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Question about percentage pay.

Discussion in 'Questions From New Drivers' started by BROKENSPROKET, Oct 3, 2014.

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  1. Oct 3, 2014 #1
    BROKENSPROKET

    BROKENSPROKET Medium Load Member

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    Jan 22, 2011
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    Is the standard that your percentage comes off the top which is the gross freight pay. Or can the subtract fuel then cut you percentage from the remaining(net) freight pay.

    Right now my carrier takes 25 % off the top for fuel, the I get my percentage from the remaining 75%.

    20% of 75% IS 15% of 100%. That is what I am making. How does that sound?
     
    BROKENSPROKET, Oct 3, 2014
    BROKENSPROKET, Oct 3, 2014
    #1
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  3. Oct 3, 2014 #2
    ironpony

    ironpony Road Train Member

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    Huh???

    What standard? There is no standard... it's what ever deal you can get with your carrier- you did get it in writing, yes? BTW, are you company, lease or O/O?
     
    ironpony, Oct 3, 2014
    ironpony, Oct 3, 2014
    #2
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  4. Oct 3, 2014 #3
    rbrtwbstr

    rbrtwbstr Road Train Member

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    Are you paying for fuel? If not, why would you be entitled to the fuel surcharge money??? I work on percentage, I do not pay for fuel, and my pay is based off the rate without the fuel surcharge.
     
    rbrtwbstr, Oct 3, 2014
    rbrtwbstr, Oct 3, 2014
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    G/MAN Thanks this.
  5. Oct 3, 2014 #4
    BROKENSPROKET

    BROKENSPROKET Medium Load Member

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    Jan 22, 2011
    Wisconsin
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    I am company. I do not pay for anything either.

    I just think its fishy that say that I get 20%. That 20% comes from the remaining 75% after 25% is deducted to go into then fuel account. In reality, I am being paid 15% of the.freight rate

    From what understand, drivers that get paid percentage, that percentage comes from the freight rate. Not some number after some other deduction is made.
     
    BROKENSPROKET, Oct 3, 2014
    BROKENSPROKET, Oct 3, 2014
    #4
  7. Oct 3, 2014 #5
    STexan

    STexan Road Train Member

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    Oct 3, 2011
    Longview, TX
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    There is the base "rate" and then a separate "fuel surcharge" is added to this when the shipper is billed. Percentage drivers are only paid on the base rate. Nothing wrong with this. If you think you're entitled to 30% of $3.00-$4.00 fuel costs (over the $1.00/gal that is typically built in to the rate), you're sorely mistaken.
     
    STexan, Oct 3, 2014
    STexan, Oct 3, 2014
    #5
    G/MAN and flood Thank this.
  8. Oct 3, 2014 #6
    ironpony

    ironpony Road Train Member

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    Agreed with S Texan. You aren't responsible for the fuel bill directly, so why do you think you're entitled to any of the fuel surcharge? Fuel surcharge is a way of accounting for the volatility of fuel prices without constantly renegotiating a contract. Your deal is for 20% of the linehaul revenue.

    OTOH... if you do your best to run the fuel bill up with your right foot, you could be running yourself right out of a job.
     
    ironpony, Oct 3, 2014
    ironpony, Oct 3, 2014
    #6
  9. Oct 3, 2014 #7
    HotH2o

    HotH2o Road Train Member

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    If you think it's fishy then go work somewhere else. You have that right. The company I work for pays 25% of net. I have no complaints. Good wage, his fuel, his maintenance and insurance costs.
     
    HotH2o, Oct 3, 2014
    HotH2o, Oct 3, 2014
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  10. Oct 3, 2014 #8
    BROKENSPROKET

    BROKENSPROKET Medium Load Member

    675
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    Jan 22, 2011
    Wisconsin
    0
    So after fuel, maintenance, repairs, insurance, property tax/lease, ulitities, payroll (accounting and dispatch,etc) and any other overhead expense, you get 25% over what's left? You did say 25% of net.
     
    BROKENSPROKET, Oct 3, 2014
    BROKENSPROKET, Oct 3, 2014
    #8
  11. Oct 3, 2014 #9
    BROKENSPROKET

    BROKENSPROKET Medium Load Member

    675
    172
    Jan 22, 2011
    Wisconsin
    0
    I have never seen a base rate or fuel surcharge. Only thing I have seen on paper work sent to me was 'flat rate' and the company takes the fuel expense out of that at 25%.

    I NEVER implied I was entitled to a fuel surcharge or whatever. I was only questioning the way they spin the math. If 25% is taken out prior to calculating my pay of 20%, let's say a load pays $1000. They take $250 off for fuel which is 25%. Then my 20% is taken out of the remaining $750, which would be $150, which is exactly 15% of the flat freight rate.

    Whether its 20% of 75% OR 15% of 100%, the dollar amount is the same. So, why spin it to make it sound like I am making more.
     
    BROKENSPROKET, Oct 3, 2014
    BROKENSPROKET, Oct 3, 2014
    #9
  12. Oct 3, 2014 #10
    rbrtwbstr

    rbrtwbstr Road Train Member

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    Well, I see what you're saying, but here's something to consider. Perhaps the account does not include a fuel surcharge. Sol let's say load pays $1000 with a 10% fsc. The company is getting $1100 to move the load. But 100 is for fuel expense, which you as a driver, do not buy. So you're at 1000, and your percentage comes off that number.

    But the next customer pays a flat rate with no fsc. They may pay 1100 for their load. Your company still needs fuel, so they might take 25% off the top just for fuel. So now the load is down to 825, and your cut is based off that number. Still fair in my mind, just lower pay to the driver.

    The company I'm with pays percentage. Some of our accounts have no fsc, some have a 5% fsc. On loads with no fsc, they take 15% off the rate for fuel.
     
    rbrtwbstr, Oct 3, 2014
    rbrtwbstr, Oct 3, 2014
    #10
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