| Company driver | Owner-operator | Lease operator | |
|---|---|---|---|
| Truck | The company's | The driver's | Leased through the company |
| Paid | Per mile or % of freight (usually 23–35%) | % of freight | % of freight |
| Fuel and repairs | Company pays | Driver pays | Driver pays (per contract) |
| Deductions | Few | Many | Many + weekly truck lease |
| Tax form | Usually W-2 | 1099 | 1099 |
Paid miles are not odometer miles. The contract sets the system: practical miles from a mileage program, short (household goods) miles, or GPS. Write the system on the settlement and half the Friday disputes disappear.
Company driver: 4,731 miles × $0.80 = $3,784.80, minus occupational accident insurance $29.77 = $3,755.03.
Lease operator: freight $12,400 × 87% = $10,788 gross. Minus advances and charged-back repairs ($1,032.17), scheduled deductions such as truck and trailer lease, insurance and ELD ($2,551.17), and fuel ($3,838.40) = $3,366.26. A high gross does not mean a higher take-home.
Truck lease, trailer rent, cargo and bobtail insurance, physical damage, occupational accident, ELD fee, PrePass, state permits, paperwork fee. Under federal Truth-in-Leasing rules (49 CFR 376.12), every deduction must be listed in the contract, and owner-operators must be paid within 15 days of the company receiving the delivery paperwork.
If a lease operator has no loads, fixed deductions keep running. When deductions exceed earnings, the settlement goes negative and the balance carries to the next week. Tell the driver in advance: a predictable negative balance is a conversation, an unexpected one is a conflict.
The weekly statement: loads completed, plus credits and reimbursements, minus deductions, equals the check amount.
Usually W-2 employees, with taxes withheld. Some are paid through their own LLC as 1099 contractors. Classification is the company's legal decision under IRS and state rules.
Because the company pays the truck, fuel, insurance and repairs for a company driver. An owner-operator pays all of those out of their percentage.
We run weekly driver payroll and settlements, with deductions and advances handled correctly, so your drivers get paid right and on time.
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