Benefits of Being Paid by 1099
If you are concerned about being paid on a 1099, or if you are just curious about it, we wrote up a few points breaking down some benefits.
1. This one is huge! As of 1/1/18, w2 drivers CAN NOT take per diem. This equates to about $30k-35k per year for the truck. So if you made $110k as a w2 "company driver", you would pay taxes on $110k. BUT, if you make $110k as a 1099, you would pay taxes on $75k-$80k. This means you keep as much as around $8k per year that you don’t have to pay in taxes!! (Effectively: if you made $110k on a 1099, you’d have to make around $118k BEFORE taxes in order to keep the same amount of money, after taxes! If you make $120k on a 1099, like we're saying you can do with us, you’d have to make around $130k on a w2 to keep the same amount of money.)
2. We came up with our pay to be competitive with what a "company driver" would actually make. Based on our years at a large dry van company (considering the longevity pay, safety pay, mileage bonus, etc), we made about $110k-$120k before taxes. Also, based on what we researched that company to pay now, it looks like you could maybe make $110k-$120k before taxes. So we are right there, at $110k-$120k before taxes.....but, back to number one, you get to write off $30k-$35k in per diem driving for us, that you would not get to driving as a company w2 driver.
3. The other huge benefit of being 1099, is that you get to be your own boss, at least when working for us. As a 1099, you get to choose if and when you take a load, and what loads you want, and you get to go home whenever you want. The only time you really have to deal with us is when you have questions or need help with something. Other than that, we stay out of your hair.
Husky Expedited Freight