Expedite Trucking Forums - View Single Post - Sub-contracting the proper way

truckercop · 11-07-2002, 12:52 AM

Hello Sir [Frank]:

Thank you for the valuable information on taxes and tax reporting. I have been pouring through your replys and posts, but I have not found the answer that I am looking for.

I have read horror stories where a truck owner leased to a carrier put drivers in the truck as sub-contractors and is now being investigated by the IRS for failure to pay payroll tax. What is the proper way to put drivers in your truck and list them as sub-contractors, allowing the contractor to avoid payroll tax?

Does it matter if the drivers are relatives or same household (other than hunband/wife).?

Does it matter if the contractor is incorporated and lists the drivers as officers?

Should a contract be drawn?

Can it be done without actually leasing the truck to the drivers?

Can it be done legally?

Thank you very much,

11-07-2002, 12:52 AM	#1 (permalink)
truckercop Junior Member Join Date: Feb 2002 Location: . Rating: Not Rated Posts: 14	Sub-contracting the proper way Hello Sir [Frank]: Thank you for the valuable information on taxes and tax reporting. I have been pouring through your replys and posts, but I have not found the answer that I am looking for. I have read horror stories where a truck owner leased to a carrier put drivers in the truck as sub-contractors and is now being investigated by the IRS for failure to pay payroll tax. What is the proper way to put drivers in your truck and list them as sub-contractors, allowing the contractor to avoid payroll tax? Does it matter if the drivers are relatives or same household (other than hunband/wife).? Does it matter if the contractor is incorporated and lists the drivers as officers? Should a contract be drawn? Can it be done without actually leasing the truck to the drivers? Can it be done legally? Thank you very much,