What is Percentage Pay
by The Crazy Trucker
Percentage pay can be given to company drivers and owner operators/lease operators.
The driver will get a percentage of the revenue that is generated to haul the load.
If a company driver is paying 25% to haul a load that pays $1,000 that driver will get $250.
Here are some things to consider.
Will you be an employee or independent contractor?
That load that pays $1,000... Will it take you 1, 2 or 3 days to complete? (In other word how many miles and stops)
Be very cautious of companies that want to pay you percentage with 1099 as independent contractor. Google them for reviews. (If possible listen to how the owner describes the culture and/or core value of the company)
Know that you will need to pay taxes on that money.
So 25% of a load that takes 2 days For example a 800 mile trip thats only paying $1,000, is not even as much as driving 800 miles at .50 per mile.
However if that $1000 load is only 300 miles. You will come out winning with percentage pay.
Run your numbers to make comparisons.
Remember to take taxes into account.