Team Needed-Paid on W-2- Good or Bad ?

[zorry]

I was talking to a friend that wants to add a truck or two to his fleet.
He thinks he should pay on a W-2.
He asked me if that would aid or hurt his search for a team.
I gave him my idea and told him if I started a thread we may get other's opinions.
So, what's everyone think of his idea ?

 

[xiggi]

Total guess on my part but I bet he could find some teams that would love being paid as an employee.

sent from my Fisher Price - ABC123

 

[davekc]

Probably depends on what he wants to pay. If one is a employee, workers comp and social security collections enter in to the picture. May also have to deal with city and state payroll taxes depending on what state he is in. Several things to consider that a attorney could advise on.

 

[paullud]

I would think many people would like to be an employee to avoid the end of year surprise. The owner gets control over the truck though which could be good or bad for both parties.

Sent from my SCH-I535 using EO Forums mobile app

 

[zorry]

You're right on the control issue, but I don't believe that'll be a problem.
I think he will pay %, so he'll let them run as others do.
He can do the math on his associated costs.
His question was "will this make it easier or harder to find good quality teams ? " .

 

[Maverick]

You're right on the control issue, but I don't believe that'll be a problem.
I think he will pay %, so he'll let them run as others do.
He can do the math on his associated costs.
His question was "will this make it easier or harder to find good quality teams ? " .

Just a hunch, having driven team, fresh out of CDL school couple of years ago. Good teams are already established for a lot of companies. Frankly, being so ignorant at the time, it was a benefit for me personally to be on W-2.

The new person needs to become mindful of keeping receipts, how it all works, and learning the Expedite business as a whole. Withholding the taxes should bring some peace of mind, and IMHO....benefits the person just coming in. Probably makes mamma or hubby a little more comfortable as well.

If I were hiring new drivers, or looking for teams right now? I'd sell them on the W-2 end of it, and let em learn the business, especially if they tune into EO for tips along the way.

 

[runrunner]

I was talking to a friend that wants to add a truck or two to his fleet.
He thinks he should pay on a W-2.
He asked me if that would aid or hurt his search for a team.
I gave him my idea and told him if I started a thread we may get other's opinions.
So, what's everyone think of his idea ?

I would think,once he pays this way he could not change to IC,without getting into trouble with the IRS,and if he has others he pays as IC already,this might not work out in his favor.It is more expensive for him as well. I would make up a contract and go the IC route.

 

[beachbum]

Just think if the driver gets ****ed at the owner he just needs to complain to the IRS and the company would be on the hook for employer back taxes, since the driver is a employee.

 

[zorry]

BB, I believe this is part of his idea. There'd be nothing to go to the IRS about down the road as he'd be paying the employer's share from day 1.
If the IRS cracks down on the employee /IC thing he can relax as there'd be no penalties on his part..
He knows this will reduce his net profit.
He hopes it may help him attract a better team.
And give him a peace of mind.
Peace of mind is a good thing.
Treating your employees right, whatever you call them, is a good thing.

 

[runrunner]

The first owner I drove for took taxes and all,issued a W2 at the end of the year. I had to wait every week for my paycheck too. He was a good owner, let me do whatever I wanted. He said you can do a run from home and come right back to get loaded again or you can layover where you deliver it's up to you. If I did layover he gave me 10.00 a day for food. That was 1993 when Roberts gave you 50.00 for hotel when you didn't get loaded. After about 6 months he told me the it was getting to be to much,and if I would agree for him to stop and 1099 me at the end of the year,I could draw my pay every load on the Comdata card,so I agreed.(Owner paid fuel and tolls I got 40%.) I messed up at the beginning and didn't pay quarterly, but I did pay up though. You learn those little things as you go along.

 

[runrunner]

With a good sound contract, I don't see running IC as a problem. You can't expect to have much control over the truck and what they do,if you want too much control,then they are employee's.