay, no vacation pay, no holiday pay, etc., etc. Oh, and if "they" go belly-up, you're at the end of the line for collecting your pay too. Employees get paid first, iirc. I can't imagine driving a company truck and not being an employee. Sounds odd.
There is no overtime if you work by % of the load either...whether yer W-2 or 1099. I've never heard of anyone (ND or elsewhere) that offers a 'higher % after 40'. At % it all boils down to straight time...good for them - not for you. And with no help from the labor office if you get stiffed it's best to get paid by the hour. Not a % or by the load - by the hour!
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They really don't like employers who mis-categorize employees.
