93: Truck Driver Yearly Income and How to Calculate Net Pay

In this week’s episode of the Oakley Podcast, host Jeremy Kellett shares the year-end numbers of a few owner-operators, explains settlement summaries, and more.

Key topics in today’s conversation include:

  • Oakley Update: fuel discounts, freight update, owner-operator recognition (2:33)
  • Settlement summaries (4:40)
  • Owner-operator year-end numbers (15:32)

Oakley Trucking is a family-owned and operated trucking company headquartered in North Little Rock, Arkansas. For more information, check out our show website: podcast.bruceoakley.com


Automated transcription – May contain errors

Jeremy Kellett  00:12

Welcome to the Oakley podcast, trucking, business and family. This show is brought to you by Oakley trucking headquartered in North Little Rock, Arkansas. The purpose of this podcast is to communicate with Oakley owner operators and their families by giving them up to date information concerning Oakley trucking in the trucking industry. From business advice to safety updates to success stories, also to give an insight to outside truck drivers that might be interested in joining the Oakley family. This Jeremy Kayla, Director of recruiting here at Oak we trucking I’m your host for this podcast. This is the Oakley podcast and this is episode 93. So on today’s episode, I’m going to talk numbers. I’m going to specifically talk a year in numbers and some of our owner operators and explain a settlement summaries to you. So we’re going to dive a little bit deeper, which is shows all revenue earned expenses paid out. Net money and number of miles driven. And I want to go over that. So if you just always listen to this podcast, I encourage you to YouTube this one and see for yourself these numbers it’ll make it a whole lot easier to listen to, if you YouTube it and actually watch because I’m going to go line by line on the settlement summary and show you what it is and how it works. So before we do that, let’s do the Oakley update sponsored by aero truck sales. Keith Wilson at Aero truck sales in Springfield, Missouri is currently offering $1,000 off your first month’s payment when you finance with transport funding, or $1,000 off the truck price if you bring your own financing. They’re also discounting the cost of an extended warranty by $500. Aero truck sales has been a longtime partner with Oakley trucking, and that’s because they specialize in first time truck buyers. They don’t do any leases. They have the best use trucks money can buy because use trucks is all they do. They don’t sell any new drugs. And the biggest reason that arrow and Oakley are partners is service after the sale. It is very important to us at Oakley, that when we refer you to a company, that they are a good company with good people, they do what they say and they understand our requirements. So give Keith a call at 573-216-6047 for a good use truck and tell him you heard about it on the Oakley podcast. Okay, okay, update today. Got some good stuff for you. Number one is fuel discounts. And we talk about these fuel discounts quite a bit. But I still don’t know if all our owner operators understand that we’re getting some great fuel discounts from all the big name stops, pilot loves ta Petro, you got to take advantage of these discounts. And the way you do that is on your trans Flow app. And if that’s if it’s not coming up on your trans Flow app, then you can go to the website. And it’s through the driver portal, you can do that. But take advantage you need to pay attention to these because just because you always feel up at loves doesn’t mean you’re always getting that best discount. Typically it is with loves, but you got to pay attention. And I encourage y’all y’all it’s a lot of money right there that can be taken advantage of. So fuel discounts is really good. I appreciate. also appreciate all the stops that give us these discounts man, he just don’t know how, how good we have how much we do appreciate him in our owner operators appreciate him too. So also the other thing I was talking to dispatch, basically they said freight has just picked up right where it left off. It’s rocking, they’re hollering at me all the time going, Hey, we need trucks when he drove when he drove so that’s a good sign. It’s always a good sign. Mike’s a little tough on the recruiting department, but that’s alright. And then as always on the Oakley update, I like to recognize one of our owner operators and this guy here has been with us 24 years. He’s a great owner operators name’s Hilbert hunch and he lives in Floresville, Texas. He’d been with us 24 years. Like I said, he’s got a 2016 Peterbilt and he pulls for Russell in the hopper division. I asked Russell a little bit about him