Money makes the world go round and makes truck driving a career. What a truck driver gets paid is decided by the business they work for, and also by the job that they’re hired to finish. It can be a challenge to know the numerous forms of payment. Therefore, you might be asking yourself, how do truckers get paid?
Common Method: Pay Per Mile
Pay by the mile is the most typical form of pay within the industry. The ways companies buy those miles might vary. The three most common rates are practical mileage, household merchandise (HHG) mileage, and hub mileage.
- HHG miles are referred to as short miles and are measured by postal code.
- Practical mileage is measured from the origin to the destination.
- HOS mileage includes the miles on the truck, hours of service (HOS), and stops or reroutes.
Common Method: Pay Per Hour
Hourly rate drivers are paid for busy work including loading and unloading freight. Pay per hour is common for shorter and local routes. Fed-Ex, UPS, and grocery chains are good examples of pay-per-hour providers.
Hourly pay may vary from entry-level to higher pay rates depending on experience, scheduling, and interaction with customers.
Common Method: Load Sharing
Many owner-operator truck drivers are talking about share of the load pay, where there is a negotiated sharing of either the gross or the internet revenue of products delivered for the company. Particularly attractive when transporting valuable freight or driving short to medium hauls, this model is one of the best paying methods for truckers in the business.
Alternative Method: Per Diem
Per Diem is a non-taxable allowance that hides meals and expenses when on the road. The details of per-diem pay aren’t always provided by the company. Riders should bring the details to the Internal Revenue Service with a day deduction of $59 per working day once bills are filed.
If an organization offers per diem pay, it could appear on every paycheck, but the Internal Revenue Service will not evaluate it for taxes.
(Disclaimer: We are not tax professionals and this information should be taken with caution. Always refer to your accountant for tax advice.)
Fuel and Safety Bonuses
Fuel prices are a necessary evil for any freight company. High fuel prices cause drivers to enhance their mileage per gallon (MPG). Drivers can help their company scale back fuel prices with little enhancements to their average MPG. In turn, the company then shares the savings via a quarterly or annual bonus.
Safe handling and shipping of prevents the loss of time and profit. Firms appreciate the eye to detail needed to accomplish this. It’s common for an organization to supply safe performance bonuses, accruing safe miles, and recognition bonuses for years of safe driving.
Accessorial Pay: Going The Extra Mile
This broad category of pay is used to compensate drivers for services performed beyond hauling and maintaining a load. When a company offers accessorial pay, billable services are invoiced to the customer and passed on to the driver.
When Do Truckers Get Paid?
Most service providers moving freight and goods pay on fiscal periods that work for them but don’t necessarily work for you. Waiting Net-30 to Net-90 days to get paid doesn’t put fuel in your tank or rubber on the road. That’s where factoring comes in. Factoring provides instant funding to keep truckers on the road.
Knowing industry terminology and how company pay structures work goes a long way helping drivers maximize their earnings and negotiate rates. Get in contact with us today and let us give you a better answer for the complex question, “How do truckers get paid?”