Which way do you like getting paid as a driver?

[Bruno]

The debate has been raised by many drivers and owner operators over the years in regards to what is the best way to pay a sub-contractor who drives for an owner? Back in 1995 most drivers would get 50% of the truck and they paid the fuel and tolls. When fuel started to go up so did the percentage to 60% and the drivers paid fuel and tolls. Now drivers are getting 60% plus 100% of the FSC. I feel that if you get 100% of the FSC then you should pay the road taxes as the owners have no control where or how you fuel if the driver is buying the fuel.

Some drivers like the 40/60 percent where the owner pays the fuel. We have it set up in our lease that the contractor pays us 60% of the line-haul and 100% of the FSC. We agree to pay all fuel, tolls, and road taxes. When doing it this way the a driver should be charged a equipment fee of some kind to be legal with the IRS so they are contractors not employees.

 

[moose]

It's been almost a week without a recruiting ad LoL

i have news for you. the IRS can care less about the way your contract works.
your problem is with the ones driving those trucks.
are they responsible for SSC, their own pensions, medicare, ext. ???
when collecting time comes, many years from now, they (or their layers) WILL go after your LLC.

 

[beachbum]

I have to agree with Moose on this one.

The IRS has been going after companies for just this thing. To see if the driver is a employee or a independent contractor see this IRS site

Independent Contractor (Self-Employed) or Employee?.

 

[xiggi]

IMHO your 50 - 50 is flawed. In that type of split it should be.

Truck gross minus fuel and tolls. That net is what should be split between the two parties. Of course in the end everyone must find the deal that works best for them.

 

[iceroadtrucker]

Some drivers like the 40/60 percent where the owner pays the fuel. We have it set up in our lease that the contractor pays us 60% of the line-haul and 100% of the FSC. We agree to pay all fuel, tolls, and road taxes. When doing it this way the a driver should be charged a equipment fee of some kind to be legal with the IRS so they are contractors not employees.[/QUOTE]
Dave I dont think the IRS gives two sheets about equipment fee. 60% you 40% driver is a fair deal. I take it the 40% is off run pay only and dont include dead head. Some owners pay dead head and a few that dont. There is one that pays a salery each week and meals and flys you to the truck and home at no cost to you as well as pays you half your salery for the week u are off. U get a w-2 vice a 1099. interesting. His drivers got it made. Getting back to the question 40% of run Pay to the drivers is fine. Im not gona pay to drive some ones truck.

 

[nightcreacher]

Back in the days of Roberts express,when they would give you an advance of 50%,and fuel was 75cpg,I paid my teams 50/50.As the price of fuel went crazy,THey got 60/40 plus fsc if there was any.Now with the cost of fuel the as high as it is now,and the rates of line haul not going up as they should have,in a Tractor that usually only gets about 6 mpg,the split would need to be 65/35 plus fsc.I have a friend that pays his D unit teams 60/40 plus they get all the dead head pay if it is offered

 

[nightcreacher]

Kevin,if your getting 60%,and buying the fuel,your not paying to drive some one elses truck,in fact if you watch what your doing,you can make more than what the 40% will get you.If the guy you work for ,tells you what to do,your no longer contract labor,and you can make him pay your taxes

 

[Bruno]

IMHO your 50 - 50 is flawed. In that type of split it should be.

Truck gross minus fuel and tolls. That net is what should be split between the two parties. Of course in the end everyone must find the deal that works best for them.

Xiggi I didn't say it was mine, as I never have never paid our contractors that way. That was how it was when I started. Also when I started most owners started a co driver out between 13 to 15 percent. I started mine out at 20% from the get go and was told I was crazy. If i wouldn't work for that why would I ask someone else too.

 

[Bruno]

It's been almost a week without a recruiting ad LoL

i have news for you. the IRS can care less about the way your contract works.
your problem is with the ones driving those trucks.
are they responsible for SSC, their own pensions, medicare, ext. ???
when collecting time comes, many years from now, they (or their layers) WILL go after your LLC.

Moose this is not a recruiting add as you put it. Just talking about how people like getting paid. I think your totally wrong on your statement on in regards to the IRS, because a good tax lawyer can write up a contract that keeps people as a contractor. We have offered our drivers the chance to become employees and everyone of them has said no.

 

[jjoerger]

When we drove for a fleet owner we got 60% of the gross pay including FSC, tolls, etc. We paid for fuel only. He paid for work accident insurance, tolls, fuel taxes, etc. I think it worked out better for us than for him.

 

[Bruno]

When we drove for a fleet owner we got 60% of the gross pay including FSC, tolls, etc. We paid for fuel only. He paid for work accident insurance, tolls, fuel taxes, etc. I think it worked out better for us than for him.

A least your being honest. Thank you.