Wanabe, but what the heck?!

Discussion in 'Questions From New Drivers' started by Calregon, Dec 8, 2013.

  1. Chinatown

    Chinatown Road Train Member

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    Much depends on the company you work for, their type of freight, assessorial pays. I worked for hazmat/tanker company and made $65K and worked 11 months a year, taking one month off each year for vacation overseas. I was OTR because that's what I like; do not like local or regional. 50% of my miles were deadhead which paid the same as loaded. Worked like this; load on East Coast then drive to West Coast and take 1 hour to unload, then deadhead back to East Coast. Sometimes the trips would be to Las Vegas, Phoenix, Seattle, Los Angeles, etc. Plus paid $14.00 a day for meals, layover pay, pre-trip pay, post-trip pay, unload pay, load pay, detention $12.00 hr. after 1 hour, 15 minutes pay to fuel the truck, etc. Many hazmat/tanker companies do this. Some drivers where I worked make $72K. So, you have to look at the big picture, not just the milage pay. I do know that some LTL drivers make more, but I was happy with what I made plus had job satisfaction. That's one reason I encourage new drivers to try hazmat/tanker right out of CDL school and not do the so-called "paying your dues."
     
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  3. Calregon

    Calregon Light Load Member

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    Dec 8, 2013
    Oregon
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    I thought you had to have a year driving to be a hazmat/tanker driver even if you have the endorsement from school. ( I was told I would have all endorsements when finished) Am I wrong? I hope so! I would be more than happy to do that. Is this a secret? What am I missing? This sounds too good.
     
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  4. Chinatown

    Chinatown Road Train Member

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    No, you can start right out of school. Many new drivers don't even try because they are told thay must pay their dues; but, there are no dues to pay.

    James J. Williams Inc. on the trans-system website hires new CDL graduates from certain schools. Other companies also such as Superior-Carriers, Schneider tanker division and probably more on the Careerbuilder website.
     
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  5. Richter

    Richter Road Train Member

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    Philadelphia Pa
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    Most companies pay cpm OR % pay.

    CPM- Keep in mine, not all CPM is created equal. Some pay the same for all miles, empty or loaded. Some have lower rates or dont pay empty. As you bounce around the contry picking up loads you may have 10-50% "dead head miles". Dead head is when you run empty from a receiver to your next shipper. Also keep in mind, most companies disbatch city to city, not door to door. A run that they pay 50 empty miles and 300 loaded may actually take you 400 mile. These extra miles are called out of route miles(oor). Some companies will penalize you if OOR is to high. (if you take indirect routes)

    % pay- Unlike cpm, you get paid by the load, not the mile. Your company charges the customer $X for the load and you get Y% of that number. Some companies will vary your % based on fuel economy, oor, and other factors. If a 400 mile load pays the company $600 and you get 30% you would make $180. Now if you were paid CPM at .30/mile, that same load would pay 120. In general, you will make more if you find a % company, but your paycheck will varry a lot more. Also if rates go down, so does you pay. If rates go down and your paid CPM, your rates stay the same.

    Fuel saving is probaly a program offered by some company that may give you a bonus for high mpg, all are different.

    Purdiem is a IRS tax benefit for OTR drivers. I forgot the amount, but basicaly you get a set amount to claim for every night your on the road. this is th 59 a day write off you were talking about, but you can only write off 80% of whatever the number is.

    Many companies will only let you idle under and over a certain temp. They want to save fuel. Many companies are starting to install diesel bunk heaters so you can stay warm when ever you want.
     
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  6. Oi!

    Oi! Road Train Member

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    If you make less than a forklift driver you are at the wrong company.
     
  7. mcubstead

    mcubstead Bobtail Member

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    Nov 25, 2013
    Houston,tx
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    Hi, I've only began sizing up companies to apply to for when I actually get my CDL. What I have noticed is there can be a very quick and negative reaction when you start asking questions of the "Recruiter" , and others can be down right helpful. I suspect those that are being helpful with suggestions and concerns about me using a cheap local outfit for CHL are probably sincere and decent to work for.

    Also the statement "Per Diem is a IRS tax benefit for OTR drivers" is a conceptional statement, it is not technically correct. Per Diem's are a deduction class in which there are four categories, and the category greatly determines its effect on you.

    The official types in the IRS employer publications are Audited and Un-Audited.
    of these there are two allowed assignment types by IRS code. Benefit and Deferment.

    Example of benefit: You are offered a job with .30cpm and $25.00 Per Diem. (yes the Per Diem can be less than the IRS max)

    Example of deferment: You are offered a job with .30cpm or with .18cpm with a $59 Per Diem.

    As a benefit a per diem is a wonderful thing, as a deferment its only value is it makes less of your income taxable, but does not give you more money. It also lowers you unemployment eligibility and if you want to buy a house your income will look lower than it actually is.

    Plus Un-audited ones were they just give you the amount, no receipts required, are subject to variable limitations in various state income rules.

    You should read IRS publication 1542. As you really need to understand per diem when reviewing piece labor (yes a per mile job is piece labor) offers.

    Even worse, a lot of so called tax prepares do not properly understand the options of %day away vs over night stay requirements and end up having people over pay taxes on them. I've always advised staff that if the Tax preparer doesn't ask you which zones you were in, they don't know what they are doing, go find another.

    I hate for this to seem like a long rant, but per diems dramatically effect piece labor incomes and taxes, and from reading here, I believe way to many rookies like me ,do screw themselves with the per diem.
     
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  8. Chinatown

    Chinatown Road Train Member

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    If you decide to go with tankers, get the TWIC also. Google will show where the nearest TWIC office is. You will need TWIC for entering seaports, chemical plants, and some military bases. I think James J. Williams recruits from DTS and a few other good schools.
     
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