How do Expeditors get paid as contractors LEGALLY???

Taylor506

Rookie Expediter
Owner/Operator
Offline
If I own vans, and put drivers in them, I would plan on paying them as contractors.

However, my accountant said that they may legally be considered employees.

The main reason for this is that they would be using my equipment.

How do all other fleet owners LEGALLY get around this?
 

Taylor506

Rookie Expediter
Owner/Operator
Offline
I did I little bit of research.
For trucking companies, it seems like when they hire contractors JUST to drive, they basically lease the truck to them. The terms of the lease would say things like,
-May only take loads from X companies dispatchers
-May not find your own loads
-Pay is 40% of what the truck makes (explain the 60/40 split)
-Rule about fuel card usage
-bunch of other random legal jargon
-X happens if you cut the lease short
-X happens if we cut the lease short
(I'm probably going to have no repercussions for cutting the lease short PROVIDED that the vehicle is returned to the yard at :COMPANY I CONTRACT FOR: or another designated spot first)

But basically, it seems like they can be legally be contractors if they lease the truck from you (even with some restrictions, like just accepting loads from X company and stuff like that)
-
 

Shotcallerj

Rookie Expediter
Owner/Operator
Offline
I did I little bit of research.
For trucking companies, it seems like when they hire contractors JUST to drive, they basically lease the truck to them. The terms of the lease would say things like,
-May only take loads from X companies dispatchers
-May not find your own loads
-Pay is 40% of what the truck makes (explain the 60/40 split)
-Rule about fuel card usage
-bunch of other random legal jargon
-X happens if you cut the lease short
-X happens if we cut the lease short
(I'm probably going to have no repercussions for cutting the lease short PROVIDED that the vehicle is returned to the yard at :COMPANY I CONTRACT FOR: or another designated spot first)

But basically, it seems like they can be legally be contractors if they lease the truck from you (even with some restrictions, like just accepting loads from X company and stuff like that)
-
Know this post is old, but those drivers can be considered independent contractors or 1099..... You just can't dictate to them where they go or what loads they take. Everything has to be on an offer basis. Meaning that the contractor has to have the choice to take a load or move to a certain area. You aren't leasing your vehicle to them. You're allowing them to use your vehicle to complete work and they are giving a piece of what they earn in that vehicle to you. Hence contracting.

They only become employees if you are telling them where to go and when to go. Some fleet owners think they're creative by putting it in a contract that you have to go wherever the dispatch of the company that vehicle is contracted to.... But even if that individual agrees to that contract they are still misclassified as employees. Problem is most individuals who contract with fleet owners don't have many resources..... And fleet owners know this. So they can bend the rules and get away with it. One reason I ended up becoming an owner operator.
 
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