A driver settlement is one subtraction: what the driver earned for the period, minus what the driver owes. Everything that goes wrong is a disagreement about one of those two numbers. Here is the formula for both pay types, a worked example you can check with a calculator, and the federal rules that limit what you can deduct from an owner-operator.
Company drivers and owner-operators use the same shape of calculation. What differs is which costs are passed to the driver.
| Company driver | Owner-operator | |
|---|---|---|
| Earnings | Flat amount per delivered load, rate per mile, or a percentage of line-haul | Percentage of gross revenue set in the lease |
| Deductions | Usually only cash advances | Fuel, insurance, trailer rental, factoring, dispatch fee, advances, escrow, any other lease-listed item |
| Added back | Approved bonuses | Accessorials the broker paid (detention, layover, lumper reimbursement) |
| Net pay | Earnings − deductions + additions | Gross × percentage − deductions + accessorials |
These numbers are illustrative. A carrier pays an owner-operator 88% of gross, and the week had five delivered loads totaling $6,200 in line-haul.
| Line | Amount |
|---|---|
| Gross line-haul revenue | $6,200.00 |
| Owner-operator share (88%) | $5,456.00 |
| Fuel | −$1,180.00 |
| Insurance (weekly) | −$215.00 |
| Trailer rental | −$150.00 |
| Cash advance | −$300.00 |
| Total deductions | −$1,845.00 |
| Detention paid by the broker | +$150.00 |
| Net pay | $3,761.00 |
Check: $5,456.00 − $1,845.00 = $3,611.00, and $3,611.00 + $150.00 = $3,761.00.
Which percentage applies is the first place settlements go wrong. Some leases pay a percentage of line-haul only, and some pay it on line-haul plus fuel surcharge. Detention is often paid in full as a pass-through instead of being multiplied by the percentage. Whichever you use, the lease has to say so.
A company driver is paid a flat $350 per delivered load. The week had five delivered loads and one $200 cash advance.
5 loads × $350 = $1,750.00. Minus the $200.00 advance, net pay is $1,550.00. The carrier absorbs fuel, insurance and repairs, so none of them appear on the driver's settlement.
If the driver is paid per mile instead, write down which miles count. Loaded miles only and loaded-plus-deadhead miles give different pay for the same week.
If you lease owner-operators, the federal Truth-in-Leasing regulation, 49 CFR 376.12, limits how settlements work. In plain language, three of its paragraphs matter most when you build a settlement:
This is a plain-language summary, not legal advice. Read the current text of 49 CFR 376.12 and have a transportation attorney review your lease before you change how you deduct anything.
The practical rule that follows: if a deduction is not listed in the lease, do not take it, and keep the paperwork behind every charge you do take.
ReadyTMS picks the pay model from the driver's type. Owner-operators are calculated as a revenue pass-through with factoring, dispatch fees and truck expenses as deductions. Company drivers are paid a flat amount per delivered load, with only advances taken off.
The PDF does not replace the rated freight bill. If your lease promises the freight bill at settlement, send it with the PDF. For how loads and paperwork get into the system in the first place, see AI rate confirmation software and POD audit software.
Multiply gross revenue by the percentage in the lease, subtract every deduction the lease allows (fuel, insurance, trailer rental, factoring, dispatch, advances), then add back accessorials such as detention that the broker paid. The result is net pay.
Multiply the driver's agreed rate by what it is paid on: a flat amount per delivered load, a rate per mile, or a percentage of line-haul revenue. Then subtract only what the driver owes, usually cash advances. A company driver's fuel, insurance and repairs are normally the carrier's cost.
Only items the written lease clearly lists, with the method used to calculate each one. Federal rule 49 CFR 376.12(h) also says the owner-operator is entitled to copies of the documents needed to check the validity of a charge. Confirm the details of your own lease with a transportation attorney.
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