Contractor Resource Solutions (CRS) was formed in 2001 with the intention of providing a contracting outsourcing company to provide equipment and drivers to transportation companies who utilized independent contractor owner operator fleets. CRS contracts with the owner operator driver to lease their owned equipment and their driving services under CRS, and then assigns these qualified owner operator drivers and their equipment to client transportation companies. Thus, CRS operates as a large fleet management company consisting of all independent contractor owner operator drivers.

The key risk management objectives performed by CRS are the establishment of the 1099 settlement payments under CRS, provide protections afforded under reclassification tests, and the comprehensive and coordinated insurance protections made available to our clients and the drivers we contract. The 1099's are transferred from the dispatching company to CRS as our company issues all of the 1099 settlement remittances directly to each driver and handles all of the Quarterly and Annual 1099 Filings under CRS's Federal Tax Identification Number. By holding the contract under CRS with each driver and by CRS administering the 1099 settlement compensation, we take on the position to justify independent contractor status as well as establish the proper and recognizable insurable interest with each driver under our program.

With CRS acting as a third party Contract Management and Services Company, CRS takes on the role of a Primary General Contractor between the dispatching Motor Carrier Company (our Client Company) and the Independent Contractor drivers who are contracted and paid by CRS. By establishing this Primary General Contractor position, CRS performs several key risk management objectives in establishing and maintaining the proper independent contractor status with the driver as well as establishing proper insurable interest between CRS and each driver who enters a contracted position with CRS.

• The direct contract position we establish with each driver to become the primary general contractor or the party now directly responsible for responding to reclassification challenges.
• CRS issues all of the driver 1099 settlement remittances directly to each driver and handles the Quarterly and Annual 1099 Filings under CRS' Federal Tax Identification Number. The 1099 reporting is transferred from being reported under the transportation company's Identification Number to being reported under CRS. Thus, establishing CRS as the first responsible party to deal with workers compensation coverage verification, workers compensation and state unemployment audit issues. This also relieves internal staff of the administrative burden of administering 1099 processing, settlement check issuance, tracking of added and deleted drivers, withholding and vendor payee deduction and remittance processing to allow more effective utilization of company resources.
• By holding the Contracted position with the drivers and issuing the 1099 settlement remittances under CRS, we establish a legally recognizable position as the Primary General Contractor to justify the independent contractor status and an insurable interest position to extend our insurance program which includes statutory Workers Compensation Insurance.