Driver profit split question

For what's it's worth I guess you could pay him a % of the gross or line haul if you have contract freight with dedicated shippers. W-2 of course. I wouldn't do 50/50 with my driver.

 

someone may feel short on pay?

without the option to buy, as a company driver, I've seen a percentage. say 26% 28% per load on short hauls, this amount seems shy to me.

 

Downside is what's the 50/50 after? Are you talking after fixed expenses or all expenses. Even then if you have truck and trailer payments then that would cut into their cut of the 50/50. Also the thing about drivers is morale. He's automatically think you're gonna short change him so if you pay him on a structured bases with a percentage he'll be able to count his money and not really worry about you bending him over.

 

Not sure what this have to do with this guy thread smh

 

W-2 refers to the payroll syste!m where the employer deducts taxes etc, and submits the withheld funds to the government. Un3mployment, workman's comp etc. A 1099 setup is where the dishonest employer just pays like the employee is a contractor and the employee is responsible for both half's of social security etc, and usually ends up where the tax due for the previous year is not paid, landing the employee in debt. I hope you do the right thing and with old taxes correctly as when the regulators catch up with the employer, fines and penalties are steep and serious money.

 

50/50 sounds good for you but not for the driver, trying to always split what the truck makes is not really fair unless your hauling top notch freight.
Hire a driver and pay him enough he will stay with you. Drivers that are smart only stay around for 1 or 2 bad pay days, you can't afford to change drivers every few weeks.
You have to have a good loyal driver to have a chance at making money.
Ask yourself why a driver would choose you over a company with first class equipment, great pay and bennies.
I don't know what you are planning on buying but if your looking at ragged out fleet trucks good luck on finding quality drivers.
If you don't drive you better have a plan in place to retrieve your abandoned trucks, drivers quit for any reason, most of the time it is something totally stupid but your left to secure you equipment .

 

As an employee the driver should not take the risk of having a bad week where their share of the 50/50 profit split would be low, rather they should be paid a fair wage to compensate them for everything they do. You have a bad week with a breakdown that is not the drivers fault, they should still earn an average weeks pay. I haul cars, as a company we are typically paid by the unit and pay our drivers a percentage of the load, but we also have two drivers on weekly salary since they would not make a good living on commission doing short haul local work.

First, you need to figure out within your business plan what you can afford for labor, typically labor costs are the second or third highest expense in operating a trucking company, I spend about 45% of my gross between salary, workers comp, and payroll taxes just to have drivers in my trucks. Second, you need to figure what the market rate is for where you will want your drivers based, meaning drivers that live in the southeast US typically make less than the drivers in the northeast. Figure out what is normal and then pay about 15% above market to help attract a good driver. This will vary greatly depending on your freight, a car haul driver expects a 6 figure salary yearly where as a dry van driver would be real happy with $70,000.

Lastly, I will caution you, no matter how much money, fringe benefits, great equipment and such you throw at them, employees will always want more, and drivers tend to be nomadic by nature so expect turnover higher than in most industries.