How to Classify Workers with Trucking Payroll Software

Business owners will have different ideas on how to use trucking payroll software. Those who primarily hire company drivers may decide that they want software that prioritizes W-2 services. Others may search for trucking payroll products with reliable 1099 capabilities for paying independent contractors. The bottom line is that trucking software should benefit all the parties involved. The software can streamline how you make payments for your workers. It can also keep you compliant with the Internal Revenue Service.

Advanced Micro Solutions offers these flexible payment options for all workers. Our payroll tool is user-friendly and affordable regardless of who you hire to drive your trucks. You can pay your workers using AMS’ quick and accurate accounting features. You will also find that the trucking payroll software accommodates experienced payroll professionals and those who are new to running payroll in the trucking industry.



How to Classify W-2 and 1099 Truck Drivers

Employers in the trucking industry have challenging responsibilities when it comes to running payroll. Employers must invest in comprehensive software to thoroughly keep tabs on their employees’ payments and any employee taxes.

You can easily make an error if you try to manually report payroll for your contractors, temporary drivers, and any shift-working drivers. Misclassifying your workers is one of the biggest errors you can make. Employers establish their truck drivers’ employment status by looking at certain key factors.

W-2 Truck Drivers – Employers must classify all company drivers as W-2 employees. You mark these workers as employees in your trucking payroll software if you hired them for specific roles, like in any other industry. Using trucking software lets you keep track of how much you owe the employees based on their salary or hourly rate. You must also classify your drivers as employees if you provide them with company benefits, a company truck, a steady paycheck, or a schedule.

1099 Truck Drivers – Employers do not set work hours for independent contractors. You also do not restrict their mileage rates or pre-establish load assignments. Companies cannot use a satellite system or GPS to track their independent contractors’ locations. An employer cannot restrict these truckers from working with other carriers either.

Different states across the country have specific employment laws and independent contractor classifications. Make sure that your classifications reflect any state and local requirements.


Find a Simple Solution with AMS

Our accounting and payroll software facilitates employee payroll and non-employee compensation throughout the year. The payroll solution from AMS is an add-on module that supports companies that run “live” or after-the-fact payroll. Trucking businesses can benefit from AMS’ program that supports all 50 states and the District of Columbia.



Consider trying our free demo to discover how you can use AMS Payroll as an effective trucking payroll software. If you have any general software questions, call our customer support at (405) 340-0697.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.