I.C or Employee?

[David Merrill]

If the company you work for tells you that you are and Independent Contractor and you are not sure, go to www.workerstatus.com and down load the S.S. 8 form. Send it in to get a determination. It may be well wort your time.

David E. Merrill

[RusKC]

There's so much stuff on there. Could you give us the main idea behind this? Very helpful for all the drivers out there.

[David Merrill]

The main idea is that there are a number of Operators who are telling their Employees they are Independent Contractors when in fact they are Employees. The SS 8 form eill start the wheels in motion to determine the relation ship. If the IRS finds that the Operator does not have a legal I.C. operation, He will ahve to make up all back Taxes and Workers Comp plus refund to all his Employees what they had over paid. It is a risky business for the Employer to try to pull this scam on Chauffeurs. If they get caught, it could put a lot out of business.

David E. Merrill

[AAA/GOT]

A good rule of thumb is that if you are driving the company's car and dispatched by the company you are legally an employee.

Matt Harrison
AAA Guaranteed On-Time Limousine, Clinton NJ

[RusKC]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by AAA/GOT:
A good rule of thumb is that if you are driving the company's car and dispatched by the company you are legally an employee.

Matt Harrison
AAA Guaranteed On-Time Limousine, Clinton NJ
<HR></BLOCKQUOTE>


Do limousine companies save on insurance premiums when they have employee drivers vs. contractors? Does commercial coverage already include the workers comp, or thats an add-on item? I am thinking that the companies that are hiring only drivers as contractors, do not have to pay for add'l driver coverage, and could give a hoot about how many points the driver has. A

[David Merrill]

If anything Companies who have I.C.s probably pay more for their Commercial liability insurance. I looked into starting a rental car business which is essentially what an I.C operation is and if you think Limo insurance is high, you ain't seen nothing.

I.C.s operations do not carry workers comp, nor do they collect payroll taxes. They leave all of that up to the I.C.. Problem is with many I.C. operations, they don't pay any more than an Employer/Employee operation. Look who gets the "brown end" of the stick, not the operator, thats for sure.

David E. Merrill

[LA Limousines (David)]

To be an IC and still use their equipment, they can't have any say in what jobs you do, or what jobs you take. If you can't refuse to do a particular job, you're an employee. An IC is a business, and businesses can refuse work for no real reason.

[AAA/GOT]

Do limousine companies save on insurance premiums when they have employee drivers vs. contractors?

Yes, on the auto insurance to some extent but not enough to cover payroll expenses. I beleive that in the case of a limousine company with 3 or more IC drivers the insurance company would have a greater exposure to liable action from an employee who was hurt on the job. If there is no Workmans comp insurance the lawyers will sue all involved parties and their insurance companies. The vehicle insurance company would have a much lower risk of suit from an employee if there was a comp policy in place.

Does commercial coverage already include the workers comp, or thats an add-on item?

No commercial auto insurance (at least not that I've seen or heard of) will not cover personal injury for the driver of the commercial vehicle. If you are employed in the USA the company is liable for any work related injury, behind the wheel or not. Workmans Comp is additional insurance over and above any vehicle insurance or general liability. Even an individual's personal health coverage will not pay a work related injury if they know it was work related. A claim that is the result of a car accidentis pretty hard to hide. Additionally, I've seen them go after the individual after the fact when their investigation finds that the claim was work related.

I am thinking that the companies that are hiring only drivers as contractors, do not have to pay for add'l driver coverage, and could give a hoot about how many points the driver has.

Generally speaking companies that don't play by the rules don't give a shit about anyone but themselves. They don't care that their client may be at risk. They don't care that you, as a driver, are at risk. The undercut the market price. They don't fix their cars to safety standard. Most of all, they devalue our industry. They are the ones we see on the news under the headline "Limo driver goes crazy takes 14 year old boy on hell-ride" or "Executive killed in uninsured limousine" or "Prom kids report their limo driver as DUI".

There is no place in the industry for this scum. My friend Dean would call them Share-croppers. I call them the underhanded scum of the earth.

Matt Harrison
AAA Guaranteed On-Time Limousine, Clinton NJ

[LA Limousines (David)]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by AAA/GOT:
Generally speaking companies that don't play by the rules don't give a shit about anyone but themselves. They don't care that their client may be at risk. They don't care that you, as a driver, are at risk. The undercut the market price. They don't fix their cars to safety standard. Most of all, they devalue our industry. They are the ones we see on the news under the headline "Limo driver goes crazy takes 14 year old boy on hell-ride" or "Executive killed in uninsured limousine" or "Prom kids report their limo driver as DUI".

There is no place in the industry for this scum. My friend Dean would call them Share-croppers. I call them the underhanded scum of the earth.

Matt Harrison
AAA Guaranteed On-Time Limousine, Clinton NJ <HR></BLOCKQUOTE>

They're also the ones who hide most of their charges to customers. Limo equivalents of late-night mail-order scams. The ones where they send you <enter useless crap here> for only 3 easy payments of $99. If you aren't satisfied, you can send it back for a full refund. What gets me is they can have everyone send it back and still make a profit because they don;t give you back the $25 shipping and handling fee...

[Dean Schuler]

David, You are only touching the tip of the iceberg. Wayne Smith, the longtime NLA Executive Director is the man to talk to. E-Mail him at wjdjsmith@aol.com.

[David Merrill]

Dean: I got all the information there was on the NLA web site. I have gotten a ton of information from the IRS. Having been a Taxi operator in the past, I had an I.C. Operation. At least in the Taxi Business, a Driver can make as much or as little as he chooses. I don't see how this can happen in the Sedan business because you do not have the option of picking up off the street.

Dean, I understand that Cary International is the King of the I.C. operators, perhaps you could share some of their secrets as to how they keep every one happy, including the IRS.

[Dean Schuler]

Wayne Smith can tell you the rest of the story-there are many chapters in that particular book. Wayne won numerous battles with the I.R.S. across the country. What he knows is what YOU NEED TO KNOW. Relative to your second question, I refer you to the TLPA.