Driver Payroll & Settlement Processing

Lock the dispatch period in McLeod, Axon, or whichever TMS the carrier runs so no new loads post to this cycle. Run the driver pay summary report for the two-week period; spot-check that all delivered loads have a POD attached, since loads without POD won't pay out.

Export Motive or Samsara logs for the pay period for any driver paid hourly or with detention/layover pay. Flag unidentified driving time and unassigned segments — these need a driver edit before payroll, or the time disappears from pay.

Confirm BOLs, lumper receipts, scale tickets, and detention slips are uploaded through Transflo, TruckerPath, or the in-cab scanner. Drivers without a signed BOL on a delivered load get a hold message — they don't get paid for that load this cycle.

Send the missing-docs list to the driver manager so dispatch can call drivers before cutoff. Document the chase in the driver's settlement note; loads with no POD by cutoff roll to the next cycle, not this one.

Apply pending changes from HR: new hires (with completed W-4, I-9, direct deposit auth), terminations, CPM rate adjustments after the 90-day probation, and any garnishments or child support orders. Confirm new owner-operators have a current W-9, COI naming the carrier, and a signed lease agreement on file before processing their first settlement.

Run the CPM calculation against practical or HHG miles per the driver's pay agreement — do not pay against odometer miles unless the contract says so. Confirm the mileage method matches what each driver signed; mixing PC*Miler practical with HHG is the most common dispute on settlement statements.

Add detention (after the 2-hour free time per the customer rate con), layover, stop pay, NYC pay, breakdown pay, and tarping. Cross-check detention claims against ELD on-duty time at the shipper/consignee — driver-claimed detention without ELD support gets denied or escalated to the driver manager.

Apply safety bonus (no preventable accidents, clean roadside inspections, all DVIRs submitted), fuel/MPG bonus from the ELD scorecard, and on-time delivery bonus. Quarterly bonuses prorate on the final cycle of the quarter.

Run federal, state, and local withholdings based on each driver's W-4 and resident state — not the state of the terminal. Multi-state drivers may owe withholding in multiple jurisdictions depending on time worked. Apply 401(k), health, dental, HSA, garnishments, and per-diem reductions per FMCSR transportation-worker per-diem rules.

For percentage-of-revenue O/Os, calculate gross on linehaul plus FSC per the lease — confirm whether FSC pays at 100% or is shared. For per-mile O/Os, run the contracted CPM against the agreed mileage source. Always reference the signed lease, not a verbal rate.

Pull Comdata, EFS, or WEX fuel advances and ATM draws for the period and deduct against settlements. Apply weekly tractor lease payments, occupational accident insurance, physical damage, cargo, ELD subscription, plate/IRP recovery, and Qualcomm/Samsara unit fees. Verify each deduction is named in the lease — unilateral deductions are the #1 source of Truth-in-Leasing 49 CFR 376 complaints.

Reimburse lumper fees with a signed receipt attached to the load. Move any required escrow contribution per 49 CFR 376.12(k) — typically capped, accrues interest, and must be itemized on the statement. Note the running escrow balance for the driver.

Tie gross pay, deductions, and net pay across the company driver register, the O/O settlement register, and the GL. Compare period-over-period — a >15% swing in total miles, gross pay, or fuel deductions usually signals an unposted load, a missed advance, or a duplicated trip.

Check that every driver's effective hourly rate (gross pay / on-duty hours from the ELD) meets the federal minimum wage and the resident state's minimum — California, Washington, and New York require special attention for piece-rate drivers. Confirm overtime treatment matches state law; the FLSA motor-carrier exemption does not cover all states.

Calculate the gap between the driver's piece-rate pay and the state minimum-wage floor for all on-duty hours in the period, and add a make-up line to the settlement statement. Document the calculation in the driver file — California Labor Code §226.2 requires itemized rest-and-recovery and non-productive-time pay on the wage statement.

Transfer from the operating account to cover gross payroll plus tax impound. Confirm cleared funds — drivers paid on a Friday with NSF on Thursday night creates the worst Saturday-morning calls in this job.

Submit the NACHA file to the bank by the cutoff time (typically 3 PM ET for next-day settlement). For drivers without direct deposit, push funds to their Comdata Comchek or EFS card; mail paper checks only as a last resort.

Post itemized settlement statements to the driver portal (McLeod LoadMaster, Axon, or the carrier's app). O/O statements must show each load with linehaul, FSC, accessorials, and every deduction line — a non-itemized statement violates 49 CFR 376.12(g).

Deposit federal income tax, Social Security, and Medicare through EFTPS by the carrier's deposit schedule (semi-weekly for most mid-size carriers). Missing the EFTPS window triggers a 2%–15% failure-to-deposit penalty that compounds fast.

File and pay state income tax withholding, state unemployment (SUTA), and any local occupational/city taxes for each state where drivers reside. Multi-state carriers should keep a state-by-state filing calendar — deposit frequency varies by jurisdiction.

Save the payroll register, settlement statements, ELD pay-period exports, and supporting BOLs to the retention folder. FLSA requires 3 years on payroll records and 2 years on time-and-pay supporting docs; 49 CFR 395.8(k) requires HOS supporting documents for 6 months. Owner-operator settlement records under 49 CFR 376 retain for 1 year past lease termination.

Roll this period's totals into the running 941 workpaper and the state unemployment workpapers so quarter-end filings reconcile without a scramble. Note any cycle-specific anomalies (sign-on bonuses, severance, retro pay) that auditors will ask about later.