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GENERAL LIMOUSINE TOPICS
General Limousine Industry Topics
Employee Vs. Independant contractors|
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www.birminghamlimo.com Location: ohio
Registered: August 02, 2004
Posts: 407
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The company in Michigan still exists today. I ran into a guy a few months ago while driving home from the office , when I saw a mini bus at a local reception hall. I pulled up and looked for DOT or other legal markings, and the driver told me he rented the bus and drove it himself.
I will search for the name and psot the info. |
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GRAND MASTER LUFF / Part Time Bartender Location: Bakersfield, CA 93307
Registered: April 28, 2001
Posts: 1688
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I would like to write something but in this case the problem is the lead source. You put me in touch with the guys in Michigan.
Because I have never heard of a limo company doing this I don't have anyone to interview who could give a comprehensive interview about how it all works. Further complication arises in locating someone because Jeffrey doesn't have a profile so it is Anywhere USA to me. I don't even know where to begin. Probably just as well because I was given six assignments to fulfill over the weekend as well as a blog report on the LCT blog. Hope to hear back from you Jeffrey so we can share this information around the world. |
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Limo God Location: Lupton mich USA
Registered: May 30, 2002
Posts: 2256
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Years ago there was a Bus company in Michigan who did the same thing. You rent the Bus from him and you had the option of providing your own Driver or hire one of his "approved" drivers. Here is the problem. You as the client then become the employer. You are then responsible for the Driver. If there is an accident and the driver is injured, you are on the hook. It is just like you hire a "Guy" to fix your roof. He falls off, you better hope your Home owners insurance is paid up.
Jim, you really do need to write something on this issue. Not that it will make any difference to the Guys like I had you try to talk to for me but it may help some poor Guy getting into the business from paying Uncle George (or who ever may be taking his place) for the rest of their lives. David E. Merrill |
Shake Master![]() Location: LA,CA
Registered: May 31, 2001
Posts: 1429
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See Jim there is still some conversation to squeeze out of these old threads. Jeffery brought a new angle to discuss. No harm. Would love to hear from a consumer who booked a limo this way as well.
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GRAND MASTER LUFF / Part Time Bartender Location: Bakersfield, CA 93307
Registered: April 28, 2001
Posts: 1688
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Okay,
Maybe this old dawg just isn't as smart as you Jeffrey so I am willing to learn if you are too. I need you to explain it too me a little better. Duh...... just doesn't get it for me. First of all, why would you post something on a thread that is over two years old and has been dormant? Now let's get to your first post to try to clear it up for me and bring it to a level even I can understand. My friend Steve is much smarter than me so maybe he can explain. Here we go..............
AH, NO - THE ANSWER OF "CORSE" OR EVEN OF COURSE WOULD BE NO! THIS IS CLEARLY NOT A GOOD IDEA. IN THE CASE OF AN ACCIDENT OF THE VEHICLE, BIG PROBLEM. THE "DRIVER" WILL PROBABLY NOT REPORT HIS EARNINGS AND ULTIMATELY WILL BE IN HOT WATER WITH THE IRS. IF THE CAR BREAKS DOWN, WHO IS GOING TO BRING ANOTHER CAR. HOW WILL THE CHAUFFEUR BE COMPENSATED FOR DOWN TIME AS THE CLIENT WON'T PONY UP FOR THE HOUR THEY WERE DEAD IN THE WATER. I SEE NOTHING GOOD OF THIS SCHEME. I am interested in doing a feature story on this company in an upcoming column just to find out what they hope to achieve in this concocted business model. I also wonder if they have ever been to a limo show and the educational seminars hosted by the two industry magazines. I think probably not. I am always trying to learn and always looking for new topics to write about in LCT Magazine. I am sure Dean could do a great story on this in Limo Digest as well. It is an interesting concept. Please post their name and location. |
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Participant Registered: April 25, 2007
Posts: 21
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duh???
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GRAND MASTER LUFF / Part Time Bartender Location: Bakersfield, CA 93307
Registered: April 28, 2001
Posts: 1688
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Huh???? Let's dust the mold off this two year old topic. I don't get it. If you want to learn more about IC vs. Employee, search this forum under the topic which has been discussed many, many times over the years with much information available here.
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Participant Registered: April 25, 2007
Posts: 21
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These companies have a long list of drivers that are approved to drive for them, the only time you would not get a driver is if the cars are all booked than you wouldn't need one. The customer pays the limo company for the car rental only, so the customer seems to be getting a better price from the company, and in reality they are and they pay the drivers better than they were making as an IC
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Shake Master![]() Location: LA,CA
Registered: May 31, 2001
Posts: 1429
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So Jeffery is that to say under that system I as a consumer could hire a limo but their might be a chance I could not find a driver for it?
But tips only? I would think each driver would negotiate an hourly charge with the consumer as well in addition to the gratuity. Because after all without the drivers pay being factored into the price of the limo they must be going out at lower than standard market prices. That means lower gratuity. Amazing the lengths folks will go to to not pay a fair and live-able wage. sounds like a mess of communication, already enough of that in our business just with employees. |
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Participant Registered: April 25, 2007
Posts: 21
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Wow this sounds like a big complicated legal issue on weather we should give the money to the government or the drivers, lets face it most of the money lost is coming out of the drivers pocket. Seems this would make it harder to get drivers if you take taxes out of there 3 and for 4 hour jobs.
