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Thread: Compensation

  1. #16
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Rick Gonzalez:
    Dear jhj,

    I hate to differ with you ... however ... there is a clear difference between the two. There have been cases where the IRS has tried to classify chauffeurs as employees, subject to tax with holding, etc, only to loose at the hearing because the limo company had properly established their chauffeurs as independent contractors.

    This is one of the primary reasons it is important for a company to consult a qualified corporate attorney and impliment an Independant Contractors Agreement which satifies the IRS criteria.
    <HR></BLOCKQUOTE>

    Sorry Rick, but I must agree with Jim. We pay our drivers $7.00 plus Grat 15%. All of our drivers receive a W-2 at the end of the year. We have independent contractors that own their own Limousines and therefore they get a 1099. Also, having drivers as employees you also need to provide workers comp. I agree with Jim, by playing games in this area will result in alot of grieve.

    One option is to lease your employees from a employement agency. However you will have to pay fees and you are still responsible for paying the employer FICA taxes.

    We have several companies in Oregon who have drawn the attention of IRS, Oregon Dept of Revenue and the Workers Comp division. Sorry, We would rather be on the right side of the law, pay the taxes, do the withholding. We have better things to do with our funds than to pay an attorney to fight a losing cause. I have looked at all the options and have taken the advise from our Corporate Attorney and Accounting Firm.

    John

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  2. #17
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    If you pay your drivers 6 dollars an hour then that's the kind of service your clients are going to get in return. Remember 99% of your limousine company is "service." I'm sorry, but if I was doing a night out for $500. I wouldn't work very hard especially after thinking about handing you $440.00 of that, for nothing... Your drivers make your company what it is. Treat them like gold, because if you don't you'll be a driver again very soon!!!! 8-9 is reasonable.

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