Usxpress new driver

I made right at $49k my first year. Just driving and bumping docks, home on weekends

 

Power_Sb. QUOTE>>: The recruiter told me I would make .38cpm starting ... but instead I got .33cpm.

Obviously you didn't get this in writing did you? Recruiters are not your friend - ever.

 

That is excellent! What company do ypu drive for? I am ready to give them a call.

 

Well,I am on 1099 bro and I also HAVE to make back trip deliveries eg.on Tuesday I will have to come only to make a 13 miles delivery (because I turned down Monday trip which I regret now) which I don't get paid for.This really pisses me off!On the other hand this week I made total of 11 deliveries that means $450 and left Chicago twice $100 so $550 plus miles this week.

 

Total pay?

 

$0.47 a mile on a 1099....have to pay your own taxes on that income SMH

 

Should be some $2500 but I still have some 600 miles to home.Decent money,far less than my best week ever though.Not easy being an immigrant driving for peanuts.

 

60-90 days out and you think that's ok? Out three weeks and that's okay? 3596 in a 7 day period in a governed truck? Find another gig as that is NOT a good deal.

 

Pretty much living on the road being out that long. I don't think he is getting a good deal. However if he needs to stay out longer I can see that also.

 

There is NOTHING wrong with being paid by 1099 as long as you know how to do your own taxes or have an account who does. All self employed people have to figure out their own taxes. In fact having your taxes withheld out of your pay is a problem as you do not really get to see just how much of your money the Government is taking. You tend to focus on take home pay and miss the other stuff. If everyone had to write a check to the IRS instead of waiting for the IRS to write you one, there would not be a Socialist running for President.

45 cents per mile paid by W2 is 48.375 cents per mile paid by 1099. That is how to compare the two. Then you have to add in the cost of benefits. Those vary from company to company. But generally a company paying by W2 will have some type of insurance where the 1099 driver will have to pay the full amount. Most benefit packages are worth an extra 15% to your real wage. So in my Opinion a company drivers minimum except able rate should be 45 cents per mile plus benefits and a 1099 driver should drive for no less then 55 cents per mile. Those two rates are equal.

A lease on driver who is not taking an economic risk, i.e. one who can walk away at anytime should be making an extra 8% above the company 1099 driver. Which is 60 cents per mile. (I am rounding on these cents).
A lease on driver who is taking a risk should make 17% above that or 70 cents per mile. Now that is profit not gross. An Owner Operator who is an LLC should pay himself as a driver based on the Lease on Driver taking a risk rate of 70 cents per mile. The LLC should be making cost of operation plus 17% with a 5 year payout rate.

So, if you equipment was 150,000 for the truck, 73,000 for the Reefer, 125,000 miles per year over 5 years is 625,000 miles. @ 6 mpg @ $3.00 per gallon or $312,500 for fuel, $100,000 insurance over 5 years, 25,000 tires, 25,000 escrow, Reefer fuel 25 gallons per day 1500 days @2.50 equals $93,750 in reefer fuel. Total cost for 5 years is $779,250. A 17% payout is the very smallest investment grade return. That works out to a monthly gross needed of $19.337. Or $1.86 per mile on all miles. Loaded or empty. If you get better MPG or less cost that is profit.