From what you have stated in your question the company pays your husband for his driving service's only. They have paid all other fees and expenses related to the delivery of the loads. As a self-employed driver your husband can still deduct from his income any expenses related to his driving that are not covered by the company. Your husband is not paying any of the fees that the company pays so he cannot deduct then as expenses. Actually the company is making your husbands record keeping easier to maintain. If your husband had to pay all the fees that are currently being paid by the company, he would have to pay the expenses out of pocket and keep accurate records of all these expenses to deduct on his tax return. Yes, his paycheck would be larger, by the amount of expenses he paid, but the bottom line would be the same after he deducts the expenses. He will net the same amount for each load. The procedure the company is using is not in conflict with the reporting requirements for Form 1099-MISC.
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