There are benefits to being a professional truck driver working with a 1099 status. For some truck drivers, 1099 is the most beneficial classification as it gives them more control over their pay.
What is a 1099 worker?
A 1099 worker is considered an independent contractor and is self-employed; you are your own boss. The 1099 is a tax form that is used to report self-employed wages to the IRS and has become an easy way to describe independent contractors vs. W-2 employees.
There are many advantages to truck driving as an independent contractor:
- More flexibility in your work. This allows you to choose the days you work and what loads and routes you’re willing to accept. Whether you’re looking to spend more time with your family, care for a loved one, attend graduations, or go on vacation, you have the flexibility to do so.
- Broader Work Experience. Working as a self- employed driver you can drive for different companies, drive different types of trucks, take different runs and make different types of deliveries without applying for a new job and starting at a different company. Many of our flex drivers like the variety of work and routes while expanding their resumes.
- Opportunity to earn more. Most 1099 positions pay more wages than W-2 jobs, giving you more earning potential. While it is true you’ll need to pay additional taxes, tax deductions are key.
- Higher take home pay. As a 1099 contractor, you typically earn a higher rate per mile, or per load, or per hour compared to company drivers. You are paid a gross check and taxes aren’t withheld from your paycheck. Your gross pay looks bigger upfront and you have the opportunity to leverage tax deductions.
- Tax deductions. As a 1099 worker, you are classified as a self-employed contractor and allowed to take higher income tax deductions than W-2 employees. Tax deductions include gas mileage, maintenance, truck payments, insurance, lodging, meals, home office expenses, supplies/equipment, cell phone bills and more. If you’re used to being a W-2 employee, the initial shift to 1099 can come with a learning curve, however, there is a lot of tax software available that makes expense tracking, tax preparation and filing a breeze.
While there are pros and cons to any job classification, it ultimately comes down to what you’re looking for in a truck driving job. Many of our flex drivers enjoy the freedom of being able to work the days they want, allowing them to have a good work-life balance. In the Fundamental Flex Program, drivers are in control of what runs they take, their earnings, their taxes and their time off.
Interested in working for Fundamental Labor Strategies? View our available jobs and apply online today!