Per-Mile
Company drivers are paid a cents-per-mile rate for verified loaded, empty, practical, or hub miles. BOF ties mileage to TMS and ELD context and flags variance before pay is released.
Payroll control
Payroll & Driver Compensation for Motor Carriers
Trucking payroll may combine per-mile rates, percentage of load revenue, day rates, hourly wages, and 1099 owner-operator settlements in the same fleet. BOF connects those pay models to load data, source documents, deductions, and settlement review.
The Trucking Compensation Landscape
A carrier may run several compensation structures at once: OTR drivers paid per mile, local drivers paid hourly, regional drivers paid a day rate, and leased owner-operators paid a percentage of linehaul. Each structure has different documentation, tax, deduction, and reconciliation requirements.
BOF does not replace your payroll provider, CPA, tax advisor, benefits administrator, or legal counsel. It keeps the record clear enough for those parties to work from the same facts.
Driver Compensation Models
Percentage of Load
Drivers or owner-operators receive a percentage of gross load revenue. BOF ties the pay calculation to rate confirmation, invoice, proof packet, and settlement record.
Day Rate / Hourly
Local, yard, and regional work may use shift-based pay. BOF connects on-duty time, assignment, accessorials, and exception support to the pay period.
1099 Owner-Operator
Settlement is a revenue-sharing accounting event, not W-2 payroll. BOF tracks lease terms, gross settlement, deductions, escrow, advances, and 1099 accumulators.
Owner-Operator Settlement Deductions
| Deduction Type | Description | Control Need |
|---|---|---|
| Fuel Advance | Fuel purchased on company card | Reconcile to gallons, load, route, and IFTA support. |
| Insurance | Cargo, non-trucking liability, occupational accident | Match to signed agreement and weekly proration. |
| Equipment Lease | Truck or trailer lease payment | Confirm lease terms and statement disclosure. |
| Escrow | Reserve held for repairs, deductibles, or guarantees | Track as liability and show balance each settlement period. |
| Tolls / Permits / Lumper | Trip-specific operating costs | Attach receipt, route, or authorization before deduction. |
BOF Governing PolicyBOF-POL-001 - Driver Qualification Policy
Driver classification status and foundational qualification records influence payroll treatment and dispatch eligibility.
View Full Policy →Multi-State Payroll and Per-Diem Support
OTR drivers may earn wages across multiple states, some with reciprocity and some without. BOF tracks driver home state, regular operating states, payroll file support, and review flags for finance or professional advisor follow-up. Per-diem, garnishments, benefits deductions, advances, escrow, and reimbursements are kept as explainable records, not mystery lines on a paycheck.
Payroll-to-Settlement Reconciliation
- Pull closed load data. Confirm assigned driver, unit, delivery, POD, and rate data for the pay period.
- Verify miles or revenue. Compare TMS, ELD, rate confirmation, and dispatch notes.
- Calculate gross pay. Apply CPM, percentage, hourly, day-rate, or settlement agreement terms.
- Apply authorized deductions. Match deductions to signed authorization, lease, receipt, or support document.
- Issue pay or settlement statement. Retain line-item detail and update year-end W-2 or 1099 accumulator context.
BOF Governing PolicyBOF-POL-006 - Billing Packet Requirements
Load revenue confirmed through the billing packet is source data for per-mile and percentage-of-load pay calculations.
View Full Policy →BOF Governing PolicyBOF-POL-007 - Document Retention Standard
Payroll records, W-2s, 1099-NECs, driver settlement statements, escrow ledgers, and deduction authorizations follow the retention schedule.
View Full Policy →