Career Questions and Answers
where can i find legal docs stating that our drivers are subcontractors & responsible 4 doing their own taxes?
Asked by Steve-O
we need a legal document that our drivers can sign that they are responsible for doing and reporting their own taxes since we do not pay them any wages and they only work off tips/delivery charges.
thank you!!!
in the pizza biz you dont need to pay your drivers any wage...and they drive their own cars...
we are paying workers comp insurance for our drivers..... their pay is the delivery charge and all the tips. ive seen that before in many places before.
A:
Best Answer:
Just signing an agreement that drivers will be self employed doesn't mean squat. For pizza drivers, double squat. It is the actual details that matter.
If you have control over the worker, you are an employer and have to pay employment tax regardless of your legal agreement. If the drivers go where you tell them to on hours you set, can be fired at will and jump when you tell them to jump, you are going to be in deep do do the first time anyone gets fired or in an accident because you haven't paid unemployment tax or workers compensation insurance.
Take a look at IRS Form SS-8 and decide if your idea is going to pass muster. And for pizza delivery drivers, plan on them being employees coming out the gate.
Based on what I have seen pizza drivers being reimbursed for deliveries, they are giving away the store as it is. The IRS standard mileage rate for business purposes is 58.5 cents per mile. Are you planning on paying anything like that?
Besides trying to be a cheap so and so you this stupid idea is eventually going to turn around and bite you.
ADDITION: You get workers compensation insurance for EMPLOYEES, not self-employed contractors. Make plans now for employment tax audits by your state and IRS and have lots of money to pay both halves of Social Security and Medicare along with unemployment tax and the federal and state income tax you should withhold from EMPLOYEES' wages (paid on a piecework basis) plus imputed tips.
http://www.irs.gov/pub/irs-pdf/fss8.pdf
Answered by wartz
A:
Contact a lawyer or tax accountant to review the rules with you.
If you provide the trucks, there is no way you are going to successfully claim the they are contractors.
The fact that you dont want to pay minimum wage, issue W-2s, pay fica/mc and futa is not a good enough reason to call them independent contractors.
Just because "everybody does it" does not make it legal. Look at IRS form SS-8. Do you want one of the people you "contract to" coming back and filing it?
C'Mon, why would you be paying worker's comp if they weren't your employees???
Answered by v b
A:
It doesn't matter to the IRS what papers they sign, what matters is their conditions of employment. A nominally statutory employee who signs an independent contract agreement is still an employee. Instead of looking for legal papers, call the IRS - they can send you (or refer you to a web page with) a document explaining it.
Answered by colanth
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