That $80 per diem might work for Canadian drivers. You try that here, you'd be owing the IRS.
Quote: You don't need to pay a driver $0.40/mile plus $80/per diem.
I've decided that this is how most small fleet guys make it...find cheap drivers. It's also why so many O/O's would be better off as company drivers. $.40/mile, probably as a contractor with minimal bennies, if any...I just don't see the upside.
I think you're missing the point on the 40 cpm plus $80 per diem. The per diem comes out of the 40 cpm.
The rate PLUS the per diem equals 40 cpm. The rate has to fluctuate, because the miles per day fluctuates.
In that case it might work for you. So you are attempting to have the driver a minimum rate of $80/day using per diem? In any case he will at least make his per diem regardless of how many miles he drives? He will make $0.40/mile with a minimum of $80/day? If he makes more then the per diem is deducted and the balance is paid as wages if I understand correctly.
In that case it might work for you. So you are attempting to have the driver a minimum rate of $80/day using per diem? In any case he will at least make his per diem regardless of how many miles he drives? He will make $0.40/mile with a minimum of $80/day? If he makes more then the per diem is deducted and the balance is paid as wages if I understand correctly.
Yes you understand correctly. Unless he's doing less then 200 miles a day, I don't see it as a problem.
It's just a way to pay him tax free, as opposed to him paying withholding tax throughout the year, and getting thousands back at the end of the year.
It doesn't make any difference how you compensate your drivers. Some will be pedal to the metal all the time. Others will be more conscientious and slow it down.
I've worked with some guys that paid their drivers 50% after fuel,that might make them slow down if they thought about it.
I considered something along those lines, mike. I know a woman who owns a few trucks and that is how she pays her drivers. She told me that she has made more money doing it that way than any other. Apparently, the drivers seem to like it as well. She takes care of the truck payments out of her money and they split everything else.
Yikes.. I've already bite and lost on that as a Driver. 2 months running watching fuel cost, not running the motor unless I really had to, my pay checks did not come up to what I was getting on Disability. But then again I was not the fault of that one, HIGH head head miles, Cheap Frieght, they did not want truck to sit and wait for better paying freight. Last load I went to pick up, was going to pay them 400.00 I had to deadhead 100 miles and the load was going to go another 273 miles. I was on near empty before I left to pick up the load. After running my program to get miles and amount fuel needed, I put in 500.00 fuel. Turned out the load would not fit in the trailer, needed a 53', I had a 48'
That $80 per diem might work for Canadian drivers. You try that here, you'd be owing the IRS.
Quote: You don't need to pay a driver $0.40/mile plus $80/per diem.
I've decided that this is how most small fleet guys make it...find cheap drivers. It's also why so many O/O's would be better off as company drivers. $.40/mile, probably as a contractor with minimal bennies, if any...I just don't see the upside.
I on the other hand have decided that small carriers make it by treating their drivers as people. Getting them home with their families. Not making them stay out 26 days a month.
Maybe I'm not remembering correctly, but I thought your driver compensation numbers were fairly high. Don't you also offer full bennies and classify your guys as employees, not contractors? If so, your $.40/mile is significantly different than the $.40/mile being paid on a 1099.
If I'm mistaken and you really are paying your guys the equivalent of $.30/mile, what can I say? We truck drivers have never been accused of being the brightest bulbs.