How to pay car hauler drivers: percentage, per mile or per car

The four common pay methods

Method	How it works	Good for
Percentage of gross	Driver earns a percentage of the load price	Simple, rewards good loads
Percentage of gross less fuel	The percentage applies after broker fees and fuel are taken off	Shares fuel risk, very common with car haulers
Per mile	A fixed amount for each mile (loaded or all miles)	Predictable for drivers, easy to compare jobs
Per car	A fixed amount for each vehicle delivered	Local and regional work with many short loads

Example (sample numbers)

A week with $6,500 of loads, $1,450 of fuel and no broker fees:

• 30% of gross: $6,500 × 30% = $1,950
• 40% of gross less fuel: ($6,500 − $1,450) × 40% = $2,020

Run your own numbers in the driver pay calculator.

How to choose

• Match your loads. Long-haul stinger work fits percentage or per-mile pay; short local runs fit per-car pay.
• Share risk fairly. Gross-less-fuel pay means the driver also benefits from driving efficiently.
• Keep it explainable. A driver should be able to check their statement in two minutes.
• Write it down. Put the pay method, rate and all deductions in a signed agreement.

W-2 or 1099

Whether a driver is an employee (W-2) or an independent contractor (1099) depends on how the work is controlled, not on what you call it. Lease-on owner-operators are usually contractors; company drivers in your trucks are usually employees. Ask your accountant, because misclassification can be expensive.

Additions and deductions

• Additions: detention, layover, truck ordered not used (TONU), extra stops, bonuses, reimbursed tolls and repairs.
• Deductions: cash advances, fuel card charges, log book or ELD fee, escrow, insurance, tickets, damage claims, equipment lease payments.
• COD and COP cash the driver collected and kept is taken off their pay that week. See COD vs COP.

Running weekly settlements

1. Pick a fixed pay week (for example Tuesday to Monday) and a fixed payday.
2. Include every load delivered in that week, with its price, miles and cars.
3. Apply the pay method, then additions and deductions.
4. Send each driver a statement listing every load and every deduction.
5. Mark the settlement paid and keep the record.

Doing this by hand takes hours each week and mistakes cost trust. Dispatch Autopilot’s settlements build each statement from the week’s loads automatically.

Questions