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Billing, Factoring & Payroll

How truck driver pay is calculated: company drivers vs owner-operators

Short answer. Company drivers are usually paid per mile (for example $0.70–0.80) or a lower percentage of freight (often 23–35%), and the company pays fuel and repairs. Owner-operators and lease operators usually get a high percentage of freight (for example 87%), and their fuel, insurance, ELD, permits and truck lease are deducted from it.

The three types of drivers

Company driverOwner-operatorLease operator
TruckThe company'sThe driver'sLeased through the company
PaidPer mile or % of freight (usually 23–35%)% of freight% of freight
Fuel and repairsCompany paysDriver paysDriver pays (per contract)
DeductionsFewManyMany + weekly truck lease
Tax formUsually W-210991099

Which miles are paid?

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.

Real examples (anonymized)

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.

Typical weekly deductions for owner-operators and lease operators

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.

Negative balance

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.

Questions

What is a driver settlement?

The weekly statement: loads completed, plus credits and reimbursements, minus deductions, equals the check amount.

Are company drivers W-2 or 1099?

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.

Why is a company driver's percentage lower than an owner-operator's?

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.

For carriers and fleet owners

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