Broker Question - Splitting broker payment between two parties?

Why does he want the broker to pay you instead of him? If your normal way of doing business is for the carrier to pay a percentage and he doesn't want to pay you then it may be better to walk away. I think most brokers would question the ethics of spliting the money.

 

Typically they won't split the payments. They are going to remit to whomever sends the invoice which should be the carrier with whom they have the rate confirmation. Walk away from this arrangement, too much other business out there to be had.

 

Nope, sounds hinky.

 

Hey guy's I will chime in on this! Does it sound hinky? Yes it does... When I bill a customer that I haul for, and they pay me; there are no "split payment's" so to speak. If you are not a broker; then how does the driver pay you and who does the billing? Are you working "under" a Broker number?
You should stick to your company policies. And if that doesnt work for the driver; then there's more business out there I guess! As G-man stated "most" Broker's would look at it kinda suspiciously. I know I would! The normal thing for "3rd party dispatchers" is that you would take a certain % or a flat fee that is negotiated between you and the carrier. Hope this help's!

 

Probably because he thinks he might be able to get away with not having to add that "extra" to his taxable income. Although he could deduct what he pays you from his taxes, he wouldn't have to pay taxes on it PERIOD if it's never ADDED to his income.

I don't know if he'd get away with that anyways, the IRS might notice something off, but I'd stick with your own business strategy of charging by % of linehaul.

BTW, do you mind mentioning what % you do charge? Do you think "private dispatching service" might better describe what you do?

 

I betting the O/O just can't be bothered with the additional paperwork. If the agent sends an invoice and the O/O doesn't get home then the agent may not get paid in a timely manner. He may be one of those guys that works on a "cash" basis.

 

Most would view that as double brokering and would just want him to call them directly. He needs to do it your way I think.