As independent contractors, drivers generally sign an agreement with the company to provide services at a compensation rate to which both parties agree. A contractor can work for a certain number of hours and decide when he is at work and can taxi as he wishes. The driver pays for all certifications such as his driver`s license. Even when a shipping office handles calls, the independent driver can often create his own customer base independently of the company. Vehicles used in the driver and taxi industry must be checked regularly to determine if they are in service safely. These inspections differ from city to city, but standard rules include good brakes and service flashers. Drivers may also be subject to a physical examination, although the city or county sets this requirement. There is no minimum wage for the self-employed contractor. There is no guarantee that the driver will earn money.
Rates are usually distributed with the company – usually around 50-50 — and either the driver or the company pays for the gas according to the agreements. Positions are usually 12 hours a day and are often determined by vehicle availability. In some companies, the driver pays a weekly rental contract for a vehicle and keeps all rates and tips once the rental contract is paid. The use of independent contractors is common in many sectors and the soil transportation industry is certainly no exception. The use of the IC business model has many advantages for drivers and businesses, unlike an employer-employee model; However, there are also some risks. On the plus side, working as an IC allows a driver to control when, where and for how long he also chooses to work. The trade-off on this freedom is that the ICR is responsible for paying its own taxes and generally does not enjoy benefits enjoyed by many traditional workers, such as health insurance, days off and/or sick days. From the company`s point of view, the advantage of using IIs is that benefits as mentioned above are not required and no withholding tax and certain other taxes are not to be paid.