and he said, I know the first thing he was gonna say he said, Well, his wife Pat brings us peanut brittle every Christmas. So we love mishpat for the peanut brittle, and his handles Redwing if you didn’t know that, and he said he’s just a fun, easygoing guy easy to work with. And he’s proud to be able to dispatch him and I’ll tell you, Hilbert, we appreciate you too, man. You’re an asset to Oakley trucking, and we appreciate you being here. 24 years. Okay, let’s talk settlement summaries. You know, the first thing you might think is what is the settlement summary? Well, that’s why I’m going to show you we’re gonna go line by line but basically what a settlement summary is a summary of all your settlements, all your loan that you were paid by Oakley trucking, it breaks down all the revenue that we’ve paid you then it runs takes down all the expenses that was held out of your settlement. And it gives you the net money. And then it breaks down your loaded miles and empty miles. Great, great tool we have here at Oakley trucking. And I want to also give a big thanks to the accounting department because they already got all these done, you know, almost 800 owner operators and I got them done quick, right out of the gate. And it’s just they do a fantastic job to be able to get these numbers and make it super simple. For a man like me to understand it’s got to be simple. So let’s look at let’s look at a team first in the pneumatic division. So these numbers are going to be big, because we don’t have a handful of teams. But these people, they are workers and on the settlement summaries. I’m not going to show any names or anything because you know, it’s private information. But I am going to show you these numbers. And we’re gonna go down line by line and I’ll try to explain the best I can on all this stuff. So let’s start with a team and the pneumatic division. And the first line is percent of revenue will some loads there are occasionally some loads that you might get paid a percentage on during the year whether it’s short loads, typically it’s just shorter loads. So that’s what that is. The next line is anniversary bonus. So we pay an anniversary bonus to all our owner operators. And basically it starts with your when you start working at Oakley, you build up you get paid 10 cents a loaded mile that you do that whole year and on your anniversary date rolls back around that first year we cut you a check just for being here. There’s no catch to it. I mean, I guess the catch is you got to be here. If you don’t if you’re not here, you’re not getting it if you work 10 months and you got a bunch of money built up in there you get zero if you quit so or get terminated. So keep that in mind. But this is just something that we offered a started a long time ago and we just upped it from five cents to 10 cents on your first year and then you get your second year you get 11/3 You get 12/4 You get 13 It just keeps going up and there’s no cap to it. Anniversary bonuses fantastic deal we come up with to be able to help an owner operator to look forward to something every year so alright, that’s the second line third line CSA mileage pay. If you don’t know it here at Oakley, we pay you based on your CSA score. Now, a few leaves lease on to us you automatically have a zero score which means you get top pay which is 25 cents a mile. If you have violations while you’re at it at Oakley, then that can go down if you get written up. So their CSA mileage by here is 53,000 to 27. Next is to merge pay and to merge pay by day those two lines are basically go together. I think one of them is you know if we paid hourly to merge or we paid by day they just separate it by the line escrow interest. You do get a little bit of interest on your escrow that you get we have a $5,000 escrow that you have to build up with Oakley flat pay rate, you know occasionally there’ll be a we pay him a flat pay, you know, I don’t even know what an example would be like for that. Sometimes it’s a load but I think you don’t see that very often. fuel surcharge pay, you know about the fuel surcharge it fluctuates as fuel goes up, your fuel surcharge pay goes up, fuel goes down, it goes down and we paid them 61,000 In fuel surcharge pay layover pay you do get some layover pay that’s a little different than the merge. The demerge we are able to build the customer the layover pay is pretty much we just pay it out of Oakleys pocket for layover so you get some of that $6,500 Worth mileage pay $310,623 and mileage pay bam. Then the mileage surcharge So in November we did a I call it freight surcharge because freight rockin it’s so good. We did an extra 10 cents on all the loaded and empty miles. Starting in November we’re doing it on 90 day increments and reevaluating