Money, Costs & Settlements
Working Under Another Carrier's Authority: Know Where Your Money Goes
Leasing onto another motor carrier's authority can be a legitimate way to operate. To understand your earnings, look past the deposit in your bank account and follow how each settlement moves from gross revenue, through contractual deductions, to net pay.
Educational Guide
Why some owner-operators lease on · Don't only look at the deposit · Hypothetical settlement example · Documents to compare
Instead of operating immediately under their own authority, some owner-operators lease their truck to an established carrier. The carrier may provide authority, insurance, freight access or back-office support, and the lease sets out how the owner-operator is paid.
Why some owner-operators lease on
Working under another carrier's authority can be a legitimate way to enter or operate within the trucking industry. Deductions are not automatically improper. The purpose of this guide is to help owner-operators understand their agreements, settlements, expenses, and records so they can make informed business decisions.
Don't only look at the deposit
The deposit is the end of the calculation. Understanding how the settlement got there helps you check it against your agreement and plan your business.
Federal leasing regulations (49 CFR Part 376) address what written leases between authorized carriers and owner-operators must contain, including compensation and charge-backs. Read the official text or ask a professional how it applies to you.
Hypothetical settlement example
Educational hypothetical only. Categories and amounts differ by agreement, and not every deduction applies to every lease.
| Line item | Amount |
|---|---|
| Gross freight revenue | $7,000 |
| Carrier / lease percentage | If applicable |
| Dispatch fee | If applicable |
| Insurance deduction | If applicable |
| Fuel | Actual amount |
| Tolls | Actual amount |
| Trailer / equipment charges | If applicable |
| ELD / technology / admin charges | If applicable |
| Escrow | If applicable and authorized |
| Other authorized deductions | If applicable |
| Net settlement to owner-operator | $____ |
DHC is exploring a future free Settlement Checker to walk through this math. It is not available yet.
Documents to compare
- Your written lease or contract
- Rate confirmations, where you are entitled or authorized to review them
- Each settlement statement
- Fuel transactions
- Toll records
- Insurance deductions
- Equipment charges
- Escrow records, where applicable
- Any other authorized deductions
Gross revenue is not profit
- Gross revenue
- minus contractual deductions
- minus operating expenses (fuel, maintenance, truck payment and others)
- equals the amount remaining before other business and tax obligations, as applicable
When something doesn't match
If a settlement item doesn't match your written agreement or records, ask the carrier to explain it, and keep copies of what you receive. This guide does not decide whether any specific deduction is lawful. For situation-specific advice, consider a qualified transportation attorney, accountant, tax professional, insurance professional or the appropriate regulator.
Official sources
Free DHC member resource
Go further with the step-by-step roadmap
Create a free DHC account or sign in to access the complete step-by-step trucking-business roadmap, saved progress and member resources. No payment required.