Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Lease with driver for Taxi Illinois

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Lease with driver for Taxi Illinois

    I am the owner of a small Taxi fleet. I have a lease with my drivers that they will recieve 50 % of the all calls dispatchedand pick ups . I provide the auto, insurance, maintance, and a dispatch servcie.
    They provide gas, cell phone if they like. They choose whether or not to accept calls, work on thier scheduling. Leave early stay late what ever they pretty much want to do. I dispatch, maintain cars and collect 50 % dailey.
    I have been in several battles with IRS, Work Comp Insurance and now again with IDES. I have had drivers loose thier permitts with the city, but then they try to draw uemployment and I dispute because they are contractors and they no longer have a permit.
    Ides is trying to make me responsible for thier paymnets of unemployemnet when they didnt make any. I see this as the 1St step, and then back to IRS and so on all trying to make them employees.
    With all this in mind am I better to continue defending this issue or try to pay them on a comisson basic, I"m thinking if I go a comission basis I'll end up paying all the taxs, and then being employees.
    Idea Thinking about selling them cars so they have all the responibiltys. Problem with this is I do not believe they would continue, lack of saving for any up coming bills.
    Insurance and maintance.
    Looking for any good ideas to not just drop the servcie in my community?
    Last edited by khans; 01-24-2010, 01:32 PM.

  • #2
    I am pretty sure that this is legally more complicated then you can get a good answer for on a free internet website. Much larger companies presumably with good lawyers such as UPS and FedEx have done similar things and have gotten inconsistent results in courts. I can give you a pointer to the rules, maybe even point out which rules are at risk, but the plain truth is that this sort of situation is historically ambiguous, meaning Wheel of Fortune time where the courts can pretty much make any decision that they want to. IMO, no simple solutions here. IRS has some "safe harbor" rules that employers have historically relied on (and in some cases, pushed to the breaking point), but the IRS rules apply to no one but IRS. Federal and state DOL can (and have) ignored the IRS safe harbor rules. It is not uncommon for workers to be employees according one government agency and independent contractors according to other government agencies.

    http://www.dol.gov/esa/whd/regs/compliance/whdfs13.pdf

    http://www.irs.gov/businesses/small/...=99921,00.html
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

    Comment


    • #3
      I have driven a cab as a secondary source of income, typically all drivers are independant contractors because they can meet the requirements whereas most employer/employee relationships do NOT meet those requirements. I agree though that you need to consult an attorney who is more specialized in this area.
      Not everything in America is actionable in a court of law. Please remember that attorneys are in business for profit, and they get paid regardless of whether or not you win or lose.

      I offer my knowledge and experience at no charge, I admit that I am NOT infallible, I am wrong sometimes, hopefully another responder will correct me if that is the case with the answer above, regardless, it is your responsibility to verify any and all information provided.

      Comment

      The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
      Working...
      X