it to see if we want to keep doing it. That’s what that is $2,900 because it started in November recruiting bonus hey we pay $5,000 for them to recruit somebody and then $100 for the actual lead actually that lead now is 150 bucks we pay but so they got somebody leased on then the vacuum pay flat rate and the vacuum charge pay basically same same money and because they’re pulling a vacuum pneumatic so they actually load themselves and we pay for that. Pay them to do that. Then you get your total 1099 total is $470,406 for these owner operators. Wow. So I’m talking about $470,000 They gross here at Oakley trucking. Now we’re going we’re getting to it, we’re going to see how many miles I had to do to gross 470,000. But first, before we do that, I want to go down this expense line. So that’s the revenue arm. Now let’s go down these expenses on this settlement summary. The first one is base plate fee. Pretty simple. If you don’t have your own base plate, you can get our base plate with Georgia 30 bucks a week. That’s what that 50 nanny is. Escrow payment. If anything was taken out of your escrow, if you had a full escrow $5,000 and lock right here, this is $351 Something you know something was taken out of there. I don’t know it could have been something in the shop to fix or who knows. 351 bucks but typically nothing. Fuel Tax pretty simple $53 miscellaneous shop charges $919 That is probably that is probably like service under blower maybe changing olan or blower that kind of stuff or be in the shop. Getting signs could be anything. miscellaneous expenses to the owner operator, same thing. Oakley yard fuel so we can get fuel here at Oakley Jordan just come out of your settlement. Occupational accidental insurance. I believe that’s $43.90 per person per week. So that should be what that totals up for 52 weeks. Pre pass they have a pre pass that’s the total for the year Qualcomm rental scale tickets reimbursed. Pretty simple. Tch miscellaneous purchase. I’m gonna say I do need to double check on that. I’m gonna say that’s the day of fluid because we have fuel broken out and then I think they break out the Deaf fluid to tractor fuel purchase. Oh yeah, autos, much toes we reimbursed because the prepass covers the toes now, but they attract her fuel purchase. So they bought fuel $106,875 worth of fuel. And then of course, you have to add in the Oakley yard fuel too. So it’d be their total fuel expense, trip pack transload charges 207 bucks. And you can see I mean, the standard weekly deductions if y’all want to know if you want to know what those are with everything. We’ve got that on our website. I mean, check it out and coaching call us we can send it to you if you’re not working here and you want to know what those weekly deductions are. We sure give them to you. Truck wash, you get truck wash here reserve Louisiana commodity settlement, they spent three and $25 on truck washes. Here at Oakley. And then wash reimbursement it would be you know, they probably got to try to wash and we paid them back for. So total expenses $123,685 of expenses coming out of $470,000 Gross. So that means they netted $346,000 In one year as a team pull in a pneumatic tank for Oakley trucking, what a fantastic paycheck that he is or pay year that he has and the mileage here looked at a little bit lower here on the mileage, just so you can get an idea. I mean, miles I ran loaded miles were 114,000 Empty miles 92,000. So they ran 206,000 miles and 2021 to earn a net of $346,721. fan tastic I’m telling you, that is really good money to make on 206,000 miles now you got to remember, those are all the expenses taken out of there. The only thing that’s not is the truck payment and their truck repairs if they had any. So that’s that’s the you take that out of that other net and that’s what the you know, if you want to take in everything that so that is pneumatic tank, I want to give you a couple of more because I want to go where I’m not going to go line by line on the rest of them. But I’m going to give you some end dumps and hoppers maybe another pneumatic guy here real quick too. But first let’s hear from our sponsor lubes Oh, cold weather and batteries don’t go together. That’s why lube zone is rolling out battery services this month at their locations. Get a battery test for free $30 value and get a full system electrical test for 4999 a $70 value loop zone currently has 11 locations throughout Texas, Oklahoma, Georgia and California with more on the way they can do annual DLT inspections along with CSA inspections without making an appointment loop zone thrives on giving great customer service to the truck driver offering full service to disclosure and advice without the intent to upsell additional products to you that you