In my area they are trying a new thing with the drivers, the car is rented to the customer for a set amount of hours, the company has a listed of approved drivers that the customer can use, the drivers call the limo co. to get phone # and contacts and call the customers for details on the job, the drivers work for tips only and are not controlled by or paid by the limo company. all the details of the job are worked out by the driver and the customer. Of corse this idea has not been through the courts yet, but im wondering if this is a good idea to try???? |
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SINCE 1976 Location: Metairie, Louisiana 70055
Registered: August 31, 2000
Posts: 3744
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Dean Schuler |
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Limo Master Location: Brandon MS USA
Registered: September 05, 1999
Posts: 719
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Dean, Dean, Dean
Please do not remind me of any, any drinking fountain in Nevada. It brings back ghastly dreams!!!!!!!!and horrible memories!!!! Dick Hall (Army) |
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SINCE 1976 Location: Metairie, Louisiana 70055
Registered: August 31, 2000
Posts: 3744
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I would recommned that LWN call Wayne Smith of L.I.M.O. at 703-876-9201 and Mike Manning at NICA 1-800-551-6422. www.nicainc.com .
This message has been edited. Last edited by: Dean Schuler, Dean Schuler |
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GRAND MASTER LUFF / Part Time Bartender Location: Bakersfield, CA 93307
Registered: April 28, 2001
Posts: 1688
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That was too funny Dean. Of course newcomers may not get it but I did! Can someone update me on the Fed Ex case and how it is progressing. The last I read is that the IRS aserts they are, by the natuire of how they operate, employees. I assume from this post that Fed Ex has appealed. Between running multiple businesses including the current construction of a new NASCAR track, I don't have any spare time to research anymore. With the upcoming show being just a week away today, I am gearing up to catch up, get ahead and head to the glitter and glam of Vegas. I think you have the best advice David to the question posed. Get a determination from the IRS prior to doing it and there would be nothing to worry about.
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SINCE 1976 Location: Metairie, Louisiana 70055
Registered: August 31, 2000
Posts: 3744
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I wasn't aware that you were a statistician and an Industry Researcher David. You are both very correct on one point-the shortcut "artists" are on the wrong side of the tracks and are just fooling themselves relative to the consequences of their behavior. David, You have had that point nailed for a very long time. Jim, You experienced the pitfalls personally and I respect that. Only a very few are selected for GRANDMASTER RANK ! By the way I hear that in Winnemucca, Nevada now there is a Porsche Memorial Drinking Fountain.
Dean Schuler |
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SINCE 1976 Location: Metairie, Louisiana 70055
Registered: August 31, 2000
Posts: 3744
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The "530 stuff "as you say works off a perecentage of operators in your local market. As far as Fedex goes, they may tinker with their business model, but I am told by higher-ups that they don't intend to change.
This message has been edited. Last edited by: Dean Schuler, Dean Schuler |
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Limo God Location: Lupton mich USA
Registered: May 30, 2002
Posts: 2256
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Jim and Dean: Having been in the Taxi business where the I.C. is the rule and not the exception, Jim you are so correct. The problem is many people fail to file the SS 8 form before setting up the I.C. operation and getting the determination from the IRS. All they need to do is file for determination BEFORE they do it and if the IRS gives their blessing then they have NO PROBLEM.
The 530 stuff applies if every one in your area of operation has a blessed I.C. operation then you are free to operate. Like I said, many Guys just do it WITH OUT the IRS blessing so to speak. I talked to A Fedex Ground Driver just the other day from what he told me, the IRS is leaning towards the Employee scenario but it is still being fought. David E. Merrill |
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SINCE 1976 Location: Metairie, Louisiana 70055
Registered: August 31, 2000
Posts: 3744
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Jim, My statistics come from different sources than yours... The size of the sample is so vital in establishing a baseline. What are your thoughts on Wayne Smith's surveys and victories and the Section 530 stuff ? What are your thoughts on the Fedex cases ?
Dean Schuler |
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GRAND MASTER LUFF / Part Time Bartender Location: Bakersfield, CA 93307
Registered: April 28, 2001
Posts: 1688
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I should have clarified that there are many companies who do use I.C.'s in a correct manner. However, the most recent surveys and polls in the U.S. clearly show that the vast majority are employees. While I don't have my most recent copy of LCT with me at this writing, you can check it out. The only proper way to do an IC agreement is to lease your vehicle to a chauffeur OR the chauffeur has his OWN vehicle. Either way, the chauffeur must pay for the car, car expenses, insurance etc. out of his/her earnings and only then will he be considered TRULY independent. Having gone through an 18 month court battle on this batter with Uncle Sam, I consider myself to be an expert in the matter. I spent hours and hours and hours testifying, listening to testimony, be deposed, listening to other depositions and the end result is if you have direction and control over how, when and where someone does the job, you are the boss and they are the employee in the eyes of the IRS.
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Limo God Location: Lupton mich USA
Registered: May 30, 2002
Posts: 2256
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Check out the web site for Boston Taxi. This gives the City regulated lease rates for an I.C. to lease a Cab in Boston.
David E. Merrill |
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Limo-Forum
Limo Forum - Limousine Industry Discussion, News, Business
GENERAL LIMOUSINE TOPICS
General Limousine Industry Topics
Employee Vs. Independant contractors