![]() Which method should you choose? It depends on your situation. It’s more consistent than the percentage-of-load-pay method, but you may miss out on some potentially large paydays. You get paid a set amount for the miles you drive, regardless of the load’s value. But a low-value load can hit you hard - sometimes, you don’t break even on those. So if you get a high-paying or valuable load, your pay can be excellent. Drivers take between 25-85% of the load revenue. Earning consistency is the biggest difference between the two. There are two main ways: a percentage of the load or mileage. The more you let a company handle by working for them, the less control you have. The upshot: The more responsibility you take on, the higher your earning potential. After initial startup costs, though, owner-operators have much higher earning potential. You control your schedule, time at home, the routes you take, and the type of truck you drive. Owner-operators have to buy or lease and maintain their trucks, manage their own schedules, and keep track of their own taxes and business expenses. You also don’t have the startup costs of being a business owner. There’s no overhead, so you don’t have to worry about owning a truck or paying employees, and taxes automatically come out of your check. The biggest advantage of being a company driver is that employers handle everything for you. The more specialized and experienced a driver is, the more they will make as a company driver. Taxes are based on the tax bracket they’re in. But that’s before expenses and taxes - net is what’s left after those.Įxpenses are fixed and covered for most company drivers. The gross average owner-operator salary is three times what a company driver makes. There are two ways to look at salary: gross and net. So why would you want to be an owner-operator? Let’s break down the numbers. We’ll explain why, but the most important thing to remember is that you need to maximize income (AKA revenue) and minimize expenses to increase your net take-home pay.Īlso important: owner-operators don’t have health insurance benefits through their employer, so they rely on insurance through a spouse or partner or purchase their own insurance. ![]() ![]() Many owner-operators will only take home $45,000 to $80,000 a year, with a much lower average for the first year. You have to dig much deeper to figure out an accurate owner-operator average salary - what you’d net each week and annually after paying those expenses. While that may sound like a lot of money, a word of caution: While that’s the average base salary for an owner-operator, they often take home much less than that when you factor in expenses.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |