W-2 For Truck Drivers

W-2 for Truck Drivers

Truck drivers who are considered employees (as opposed to independent contractors 1099) and receive a W-2 have a somewhat different set of considerations, let’s talk about W2 for truck drivers.

W-2 Employee Status

As a W-2 employee, your employer will withhold income taxes from your paycheck, and also contribute to Social Security and Medicare on your behalf. At the end of the year, you will receive a W-2 form from your employer that reports your income and withholdings, which you will use to complete your income tax return.

Tax Withholdings

As a W-2 employee, you’ll fill out a W-4 form when you start a new job to dictate your tax withholdings. You can adjust the amount withheld from your paycheck for taxes by updating your W-4 with your employer.
Learn more about W-4 form from IRS.
Or visit HRBlock article on W-4.

Benefits 

Unlike independent contractors, employees are often eligible for benefits such as health insurance, retirement plans, and paid vacation or sick leave. Participation in these benefits can have tax implications; for example, contributions to a traditional 401(k) plan can reduce your taxable income.

Expense Reimbursements 

Employers may offer reimbursement for certain job-related expenses. As an employee, any job-related expenses that are not reimbursed by your employer can no longer be deducted on your taxes as of the 2018 tax year due to changes in the tax law.

Per Diem Allowance 

Employers may offer a per diem allowance for meals and incidentals while you are on the road. This is often tax-free if it is within the federal per diem rate, but amounts over the federal rate may be considered taxable income.

Unemployment and Workers’ Compensation 

As a W-2 employee, you are typically covered by state unemployment insurance and workers’ compensation insurance. This provides a measure of financial security if you lose your job through no fault of your own or if you are injured on the job.

Social Security and Medicare 

As an employee, you and your employer each pay half of your Social Security and Medicare taxes. Your employer will withhold your share (7.65% as of 2021) from your paycheck, and they will contribute an equal amount.

Overtime Pay 

Unlike independent contractors, employees are generally entitled to overtime pay if they work more than 40 hours in a week. However, certain types of truck drivers may be exempt from overtime pay requirements under the Motor Carrier Act exemption.
GP Trans co’s view on W2.

As with any tax-related topic, rules and regulations can be complex and are subject to change.
Always consult with a tax or financial advisor for accurate information tailored to your specific situation.

W2 vs. 1099 the Difference for Truck Drivers here.

Learn about W-9 here.