JCT

I can't wait to get over there and drive some miles, I'm sick of sitting here with Prime.

 

Yup I believe I passed you on the other side. So it was u leaving all them iron on the hwy. Lol jk. I agree depends on ur luck with the drop and hook. I've been doing produce to oh and back with tyson the past two months so yea my drop and hook chances been slim lol

 

Well hurry up and get on over here. Come join the fun haha.

 

I doubt there are very many of the drivers here at JCT that would disagree about the miles. There are plenty. And they will let you run all you want to run. I just punched in basic cities I've been in since April 1st. As of arriving here at the yard, Microsoft Streets and Trips says I've covered at least 11,719 miles in April. Take note that there are extra side trips in there that doesn't include. Probably a minimum of 200 extra miles. And I still have a 1900 mile trip home. I will be close to 14,000 miles by the time I get home. I can't complain about a 14,000 mile month.

As for my fixed expenses, here they are....
QUALCOMM USAGE $ 11.53
INS/LIABILITY $ 7.62
INS/OCCUPATIONAL ACC $ 36.62
INS/PHYSICAL DAMAGE $ 69.30
DRIVER'S LEGAL/CDL $ 3.98
AMERICAN TRUCK TAX $ 18.00
PERFORMANCE ESCROW $ 25.00
DOWN PAYMENT $ 100.95
LEASE PAYMENT $ 559.47

My maintenance is currently .05/mile. But I'm probably knocking that back up to .10 per mile right now. I'm getting steer tires put on, and from what I understand the Michelins I'm getting are $406 each. (that includes everything) I also got an annual inspection as well as my 90 day inspection. (90 day is required by JCT, annual is the annual DOT inspection) If these tires don't do the trick, I will be in need of my 500,000 mile service my next time on the yard. I can guarantee that will kick my maintenance upside down. It doesn't matter, because I will get the miles to make up for it. I'm not at all worried about it. Delbert is kicking my truck out right now, so off I go. Catch y'all later.

 

Miles, miles, and more miles!!! Get over here!!!! You'll be welcome right into the family!!!!

 

An important distinction and I am glad you made it. Running 5600 miles per week on average is respectable especially in a live load, live unload type system.

I just wonder how many drivers will see the miles you fellas at JCT are running and come to the conclusion they can make more money being a lease operator rather than a company driver.

Its important to mention that as an "independent contractor" (tax classification) you guys not only have to pay Federal, state, and local taxes, but get to pay double tax for Social security and Medicare. The so called "self employment" tax drops an independents earnings by an additional 7.65%

SE tax rate. The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

I am not sure if you guys pay the HHUT of $550.00 per year or if JCT does. Then there is the issue of road use taxes and fuel taxes to be reported and paid. I am not sure if this has been addressed in this thread but it is important to note that some carriers will deduct these "charges" from their lease ops. Of course if you overpaid the fuel taxes for a certain state you "should" get a refund but I have heard of some carriers that do not give the refunds to the lease ops but rather pocket them.

After you factor out the higher tax rates many lease ops will actually earn LESS than a company driver would turning a similar amount of miles.

I think to overcome this discrepancy a lease op will have to turn MORE miles consistently each week.

Many drivers need medical insurance for their families as well and this insurance is usually much higher for Independents than it would be under a company sponsored health care plan.

I think once a lease op actually "owns" their truck outright the pay discrepancy actually switches and favors the independent. Of course it may take 5 years of hard work (normally without any benefits in the process) to pay that truck off.

 

I live in texas so no state tax or local tax haha and I write off most my stuff. For 2008 I got 1500 tax refund. After write off my income was 35000

 

I believe there are 5 or 6 states without an income tax; New Hampshire, Delaware, Florida, Texas, Nevada.... Not sure about the other one.

I know from personal experience that a lease op can make well over 100k a year but after his expenses he will be down below a typical company drivers pay.

For example I earned over $68,000.00 last year and my spouse earned $58,000.00 as a team operation. 126k together. As a solo company driver my best year was over 75k with medical, dental, holiday pay, sick pay, 3 weeks vacation, breakdown pay, etc.

I simply wanted to point out that there is allot to consider before becoming a lease operator. It requires consistent hard work and the ability to manage all your costs and minimize your expenses where you can.

The bad thing about making over 85k is you become subject to the AMT.

Each person will have to decide for themselves if they have the tenacity to stick with a company for at least 5 years (to pay off the lease truck) without the normal "perks" company drivers have.