Company vs. Contractor
In the trucking industry there are technically 3 types of drivers, but for the most part drivers fall into two categories: Company Driver and Contractor. Here are the differences:
Company
Paid by the mile (mostly between .25c and .35c). You are told where to go where to fuel, however you do earn vacation with the majority of companies and you get a w-2 at the end of the tax year. Your dispatcher is your boss.
Forms and info:
Forms and info:
- I9 and W4 on employment
- Medical Card Required
- Provided W2 before the end of the tax year.
Contractor
Paid by the load. You will need to take into account that if you contracted on to a large carrier certain brokerage, equipment fees, permits, etc. will be taken out of the original amount. Also you will need to factor in your yearly taxes will be filed on the form 1040. Since the healthcare bill went through you will need to pay in quarterly to avoid huge fines and penalties.
If you go home - which you can do whenever you want you may be required to purchase your own diesel from the delivery point to your home location.
Contractors may be just contractors, LLC company based or even a corporation. If the company expands to a certain size you will want to get your own authority.
Contractors can run off of a load board, a larger company or a broker.
As a contractor you are responsible for purchasing your own equipment and taking care of it.
Your dispatcher is your business partner.
If you are a contractor you are allowed to have a pet on your truck and no one can disagree.
The company you lease to may or may not allow passenger and children under a certain age.
Forms and info:
If you go home - which you can do whenever you want you may be required to purchase your own diesel from the delivery point to your home location.
Contractors may be just contractors, LLC company based or even a corporation. If the company expands to a certain size you will want to get your own authority.
Contractors can run off of a load board, a larger company or a broker.
As a contractor you are responsible for purchasing your own equipment and taking care of it.
Your dispatcher is your business partner.
If you are a contractor you are allowed to have a pet on your truck and no one can disagree.
The company you lease to may or may not allow passenger and children under a certain age.
Forms and info:
- W9 required on employment
- Medical Card Required
- Responsible for filling out 1040-ES for quarterly payments
- Responsible for State Quarterly payments
- Provided 1099 at the end of the year and responsible for own taxes.