Reason Moving Company Hires Movers

For Lakewood movers, it is more convenient to use W3 employees instead of contractors, because there is quite a significant difference between the employee/ employee professional relationship and a company/ contractor relationship.

Besides, state agencies and IRS, which determine this type of classifications, decided that classifying a helper as an independent contractor would be difficult, especially when they work directly for a moving company and are being paid with an hourly wage.

On the other hand, a driver can be considered an independent contractor in certain conditions (if some criteria are being met).

Issuing them a 1099 at the end of the year must be based on several factors that qualify a true independent contractor:

  • The driver gets a percentage of the move, from the moving company
  • The driver pays their helper
  • The driver owns the truck, paying fuel and other expenses
  • The driver can experience profit or loss
  • The driver can accept or not accept a job offered by the moving company.

On the other hand, when a Lakewood moving company pays movers as W-3, employees are responsible for:

  • Social security
  • Medicare tax
  • Withholding state income taxes as well as federal taxes
  • Contributing to unemployment insurance fund
  • Getting worker’s compensation