Question:
I work for a small company as an independent driver but I drive one of the company cars plus I get paid a percentage and have to file as self employed when tax time rolls around. Which means, no taxes from my checks. I have asked to see what is paid for each load. Since I am paid a percentage and am an independent driver I should be able to review the bill of lading with the amount paid for each load, right, according to law? I was just told by the company owners that their system is not set up to review what they are paid per load. I think that is just a crock! So, how do I know if what I am paid is correct? On the check stubs, we have to go by their word? Nothing broke down in categories, tarp time, wait time, nothing! One amount and we feel we are being cheated with them skimming from the top! Even the owner/opeartors that work for this company never see the dollar amount. Something wrong here. My question where do I go to find out about this, who do I talk to?

Answer:

"According to law" you are almost assuredly an employee, not an independent contractor, regardless of what your employer tells you.
I would look for a new job... the scam artists that run one have a good chance of winding up in tax court, and at the end of the day you are probably working for much less net money than you think.

Answer:

I agree with Mark, you probably are not an independent driver since you drive a company car and probably bear no risk for the cost of business.
I do not know why you would want to view the bill of lading. I have been around caring for 49 years and have not seen billing rate information on a bill of lading. Did you mean the rated freight bill?
Whether or not you are entitled to view the rated freight bill depends on the law of the state. What state are you in?
I had a skimming case a few years ago where owner-operators were skimmed from but you are not an owner-operator. Under the truth-in-leasing regulations, owner-operators who are paid on a percentage basis are entitled to receive copies of the rated freight bills.
NOTHING IN THIS POST SHALL BE CONSTRUED AS CREATING AN ATTORNEY-CLIENT RELATIONSHIP.

Answer:

Yes, the freight bill or what was paid for hauling the load. I am paid on a percentage and I don't know if I am actually getting paid what I am suppose to. Their (the company) CPA does most the drivers tax returns and we end up owing out the you know what. I have questioned that myself. Yes, they (the company) pay for fuel, permits, washes anything related to the business expenses. So, I don't hve much as far as deductions except my meals.
I just looked at the last year return. Filing self-employed and where you have to list occupation the CPA put, freight driver. I had to pay self-employment taxes.
I am in the state of Texas.
Thank You for your responses.

Answer:

I'd suggest taking this question straight to the tax forum's moderator, Russel or a CPA working for you that is more versed in caring taxes & the IRS than the people you work for.
By all information you've presented here, you are an employee of that company regardless of what they told you.
They owe you a lot of money and...the IRS as well.
Go get 'em tiger.
bc

Answer:

I hear tell that the IRS loves situations like this.

Answer:

I went to the IRS website and you all are correct. There is documentation describing both what an employee is vs an independent. You are right, I am an employee but the company is having me file, self-employeed. A form 1099 and all. This is my second year with this company. All the drivers, even the owner/operators have never seen a freight bill. They just refuse to show those documents. Now I find out I am treated as an employee and have to file independent, self-employeed. Doesn't make sense. Scams! NOW WHAT? Has anyone else her had this problem?

Answer:

I'm thinkin' this is where OPIE steps in.
Goat Man, do a search for posts by "Opie" and make contact with him. He's a lawyer that champions drivers and O/O's.

Answer:

I'm with Joe, this is where Opie may be your best bet.
Although, it might take the combined knowleges of both Russel & Opie.
Sounds like you might be able to spread the fees around the shop if there's other drivers in your same condtion.
You might also consider bracing yourself for a new job if you persue this.
Frankly, I would already be looking & have something cooking before I pressed this issue.
It would be illegal for them to can you over this but that's what will likely happen. It's something you'll have to deal with on it's own later.
Best of luck.
bc

Answer:

Yes, I have already thought about the 'canning' end of the deal. I have been looking around for another job since they are so HONEST with the drivers.

Answer:

Goatman45, I am going to respond to you, but this is about a lot of carers, that I hope learn something from you.
You were given some good advice, BUT you did not respond to it. Both Opie and I have forums just for carers like you.
You have questions about the honesty of the company you drive for. Yet, you let them do your income taxes????? I guarantee you have over paid your income taxes.
What the company is doing is illegal. You are paying ALL of the Social Security, and are not covered by SSI should you get hurt. I doubt if the company has workers comp and I know they do not have unemployment.
You are paying 15.3 percent of your net income in Self-employment tax plus income tax. Good thing you live in Texas...no state income tax.
When you file your income taxes for 2005, find a competent tax preparer and have them file an IRS form SS-8. That will force your company to pay half of your taxes. Then when the IRS comes down on them for all the other employees they have had in the past it will probably put them out of business.
Your situation is getting more common in the caring industry everyday. Since people are willing to get screwed by their employers and not retaliate, companies are ready and willing to do it.
You are by ALL laws an employee. You see your company is saving about 12% of your wages by not paying their share of the taxes and benefits. They also can be in denial of all responsibility for your actions. That is why they call you an independent.
Good luck. Another thing. When you work for these kinds of companies it is hard to get a job with a good company. Most companies look at you the same way they look at the company you work for.

Answer:

Yes, All here at this forum have given great advice and all is highly appreciated.
I have begun working on the Form SS-8 online and read the IRS pamphlet on how to determine the difference between Independent and Employee. I know the other drivers all complain both the Owner/operators and the company drivers (now we know who we are) that all are paid on percentage but never get to view the Freight Bill. Several have asked and get numerous explainations or excuses and would not make sense to me I would say. I honestly do not think I or the others fully understood what has been going on and just now are beginning to question.
Once again thank everyone for their responses and yes, I can see clearly what was very cloudy for me and the others right now.
Where are the other forums located you are speaking of?

Answer:

Opie's Forum is this one. He may be busy on a case but, I'm betting he'll jump in.
Russell's Forum is here.

Answer:

The National Labor Relations Board has recently ruled that FedEx "owner-operators" are, in fact, employees entitled to organize within the meaning of the National Labor Relations Act.