Setup: Pay Contract for Truck Driver - Percent of Load Revenue

In order to set up rate to pay an employee a percent of load revenue you need to set up a 'Pay Contract' for the employee.  Select Contracts | Payment Contracts | Contract Setup from the Main Menu.  This link explains how to use the 'Pay Contract Wizard' in order to set up a pay contract.

The key steps involved in setting up an employee contract in the wizard are Steps 2, 4, and 6:

Step 2:  Select the Employee for the Pay Contract

In this step, you select the employee you want to pay.  Click on the 'Type' Worker/Operator, which fills the list on the left with your employees (as well as subcontracted workers).  You then select the employee (you can only select one at a time) you want to pay.

Note that there is an entry called "DRIVER"  This entry is very powerful in that it acts like a wild card for employees.  If you select DRIVER, you can pay whichever driver is entered on the load slip.  Thus, if you want to pay all drivers based on identical terms, you can setup one pay contract using the DRIVER wild card, and it will cover all drivers.  Moreover, if you use a DRIVER contract, but want to pay one driver an exception rate, you can set up a specific contract for that employee.   The Logger's Edge is smart enough to choose the specific employee contract when a DRIVER contract might otherwise apply.

Example.  I have five truck drivers that work for me that get paid 20 Percent of my trucking revenue, with the exception of Jeff Kent who gets 21 percent.  I set up one contract that pays "DRIVER" to cover all employees.  I then setup another contract to pay Jeff Kent specifically; this contract will trump the "DRIVER" contract so that Jeff will only be paid only once.

Step 4.    Select 'Load Revenue' Contract Type

You must select the 'Calculate Pay as a Percentage of Load Revenue' option.

Step 6.    Enter Pay Rate

This is the step where you enter the rate you want to pay the employee.  A detailed explanation is available in the link: Setting up a Pay Rates: Calculate Pay based a Percent of Load Revenue.  The screen below shows an example of the rate screen.

The two requirements for an employee to be paid according to a pay contract are:

(1)  that the block on the pay contract must match the block of the load (or the block entry must be blank), and

(2)  that the activity must be trucking.

In this screen you can set up the rate breaks you want to use to pay the employee.  In row 1 (in the example above) I have entered a blank for the block, indicating I want a rate of 20 percent of Load Revenue to apply to trucking for ALL blocks.  In row 2, I have entered an 'exception' rate that indicates that if the trucking is performed in block '03-RAINBOW-2991', I want to pay 22 percent of Load Revenue.  The rate in row 3 is the same as in row 2, except that it has an effective date of 6/1/2004 -- meaning the rate of 23 percent will apply for loads delivered on or after 6/1/2004.  For loads delivered between 1/1/2004 and 5/31/2004, on block 03-RAINBOW-2991, the rate of 22 percent is operative.

In calculating the percent of load revenue The Logger's Edge multiplies the percentage amount by the revenue for the matching pay activity for the load.  Thus, if your contract is set to pay 20.0 of load revenue for SKID, you must have revenue for SKID on the load.  Likewise if your contract is for 80.0 of load revenue for TRUCKING you must have revenue for TRUCKING.  This requirement means that you must have a revenue contract set up for the matching activity for which you want to pay on a percent of load revenue.

Extension

There is an option in The Logger's Edge that allows you to override the activity matching requirement.  We can configure your system so that you can specify the revenue activity upon which you want your percentage rate to be applied (see below).

In the above example, percentage rates are applied to load revenue from the 'LOG PURCH' activity -- not the trucking activity.  The Revenue Activity column gives you the flexibility to choose which revenue activity you want to use as your pay basis. 

By default, the Revenue Activity column is NOT enabled in The Logger's Edge.