Bates & Company
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Retirement, LLC
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Employee Benefits and Executive Compensation Associate Attorney Verrill
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Farmer & Betts, Inc.
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Retirement Plan Documents Specialist Loren D. Stark Company
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RTD Financial Advisors
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Pentegra
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Retirement Plan Administrator (TPA) Retirement Plan Consultants
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Carpenter Morse Group
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Retirement Plan Relationship Manager ERISA Services, Inc.
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EPIC Retirement Plan Services
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Retirement Plan Legal Specialist Pentegra
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Nicholas Pension Consultants
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Trucker Huss, A Professional Corporation
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Retirement, LLC
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EPIC: TPA/DPS
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Plumbers Local Union No. 1 Benefit Funds
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Kentucky Trust Company
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Question 84: A trucking company has only two employees. The truckers are treated as independent contractors and payment to them is reported on a Form 1099. Is it possible to set up a 401(k) plan covering the truckers, even though they're not paid via a Form W-2? |
Answer: The issue is not whether they are paid by a 1099 or a W-2. The question is whether they are really employees, as your first sentence indicates, or really independent contractors, as your second sentence indicates. They could be either. The IRS audit guidelines for employee/independent contractor issues give several examples relating to the trucking industry. These examples show that, depending on the facts, a trucker could have either status. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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