Withholding taxes

[theoldprof]

Hi Recruiter Guys.

If a person is signed on with one of the big carrier such as FECC, Panther II, or Tri State, do they withhold any taxes from your earnings, or is the O/O responsible for his/her own taxes? Thanks, :+ :+

 

[X1_SRH]

Good question!! and a perfect one for a guy that has seen this business from both sides of the windshield... (Note that I am not speaking for all carriers, just making a general statement).

Owner/Operators signing on with a major carriers are viewed as "Independent Contractors". This means that they are paid by settlement and are issued a 1099 at the end of the year. No taxes are taken out of the settlements nor is anything paid into social security. Independent Contractors are responsible for their own taxes, and cannot legally be regarded as "employees" by the company that they lease their equipment and services to (hence, no forced dispatch.)

I hope this sheds a little light on the situation. - Scott


"My Old Ride"



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