The common ways to pay
| Pay | How it works | Watch for |
|---|---|---|
| By the mile | Cents a mile, all miles or loaded only | Which miles count, and whose miles: the rate con, routing software or the odometer |
| Percentage | A share of the load's revenue | Whether the fuel surcharge and extras count |
| By the hour or day | Common on local and regional work | Waiting time and overtime |
| By the load | A flat amount per load | Long waits on a short load |
Extra pay is often added on top: stop pay after the first stop, a share of detention, layover pay and bonuses.
Deductions and reimbursements
A company driver on a W-2 has taxes and benefits taken out. A contractor or a leased owner operator on a 1099 can have agreed deductions: fuel on the company card, an advance, escrow, a truck payment or insurance. Receipts the driver paid out of pocket come back on the statement.
Leased owner operators: the federal rules
When an owner operator is leased onto a carrier, the truth in leasing rules (49 CFR Part 376) apply. The written lease must say how he is paid and which deductions can be taken. When his pay is a percentage of the load, the carrier must give him a copy of the rated freight bill, and settlement is due within 15 days after he turns in the paperwork the lease asks for.
What goes on a weekly statement
- Each load with its date, lane, miles or revenue and the pay for it.
- Extra pay: stops, detention, layovers, bonuses.
- Reimbursements for receipts he paid.
- Each deduction, and the balance of any escrow or advance.
- The total, the pay period and the pay date.
Making it from the loads you already entered, instead of retyping them, is where most mistakes disappear. See dispatch software for small fleets.