Does the contract state that the owner operator is responsible for all expenses associated with running a business, such as:

  • Communication equipment

  • Barcode readers

  • Scanners

  • Manifests

  • Home office expenses and

  • Business cards

  • Vehicle expenses

  • Parking

  • Health insurance

  • Supplies

  • Cell Phones

  • Dues and subscriptions

 

The driver needs to be informed and acknowledge that all the costs associated with providing the service he contracted for are his responsibility alone (and he should include those costs in his rate negotiation process)

 

As an independent business, the drivers have costs involved with their operation.  These can range from the shoes on his feet to the insurance on his vehicle.  The number of ALLOWABLE DEDUCTABLE expenses for the driver afford him the opportunity to minimize his taxable net profit.  He would file a schedule “C” on his Federal Taxes and besides the obvious of auto expenses, the driver is also responsible for office supplies, business cards, manifests, phone, scanners, personal injury insurance, cargo loss protection…all of which are deductible.