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CloudTrucks Deductions Guide

  • Updated

We want to make it easy to run your business as an owner-operator. CloudTrucks helps you manage certain business costs automatically by deducting them from your gross linehaul:

  • Our lease-on fee and your insurance fees 
  • CT Fuel payments 
  • Business expenses such as your ELD rental, plates, or trailer 

Find details about CloudTrucks’ approach to deductions and what it means for you below.

What is deducted? 

From your gross linehaul amount, we deduct: 

  • LEASE-ON AND INSURANCE FEES (18-21%): We take 13% to cover CloudTrucks’ leasing fee and 5% to cover your auto liability and cargo insurance. Drivers using CT Dispatch pay an additional 3%. 
  • PICKUP PAY (0-50%): If you’ve taken any Pickup Pay for this load, we’ll deduct that next. 
  • CT FUEL PAYMENTS (0-35%): If you have a balance on your CT Fuel card, we’ll attempt to pay it down to $0 after each load is delivered – but we’ll never take more than 35% of your linehaul. Learn more about how Fuel Card payments work. 
  • DEDUCTIONS (0-30%): CloudTrucks will deduct up to 15, 20, or 30% — based on your deduction rate — to repay your outstanding balance. This might include: 
      • ELD rental ($30/month): All CloudTrucks drivers are required to run on a Motive ELD we provide. 
      • Escrow account ($2,000 total): We collect $100/week over your first 20 weeks with us, starting two weeks after your first completed load. Learn more about Escrow Accounts.
      • Plates ($50/week): For drivers renting plates through CloudTrucks. 
      • Trailer (5-7%, or $200-250/week): For drivers leasing a trailer through CloudTrucks. Learn more about leasing trailers. 
      • NTL and Occ Acc Insurance ($38/week): We partner with Reliance to provide NTL and Occ Acc insurance. Learn more about our insurance options. 
      • Other statement deductions: These could include tolls or violations, IFTA taxes (paid quarterly), and your truck note. 
  • MAINTENANCE FUND: Virtual Carrier drivers can elect their Maintenance Fund contributions, and Road to Independence drivers are required to sign up. Learn more about Maintenance Funds.

You can see itemized deductions on your job statement for each load. 

 

How is my deduction rate set? 

Our system automatically sets a maximum percentage for you: 30%, 20%, or 15%*. This is set based on how much you currently owe, relative to your average weekly revenue. We refresh this monthly, and we’ll send you an email if your rate changes. You can always see your deduction rate in the CloudTrucks app. 

This rate is a maximum we’ll deduct from any individual load. If you’ve already paid your repayment balances for the week, we might deduct 0% for the rest of your loads that week, even if your monthly deduction rate is currently 30%. 

* Exceptions may apply. Circumstances such as a high truck note with one of our partners could lead to a deduction rate over 30%.

 

How can I keep my deduction rate low? 

The best way to keep your deduction rate low: stay on top of your payments! Pay off what you owe on time and in full, or catch up using Pay Now if you need to. 

 

Why does CloudTrucks deduct a percentage and not a flat fee?

We want to make sure that only part of your line haul revenue goes toward deductions, which is why we use a percentage. If you prefer to pay for deductions with a flat fee, use the Pay Now feature.

 

How can I track my deductions? 

Use the Deductions Tracker in the CloudTrucks app. We recommend checking it at least once a week while you’re running, so that you stay on top of your business.
 

How can I avoid building up additional charges if I need to take down time?

These things happen, and our team can help. Learn what to do if you need to take time off. 

 

Deduction details FAQs

  • I see "overdue balance" on my deduction details. What does that mean? If you weren't able to pay off all of your deductions in one week, the remaining amount will be added to what you owe for the following week as an overdue balance.

    Overdue balances can happen if you take some time off driving, which is why it's important to stay on top of what you owe each week and catch up with Pay Now if you need to.
  • I see "insurance underpayment" on my deduction details. What does that mean? CloudTrucks automatically enrolls all Virtual Carrier drivers into our group auto liability and cargo insurance as part of the 18% lease-on and insurance fee. When you see an insurance underpayment on your deductions, that means your total line haul revenue for that month was below $12,000 (gross) per active truck, so it did not cover our insurance minimum, which is the greater of $600 or 5% of your gross revenue per active truck. When this happens, an insurance underpayment is added to your deductions and collected from each load until the underpayment is paid off.

  • Why do I see multiple line items for the same deduction? There are a few reasons you may see this:
    • If your team has multiple of the same deduction, like multiple trailers. 
    • If you paid for a deduction, paused it, and then resumed the deduction. 
    • If you are behind on payments for the deduction, the late payment will show up as a separate line item for that deduction.
  • Why does the dollar amount collected for each deduction vary from one statement to another? We use an overall deduction percentage to collect the entire amount you owe for deductions for the week, rather than collecting for each deduction individually. When you itemize the amount we collect for each deduction, it may seem like we're collecting more for a deduction on a higher paying load and less on a lower paying load. However, we only collect the same total deduction percentage from every completed load each week until what you owe CloudTrucks is $0.

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