Quote:
Originally Posted by dlrrtx
Superdelegate,
Will this cut out ALL sub contract labor? I use labor periodically, and pay them well, $15 an hour. If this does pass, I will just drop down to paying $8 an hour, with the rest going toward taxes, etc. Most of my labor is high school students. This will be a great lesson for them. I will explain to them, that they are getting paid the same, but the government is taking half of it.
BTW, I use independent truckers everyday, how do you think this will effect the industry?
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We're gonna be in deep shit if this nutjob Obama gets elected. They are pretending that this law is to eliminate abuses in the 1099 status. That's not what they are after though. They want to force me and others to pay FICA tax on the money I pay to the contractor. See right now my guys are all self employed I pay them by the mile. They buy their own gas. For 2008 the IRS allows 48.5 cents per mile as a standard method of accounting for vehicle costs.
I'll give you an example I've got a guy who drove 200k miles last yr. I paid him about $125,000 he takes $97,000 off of the top for vehicle costs that includes wear and tear on his truck and gas, insurance, oil changes, tires and anything related to the truck. By the time he takes his other expenses off he only pays taxes on about $9000.00. That's like $1400 in self employment tax, which is social security tax. If he works for me and I pay him salary of $50,000, he pays about $3750 in FICA tax and I have to match it. And this is only the FICA tax, not to mention unemployment taxes and medicare, income tax, ect. Plus the accounting costs of doing all that. So do you see the problem.
This will put me out of business. If I could raise my rates enough to make up for the new tax, the shippers will simply charge more for their products. Can you say inflation! So I'm selling out now, taking my money and running. The commies are after your money folks.