Category: Form 1099-MISC

Everything You Need to Know 1099 vs. W2

Posted on October 2, 2018 by - 2290, affordable care act, ExpressIRSForms, Form 1099-MISC, Form W-2, Form W-9, independent contractor, IRS, obamacare, owner operator, Personal Tax Extension

Everything You Need to Know 1099 vs. W2

As a fleet owner should you give your drivers a 1099 or W-2 Form? We hear this question a lot from drivers and fleet managers alike. You might think you have a ton of time before the tax season, however, now is the time to get your documents in order. The last thing you want is the IRS on your case about the classification of your drivers.

While we do tend to focus on Form 2290, we understand the personal taxes of a professional truck driver can make a huge difference for both companies and drivers.

Do Your Drivers Need a 1099 or W-2?

Misclassifications continue to be a subject for concern among both companies and drivers, so it is a point that needs particular attention. So how should your fleet approaches classification?

When you bring on a new driver, you should determine if they are a full-time employee or an independent contractor. This should be priority number 1!

This will determine if they will receive a 1099 or W-2. Now, we’ve heard stories from some drivers where companies won’t discuss employee status until tax forms are due, but we suggest clear and open communication with your drivers from the very beginning.

Some fleets might be tempted to put the burden of taxes on drivers and send them a Form 1099, but that route can only be traveled with specific conditions geared towards independent contractors.

My point is that treating a full-time employee as an independent contractor will lead the IRS to your front door. Plus, the IRS get their money one way or another. Might as well keep your classifications kosher. 

Independent Contractor or Company Driver?

The status of your drivers needs to be determined before the hiring process even starts. There are specific guidelines set by the IRS on what classifies as a contractor and which 1099 to file.

If you’re an independent contractor, you will have to cover your end of government expenses, but you also have more choice in how you haul.

Don’t Wait Until The Last Minute

If you have any questions about your business tax forms, contact our sister product, TaxBandits. It is their mission to help your business save time and money this upcoming tax season. Their bilingual support team is available via phone, live chat, and email. Click here to learn more.

Learn More About TaxBandits

Watch Out! Avoid These Scams in the Trucking Industry

Posted on April 22, 2016 by - EIN application scams, Employer Identification Number, Form 1099-MISC, Form W-2, identity theft, IRS email scams, Social Security Number, tax scams

We’ve all heard the horror stories—whispers in a dark rest stop about a friend of a friend losing his freight, his job, and eventually his house to a scam.

It can happen to anybody, these days.

In the trucking industry, we like to watch out for each other.

No matter what side of the rig you stand on, there are scams running about. So watch out for these!

Fake Documents for Drivers

Sometimes a driver may receive a fax, letter, or email from someone with a Washington, D.C. contact and an official looking Department of Transportation letterhead.

The goal of this communication is to scare the driver into releasing their financial information, and then identity theft is easy.

Remember, a government agency will never ask you to disclose financial information unprovoked—no matter how official the letterhead.

If you are contacted by someone asking these questions, contact the agency yourself to find out if there is a real concern.

And remember to only use IRS-authorized e-filing services when it comes to your taxes.

Company Independent Contractor Scams

Now, there are sometimes mix-ups—and this could honestly happen by mistake.

But there are a few companies who think they can list employees as independent contractors to avoid compliance with Department of Labor regulations, IRS regulations, DOT regulations, and OSHA regulations.

Shady companies will see this as an opportunity to add to their bottom line, since they’re excused from covering employee expenses.

Since independent contractors aren’t employees, the driver ends up taking full responsibility in event of a citation, violation, or accident. Or they can lose their employment!

Of course, when tax time rolls around and the employee sees a 1099 instead of a W-2, things become more clear.

And by no means is there a problem with using independent contractors, but just make sure you know your status before it‘s too late.

Freight Identity Theft

It’s a pretty nasty scheme, really. Thieves will assume the identity of a trucking company from a deactivated and dormant carrier number from the Department of Transportation.

They then pretend to be a long-established firm with a good safety record, and will go as far as having fake paperwork and documents.

The cons then offer lower bids to freight brokers, and show up to the proper companies. It’s only once they get the goods that they vanish into thin air.

And just like your social security number can be stolen, your employer identification number (EIN) is always at risk for business scams! 

Stay vigilant and protect yourself from business identity fraud.

We know you’re worried about security, so rest assured that the ExpressTruckTax servers, data centers, and US-based customer support center are all in good hands. Your EIN is safe with us!

Whether you need to file your 2290s or generate an IFTA report, we’re here to offer you a safe and secure solution.