How to pay my driver (question for small fleet owner of 2-5 trucks)

I have always paid percentage and don't usually pay detention unless I collect from the shipper or broker, but that is usually not a problem with most of those for whom I haul. It can happen occasionally, but if it does and they don't pay detention, I usually don't haul for them again. If the truck breaks down, I have paid detention and have also put the driver in a motel for a few days if repairs cannot be made fairly quickly. You may find that some drivers prefer being paid mileage, go figure. Even if you can show a driver how they can make more on percentage, some will still prefer mileage. I think paying percentage is the fairest way to work or compensate drivers.

 

if I were a company driver again I'd totally want to be paid %

That whole scam per mile is BS.

 

Generally around 27%

 

As long as you provide a copy of the freight bills to the driver so they can make sure they were indeed paid 26% of the line haul they shouldn't have a problem. Its the unknown of not knowing if they are being paid correctly or not that might makes some hesitant to drive for percentage.

 

Pay him an amount you can live with. haven't had to pay it in a while but IIRC we paid $13/hr after 1 hr. Some loads you will collect $75/hr after 2, some you will collect $50/hr after 1 and some you will collect nothing. Hopefully it all averages out.

 

If you are paying him a percentage of the load, then there is no need to pay him detention, unless you collect detention from the broker, then pay him his percentage of what you collect in detention along with his percentage of the load. I am not in refer, I haul cars, but in my operation I pay the driver 25-30% of the gross, depending on their experience and damage claims. If a driver has a poor history of damages or late/no show for appointments then the are paid at the lower percentage until their performance improves, if they are doing good then they get increases up to the cap of 30%. We don't have detention in our industry but if we did then I would pay my drivers their commission percentage, that way it is fair to both of us. You should not pay percentage of the load and hourly, although you could give your driver an hourly or daily rate for breakdowns and other unforeseen situations beyond his control, detention is an expected part of the industry, especially with refer or food warehouses.

 

what ever you pay your driver you must do full payroll,,deduct taxes and send the taxes as well as social security deducted to the IRS, You must also pay a medicare tax and workers compensation,,hiring the driver as a 1099 contract employee 99% of the time is not legal and if the irs catches you you will pay a big penalty and for cot having workmans comp insurance on the driver can get you criminal penalties in many states,,if you have employees do it right,