usage fee
- Thread starter franchise
- Start date
No, I am not leasing he said it is something they charge for tax purposes. He said if they didn't I wouldn't be an independent contractor I'd be an employee.
Ok...I guess it depends on how it is written in their contract. You could be on a 60/40 split giving you 100 percent of the FSC and they are claiming the 40 percent as a "usage fee".
Hard to tell without reading the contract. The verbage could be applied differently in several applications.
Hard to tell without reading the contract. The verbage could be applied differently in several applications.
paullud
Veteran Expediter
They are basically renting the van out to you so that you remain an independent contractor because they want to show you had a stake in the equipment. It is not normally done but it is the smart and legal way to do it. All these drivers out here that are classified as independent contractors on a 60/40 split are actually employees in the eyes of the IRS. It seems your fleet owner knows the laws and is doing a good job of protecting you and his business. The usage fee itself is not common because a crack down is unlikely.
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If your making good money the usage fee shouldnt be an issue. Simular to an escrow that most carriers charge to cover expenses you have when you leave. Read the contract if you have questions and dont get clear answers properly resign and drop the truck or van off at thier office.
Bob Wolf
Bob Wolf
outandbout
Active Expediter
If you are not leasing the equipment and the person you drive for is having control over your operation even as simple as determining how long you are supposed to stay out before going home, then you should print and fill out IRS form ss-8 to be reclassified as an employee.
Link:
http://www.irs.gov/pub/irs-pdf/fss8.pdf
Link:
http://www.irs.gov/pub/irs-pdf/fss8.pdf