Percentage vs. Mileage for Co. Drivers

Only MY opinion but Id go with miles, PGT and TMC I know do percent. percent is based on what the company makes for the load, or say they make. When it comes to money I dont trust no one. Whose to say theyre not making more for that load and not paying for it? Either way I wish ya the best

 

A lot of people worry about getting cheated on percentage pay. I worked as an O/O on percentage for 14 years. As long as I was making good money, I didn't worry about what the company was making.

I am working as a company driver now for a company that has an odd pay system. They don't pay extra for some things that take extra time. Some of the drivers will grumble about it some, but the overall pay system is very good. I do what they say and at the end of the week I have a really good paycheck, so I don't worry about how they figure the pay or what other drivers are doing.

 

The first question you need to ask is, "Am I an employee or contractor?" Often, but not always, percentage is paid to contractors. If you are a contractor, you will pay your own income taxes (Federal & State). Also there are usually no benefits. Usually you must furnish Workmen's Comp or get a waiver. In addition, you will pay Social Security and Medicare at 13.30% instead of the 5.65% employees share that an employee pays while the employer pays 7.65%. You will need to save money from your pay to make quarterly tax payments.

Now for the other issues that you should consider, without regard to the contractor issue. Is your pay based on the gross or net of the load? If a load pays $1000 and you get 20% of gross, you will receive $200 (1000 * .20 = 200). If a load pays $1000 and you get 40% of net, with expenses of 55%, you will get $180 (1000 * .55 = 550 and 1000 - 550 = 450 and 450 * .40 = 180).

There is nothing wrong with percentage pay if you understand it. It can be an incentive that helps a driver earn himself and the owner more. If it is net, it offers an incentive to increase fuel mileage and cut other expenses. In the hands of a good driver it can lead to bigger paychecks.

There are many variables and if you don't understand them all, IMHO you should stay away. On a final note, in the hands of a fraudulent owner or company it can be a driver's worst nightmare. The numbers, especially on a net percentage, can be manipulated.

 

Niether one, HOURLY pay, is the ONLY WAY. Get in the truck, turn key, pay starts, Turn key off, get out, Pay stops, and I go home.

 

It depends who you work for and what you haul. If you work for a company that hauls pretty much everything and searches for their loads, then I would go by the mile. Because you don't know how much cheap freight you'll be hauling.

A situation like I had was somewhat dedicated running carpet from Dalton, GA to Phoenix/LA and produce back to AL/GA, I knew about what all the loads paid and they paid good. A setup like that, you'll do much better with percentage.

 

I do mostly oversize loads and for me percentage is the only way to go. I am at .79 per mile for the year on odometer miles.

 

79. per mile? And you own you own truck?

 

No, I am a company driver. Some of the bigger stuff gets pretty lucrative. But, on the other hand it isnt a home every night and every weekend job either. If I am not going to be home I am at least going to make some money while I am out.