Worked examples - driver pay
Real numbers for pay plans: per delivery, per km, rush and wait time, percent of order, hourly with Ontario and British Columbia overtime, guarantees and floors, own-vehicle allowance, route pay, COD shortfall deductions and a contractor's statement with GST/HST.
On this page
Each example uses one pay plan and one order, shift or route, and shows every pay line. All of them were run through the same rules NemiRoute uses. You can reproduce any of them in the plan's Simulator (Set up driver pay plans). Each line is rounded to the cent on its own (half a cent rounds away from zero), so the lines always add up to the total.
Per delivery, per km, rush and wait time
Plan: Per delivery $4.50, Per distance 55 cents per km (Distance basis: Order route distance), modifiers Rush flat $3.00 and Wait time 10 free minutes then 50 cents a minute. The order: 12.5 km, rush, 20 minutes of waiting, $4.75 tip.
| Pay line | Calculation | Amount |
|---|---|---|
| Per delivery | $4.50 | |
| 12.5 km | 12.5 x $0.55 = $6.875 | $6.88 |
| Rush | $3.00 | |
| Wait time | (20 - 10) x $0.50 | $5.00 |
| Order pay | $19.38 | |
| Driver tip | paid in full, on its own line | $4.75 |
| Driver earns | $24.13 |
Percent of the order with a minimum and a maximum
Percent of order: 60 % of the order subtotal, Minimum per order $8.00, Maximum per order $25.00.
| Order subtotal | 60 % | Paid |
|---|---|---|
| $10.00 | $6.00 | $8.00 (minimum) |
| $25.00 | $15.00 | $15.00 |
| $50.00 | $30.00 | $25.00 (maximum) |
Hourly pay with overtime
Hourly $20.00 an hour. The overtime rule (by default it applies to employees only, not contractors) decides how many of the paid hours are regular, overtime and double time (Payroll settings, Pay periods and statements).
| Rule and day | Hours | Pay lines | Total |
|---|---|---|---|
| Custom: 1.5 x after 8 h a day. A 10-hour day | 8 regular, 2 overtime | 8 h x $20.00 = $160.00; 2 h x $30.00 = $60.00 | $220.00 |
| British Columbia preset (1.5 x over 8 h a day, 2 x over 12 h; it also has a 40 h week). A 13-hour day early in the week | 8 regular, 4 overtime, 1 double time | $160.00 + 4 h x $30.00 = $120.00 + 1 h x $40.00 = $40.00 | $320.00 |
| Ontario preset: 1.5 x over 44 h a week. Five 9-hour days (45 h) | 44 regular, 1 overtime, all on the fifth day | The fifth day: 8 h x $20.00 + 1 h x $30.00 | $190.00 on that day |
Guarantees and floors
- Minimum guarantee per day, $120.00, on an Hourly $10.00 plan. A 6-hour shift earns $60.00 and gets a $60.00 top-up. A 12-hour shift earns $120.00 and gets none. Deductions, tips, allowances and reimbursements never count toward the guarantee, and a deduction is never paid back by the top-up.
- Minimum guarantee per pay period, $600.00: a driver with $540.00 of earnings in the period gets a $60.00 top-up when the period closes.
- Engaged-time floor, $17.60 per engaged hour (the rate the plan editor starts with; it is not updated for you, so set the minimum wage that applies to you): jobs from 09:00 to 11:00 and 10:30 to 14:30 overlap for half an hour, so engaged time is 5 h 30 min. The floor is 5.5 x $17.60 = $96.80. A driver who earned $80.00 gets a $16.80 top-up; one who earned $100.00 gets none. Tips are paid on top.
Own-vehicle allowance
Plan: Hourly $10.00, Vehicle allowance 20 cents per km and $15.00 per day. An 8-hour shift with 80 km:
| Vehicle | Allowance lines |
|---|---|
| Driver's own | 80 km x $0.20 = $16.00, plus $15.00 for the day. The per-km part is a reimbursement on the statement, the per-day amount is pay |
| Company | none |
The per-day amount is paid once a day, however many shifts the driver works.
Route pay
Plan: Per stop $2.50 (Unpaid stops per route 0), Per package $0.30 with Free packages per stop 1, Per route $50.00. A route with three stops carrying 1, 3 and 2 packages:
| Pay line | Calculation | Amount |
|---|---|---|
| 3 stops | 3 x $2.50 | $7.50 |
| 3 packages | 0 + 2 + 1 over the free one at each stop, x $0.30 | $0.90 |
| Route | $50.00 | |
| Route pay | $58.40 |
A cash on delivery shortfall
A driver collected $80.00, $50.00 and $30.00 (afternoon last) and hands in $145.00 of $160.00. The missing $15.00 is charged to the newest collection (the $30.00 one). When you decide the shortfall is deducted from the driver, a line COD shortfall SHP-2043 of -$15.00 goes on their pay. If they handed in $110.00, the $50.00 missing is charged to the newest first: $30.00 on the last collection and $20.00 on the one before. See Collect cash on delivery from drivers.
A contractor's statement
An Ontario contractor with a GST/HST number on their driver profile:
| Statement line | Amount |
|---|---|
| Earned on orders (taxable) | $400.00 |
| Tips (no tax) | $20.00 |
| Gross | $420.00 |
| HST 13 % on $400.00 | $52.00 |
| Mileage allowance (reimbursement) | $16.00 |
| COD shortfall (deduction) | -$15.00 |
| Net | $473.00 |
Net = gross + tax + reimbursements - deductions. For a Québec contractor with a QST number the tax on $400.00 is GST $20.00 and QST $39.90. PST/RST is not charged on courier services, and a contractor without a GST/HST number and Province of supply gets no tax line. See Pay periods and statements.
Related articles
- How-toSet up driver pay plansBuild a pay plan from components and modifiers, pay different rates for own and company vehicles, try it in the simulator, assign it to groups of drivers and publish new versions.
- How-toRoute, outcome and conditional payPay drivers per stop, package or route, for failed attempts, returns and late cancellations, only under conditions, split between pickup and delivery drivers, and pass tips on in full.
- How-toPay periods and statementsClose a pay period, review and fix driver and staff statements, approve, record the payment and export to your payroll system.
- Page guidePay plan editorEvery part of a driver or staff pay plan: units, each pay component type and its fields, modifiers and bonuses, "Only when…" conditions, the pickup and delivery split, the vehicle allowance, the simulator, versions and assignments.
- ConceptWorked examples - cash on delivery and card paymentsReal numbers for cash collected at the door (short payments, who carries the loss, short remittances, aging) and for card payments (overpayments held as credit, refunds, voids, fees, net to you and the card surcharge).
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