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Employee using their own plow truck

Discussion in 'Business Fundamentals' started by sven1277, Sep 6, 2015.

  1. sven1277

    sven1277 Senior Member
    Messages: 480

    My mechanic is talking to me about putting a plow on his truck this year and running a route. What are the legalities of doing this? He is not a sub. My biggest question is insurance. I would pay him at a rate more like a sub. He would be responsible for his own truck/plow repairs. Any insight would be great. Thanks.
     
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    Ok,pay it not the issue,
    He still needs the proper insurance, cya , and you need to notify your agent.

    Can you list him and his truck under your insurance?
     
  3. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,924

    He's a sub. he needs to get his own insurance. You need to make sure he has the proper coverage.
     
  4. beanz27

    beanz27 Senior Member
    Messages: 984

    X2

    You could put him under your insurance, but good luck telling the Irs your paying an employee $60+ hourly in snow removal, he'd also be ridiculously taxed so consider him s sub
     
  5. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,498

    What happens when a piece of equipment goes down in a event?

    Do you pull him off his route at xx per hour and now pay xx to repair it?

    After a 20 hour plowing, do you expect him to work on ur stuff to ready for the next nights event?

    You'll be creating bad feeling if you do.

    He needs to be paid as a sub and meet all the criterias as any other sub.
     
  6. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    He's not a sub he is an employee who has hie own tools.

    http://www.irs.gov/Businesses/Small...ependent-Contractor-Self-Employed-or-Employee


    He is under the direction of sven1277, sven will control what work he does, how he does it and when.

    The details of his work as a makenoknock is up to them to figure out.

    1 he is all ready an employee.
    When hiring, ask yourself: will I be able to control when this person comes and goes (such as their hours and vacation time)? Will I have final say in what they’ll be doing and how they’ll be doing it? Will this person be hired for a non-specified time? Will I be giving them the supplies they need to do their job?

    If you answered yes to these questions, odds are, you’re talking about an employee.
     
    Last edited: Sep 7, 2015
  7. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,924

    The company's insurance won't cover him tho.
     
  8. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439



    I use to use my personal truck for work, and I was insured by the CO I was employed by.

    IF he is on the clock he is also covered by your INS if he gets hurt.
     
  9. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,585

    The employee will have to lease his truck to the company. Its easy just sign a piece of paper, ask your ins co they can help you out with it.
     
  10. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    so your telling my that pizza-hut leases their delivery guys car?.
    and or the delivery guy is a subcontractor for pizza-hut?
     
  11. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,924

    That's not always true. It's the companys insurance decision to make that call.
    It's not if he gets hurt, it's if he hurts others, or all the b.s. that goes with it.

    I was in the same boat as the op's mechanic. My employer wouldn't cover my truck. I had to become a business and get insurance and all that good jazz. I also never "punched the clock" while using my truck. However, being the mechanic, usually had to "punch out" to go plow during normal work hours.
     
  12. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    ok while that can happen,
    the lines were blurred as I bet you had some direction on how and when your work was done?
    you may have still been a employee.
    http://www.irs.gov/Businesses/Small...ependent-Contractor-Self-Employed-or-Employee

    or you could have had tickets or a accident that drove up the cost of insuring you.


    While in most cases the PAP will cover you for business use of a personal vehicle, there are situations where it will not. Such situations are not uncommon and, if not remedied, could result in significant financial detriment for you and your family. Consult your Trusted Choice® independent insurance agent for advice on how to close potentially devastating gaps in your PAP today.

    he can get commercial INS and have snowplowing listed,
    then he can still work as an employee.

    http://www.gocompare.com/car-insurance/insuring-your-car-for-work-use/
     
    Last edited: Sep 7, 2015
  13. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    Small Business >
    Managing Employees >
    Employment

    Can Employers Make You Use Your Own Vehicle at Work?
    by W D Adkins, Demand Media

    Sometimes you have to use your own vehicle to do your job. If you must do a lot of work-related driving, it can get expensive. Many employers reimburse employees for the business use of their vehicles. If that's not true in your case, you still may be able to take a substantial deduction on your taxes for work-related driving.
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    Employer Latitude

    As a general rule, employees are hired at will. This means an employer can impose requirements such as making you use your own vehicle at work. Employers are not required to reimburse you for mileage in most states. However, if a company has a stated policy of reimbursing mileage or if reimbursement is part of a union or other employment contract, you usually must be paid for work-related mileage.
    http://smallbusiness.chron.com/can-employers-make-use-own-vehicle-work-12597.html
     
  14. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,924

    Nothing to do with my driving. Just the way the companys insurance was.
     
    Last edited: Sep 7, 2015
  15. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,498

    I've always played devils advocate in life.

    Answer me these scenarios

    Let's name the mechanic jack because he's a jack of all trades.

    Jack is a employee of John Does landscape and snow plowing. Jack decides to start plowing with said company with his personal truck. Let's say he's covered under the under the companys INS.

    He's off the clock driving and is involved in a accident with plow on truck, who covering it?

    He leaves the bar, couple of beers, hits someone, seriously injures or kills, who pays the bill, held responsible, I have a guess.
     
  16. grandview

    grandview PlowSite Fanatic
    Messages: 14,609


    Let's go deeper, gets pulled over and falls out of truck and breaks leg and can't work,guess who pays disability and has to hire a new mechanic.
     
  17. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,439

    If he is OFF the clock jack is on his own.

    He is only covered by the business when he,(jack) is on the clock.
    He still has to have INS as required by the state he lives in.

    even if on salary, was he engaged in a work related activity?
     
    Last edited: Sep 7, 2015
  18. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,498

    For the record, I do use my truck each and everyday for my company. Besides local work, I used my truck to haul company owned trailers and we'll as rented assets rented thru the company all over the 48 states and been to Canada. As well as plow company owned facilities as well as customers properties
     
    Last edited: Sep 7, 2015
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Might be easier just to buy a truck and let the mechanic plow with it.
     
  20. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,924

    Only problem with that is pay. Won't get the same rate using a company truck