Need help evaluating an offer from a 2 truck company

Discussion in 'Trucker Taxes and Truck Financing' started by ml48603, Jun 29, 2016.

  1. ml48603

    ml48603 Bobtail Member

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    Jun 22, 2012
    Michigan
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    Met a 2 truck company owner using Load1.com in Taylor Michigan as their dispatch/broker/bookkeeper

    This is what he is offering perspective drivers:

    1099 weekly settlement
    Driver is paid 32% of load.
    Driver pays for fuel and anti-gel additives (Midwest and south operation)
    Driver builds up and maintains driver damage escrow of $750 at $75 weekly for first 10 weeks
    Driver pays $30 weekly workers comp insurance

    Considering Diesel is $3.00 per gallon what would be the equivalent cpm rate of a company driver paid W2 in this employment scenario ?

    Other information:
    Load1.com receives 20% of load
    Owner receives 48% of load
    (Explained as Company/Driver Split of 60/40 of the 80% remaining after load1 takes 20% off the top)
     
    Last edited: Jun 29, 2016
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  3. x1Heavy

    x1Heavy Road Train Member

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    1099 means YOU pay your taxes every three months to uncle sam, to your state, and to your local town. And then deductions for your ss etc.

    ANy time I see 1099, I run unless Im a pure owner operator and have to deal with taxes.

    Your 750 escrow will vaporize on a bad OSD situation any time. So that's gone.

    What about Exhaust treatment fluid?

    Your 3.00 a gallon does not compute properly into a equivilant company mileage pay. Best I can think is your fuel burn per hour on your engine... 20 gallones time 3 = 60 dollars an hour divided by 45 mph fleet average. 1.33 a mile in mountain country me thinks.

    You will take your taxes off the top after whoever else gets their money. Truck first, repairs etc second and you, the human last.

    I think you will do well. But be very careful. A bad week with no load can wreck it all.
     
    Puppage Thanks this.
  4. ml48603

    ml48603 Bobtail Member

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    Jun 22, 2012
    Michigan
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    Thanks for the input. BTW, what does OSD stand for?
     
  5. x1Heavy

    x1Heavy Road Train Member

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    OSD. Over, short and Damage.

    Sorry about that. Heck spouse and I still say that to each other choosing freaking cans inside walmart. This dent, OSD.. let's choose another.
     
  6. MM71

    MM71 Heavy Load Member

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    Don't know if I'm reading it correctly. But, paying for fuel out of 32% is just stupid. Paying for whatever fuel additive like lucas is fine, if that is what the policy is. Paying for fuel or DEF is not. As for additive, use it, do not use it, whatever you feel like. As for anti gel, let the #### thing run if you are not paying for fuel.

    32% of dollar a mile freight is .32cpm Dollar fifty is .48cpm and the rare 2 dollar a mile off load board would be .64 with you paying all your own taxes and health care. I would be out on the driver charge back policy of OSD. You are not paying for cargo insurance, the carrier (ie your boss ... the person that should be paying you W2) is.
     
  7. ml48603

    ml48603 Bobtail Member

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    Jun 22, 2012
    Michigan
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    He didn't mention the DEF. The 2012 Volvo does use DEF, that's 50-140 mpg. Varies with fuel consumption. $2.80 a gallon here. Lets say at 100mpg and 2500 miles per week that's $70/week in DEF That's $70 net after tax

    In this 1099 situation does the fuel, DEF, anti-gel become a business cost I can deduct? Or is this not possible for this 1099 situation being discussed in this thread
     
  8. x1Heavy

    x1Heavy Road Train Member

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    Ugh. Minefield for me.

    Anything consumed in a business down to paperclips can be deducted.

    70 a week for DEF? omg. That's good money.

    Anti gel wont save you if you shut down long enough in -20 or colder. My defense is to hot fuel, run engine because it equaled life in temps approaching -60 And we have gelled fuel before (That is a story I don't mind telling too much...)

    We had the volvo, a 89 ES Sleeper cab with a 350 I think it was a cummins. serviced at the shop requiring the fuel to be disconnected. They opened one tank, failed to open the other which proceeded to Gel that week. 2 days later coming up to Roanoke the engine drained the one tank that was open, sucked air and then quit on I-81 a mile north of the Fancy Gap Road literally 15 minutes after a full fueling that had us discussing why one tank was revealed to be full at the Petro. It was winter. Not too cold that week 10 above to 15 below constantly. It gelled.

    We dumped it. A tank load of fuel. Sheesh. I think the ghosts of the dead from that bk outfit are still yelling to this day, remember Deseil was considered expensive at 1.10 then.
     
  9. truckthatpassesyouby

    truckthatpassesyouby Road Train Member

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    Don't do it man. You'll be sitting at the truck stop getting his call to roll empty 200 miles away just to earn 32% of $1200 minus your 200 miles spent to pick up, the distance(fuel, tolls,scale tickets) and time for the trip, minus your dues, minus your taxes due =dumb slave

    FYI, def is like 15 a week
     
    x1Heavy Thanks this.
  10. x1Heavy

    x1Heavy Road Train Member

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    Ok appreciate the update on DEF. Shows what a old dog like me can learn.
     
  11. truckthatpassesyouby

    truckthatpassesyouby Road Train Member

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    He'll be smoking cigarettes for breakfast, eating off the dollar menu for lunch, and drinking coffee for bed. Lol
     
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