don’t need. But don’t forget what loop zone is famous for fast is back. Their goal is to provide good PDM services as quick and efficient as possible so you can get back on the road. They offer three major old brands Shail Delo, and mobile products along with OEM approved filters, stopped by one of their locations and let us know how your experience was. Check out loop zone.com For all their locations and tell him you heard about it on the Oakley podcast. Okay, real quick. Let’s do a pneumatic, another pneumatic and I’ll put this up on the screen so, you know you can see what he grossed and what his expenses were but this one was 202 $182,305 This is a single owner operator, pulling for Oakley. He grows to earn 82,000 And he netted 214,000 out of that that’s 76% He needed of his gross that is fantastic. And his mileage he did 105,773 miles to do that. That’s how you tell you make money right there. That’s a pneumatic I had one more other pneumatic I was going to show you and we’ll put it up here on the screen so you can see it. This is a single owner operator with pneumatic tanks he did 308,300 8570 for $7 was his gross his expenses are 95,000 he netted 213 he needed to earn 13,000 out of 308 at 71%. And he ran 131,000 Miles pneumatics or their top pay at Oakley less. That’s the division we pay the most. So let’s take a couple indents and let me show you show you what they make. So you can compare each division I think, you know, I think it just helps if you kind of see what each division makes because you know it’s not too terribly far apart. You’d be surprised. So here’s a single owner operator on and up. We’ll put his up here so you can you can see it. And he grows $269,000 269 308 To be exact his expenses for the year were $75,000. So he netted $194,028 out of 269. That’s 72%. And he ran 129,000 miles. To do that. It’s all an end up a solo owner operator. Here’s one that’s probably real close to the top, if not the top and guy. I haven’t got a list of who’s the you know very top yet. I just kind of picked these out. This one here is 278,000 and 201 $278,000 Gross. expenses were 78,000. So he netted $200,071. And he ran 130,000 miles. So that’s, that’s getting it. I mean 130,000 miles, that’s 2500 miles a week average for 50 weeks. An error, my calcular. So that’s your dumps? Let me give you a little bit of Hopper info here while I’m on it. This one is yeah, these are all single owner operator. So this single owner operator on the hopper division, he did $237,000 Gross. His expenses were 79,000 and he netted $157,000 and ran 126,000 miles. So a little bit different from your dump gas. Because I you know the don’ts paid for 20 but he was 20 cents a loaded mile more. Here’s a hopper guy he was amongst us. I know this guy was among the top $242,000 Pulling the hopper and expenses were 71,000 and he netted $171,000 at 70% of his gross pay that we paid him here at Oakley trucking. And one more for the hopper this guy. He did $224,000 He gross his expenses were 75,000 he needed $148,000 on 120,000 Miles gives you a little bit of information to look at and understand how simple the pay is at Oakley trucking really appreciate the accounting department to getting those ready for us and for everybody in all our operators. You have those at your fingertips that you can log into your driver portal and see your settlement summary for sharing I think is great information that also helps us in recruiting. We can give it to you just where you can look at it. Be transparent on what you can make here at Oakley trucking, and it’s all up to you. So, once again, I appreciate everybody listening to the Oakley podcast, please share and lock and subscribe. Leave a comment that helps us a lot. And if you got any questions or comments, you know, hey, if you need to call me up, tell me that’s fine. But I need some information back from you guys. I really appreciate everybody listening in. This has been a good podcast for us and we’re gonna keep it going. If you have any questions about settlement summaries, man, call your dispatcher call me we’ll go over it and understand it the best we can we appreciate everybody listening to Oakley podcast we’ll talk to you next week. Thanks for listening to this episode with Oakley podcast, trucking, business and family. If you enjoyed this episode, be sure to write or review the show in the podcast platform of your choice and share it with a friend. We love hearing from our audience. So if you’ve got a question, comment or just want to say hello, head over to our website, the Oakley podcast comm and click the leave a comment button. We’ll get you a response soon and may even share some of the best ones here on the show. We’ll be back with a fresh episode very soon. Thanks for listening