Posts tagged: payrol taxes

TCE Blogs: Uber Driver Is Employee, Not Contractor Says, California…#Really?

(Source entrepreneur.com/article/247453)

Wow, so that changes the game on Uber...Big Time!  America…you may have to find your Taxi’s number because this ruling in California may just change the way Uber operates…across the nation.  How and why you may ask?  Well it means that Uber may have to do what most businesses HAVE to do…when they hire folks: follow employment law!   If you are not sure exactly what this “hoopla” is all about, read the article RIGHT HERE.

(Source Google Images)

For those reading  this blog who may say “so what, who cares and …what’s the BIG Deal?”  Well Uber has been “cruising”  with its fleet of “low-cost high returns” drivers by keeping them as 1099 (independent contractors).  In short, by filling the driver need with 1099’s versus W2’s  workers,  UBER IS NOT REQUIRED to handle payroll taxes (state/federal/etc). That daunting task is the responsibility of the …”independent contractor” aka Jane and John personal car driver.  Companies who use this model (which is perfectly legal) for “filling or outsourcing their needs”  don’t have to deal with employment law factors related to hiring/firing, EEOC, ADA, Worker’s Comp, insurances or other human resources compliances (which means – they save BIG BUCKS).

The Career EngineerSo…since business progressive (and very liberal) California said “hold on, wait a minute…STOP” could other states or commonwealths (like my conservative Virginia) rethink their Uber business rulings?  So from my TCE viewpoint,  there are two ways that this can go..for Uber and the folks they “pick up”. One, Uber has to be an employer in California, the cost for service will go up substantially for this “new method” of transportation and demand will potentially go down.  Or, two Uber will say “we are out of here” and shut the party down all together with its “personal vehicle” service.  So it will be interesting to see how this all plays out.

In the mean time, I may have to get my whistle skills back and learn how to “hail a taxi”…again 🙂

NOW IT’S YOUR TURN

So..What say you?  What are your feeling on the whole Uber car service and the “personal ” vehicle use?  Is this California ruling a “good thing” or government meddling in the business world?  Would love to hear your thoughts…comment below!

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