Repayment Deduction Basics

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There are some basic need-to-knows when it comes to deductions at CloudTrucks so you can make more money while staying in control of your finances. 

CloudTrucks uses a percentage-based system to collect payment for your deductions from each load because we want to make sure that only part of your line haul revenue goes towards paying for these deductions - the rest should go in your pocket. 

This deduction % is not part of your 18% CloudTrucks fee. 

When you look at your job statement (or "settlement") after you've completed your load, there are 3 primary amounts to consider.

1. Gross amount: before any deductions are taken out. That’s the load’s “rate”.

2. Tier 1: All drivers have the CT Fee taken out as the first tier deduction. For all onboarding drivers, that rate is 18%.

3. Tier 2: After that, any additional expenses get deducted as a percentage from the load, based on their repayment balances that are currently due. 25% is the maximum amount that those different expenses could amount to as a deduction as a default.

• • Escrow, trailer, plates etc all fall in this category.
  • You can think of the repayment percentage tier as a "guardrail" to ensure that the repayment system doesn't take out more than necessary from any individual load, assuming that you will deliver more loads that week to cover your expenses.
  • 25% also doesn’t mean it will always be a full 25% deducted. It just means that it won’t exceed that amount. For example, if they’ve already paid your current repayment balances for the week, then potentially 0% will come out from the rest of the loads for that week.
  • If you fall behind on your repayments, which may happen if you take some time off the road, the system may temporarily bump your Tier 2 percentage maximum up higher for a few weeks until they are caught up, then it will drop them back down to 25% as the default.

More Repayment Deduction System Details

How your deduction % is calculated

Your deduction % is calculated based on how much you still owe us for each deduction and your average weekly revenue. 

This % can range from 25% - 40% for the week until you have paid off all your deductions. 

How your deduction is collected

Each week we calculate your deduction % based on how much you owe us and your average weekly revenue. If this % has changed from the week prior, we will email you Monday at midnight PT telling you what your new % is. 

When you complete a load, first we will apply your 18% lease-on and insurance fee to the total line haul revenue. Next, we will apply your deduction % to collect what you owe for your weekly deductions.

We will apply your deduction % your completed loads until the total amount you we CloudTrucks for deductions that week is $0. 

How to see your deduction %

Tap on the Deductions button from the dark gray banner on your CT mobile app. Your Deduction Rate will be at the top of the page, just below your current balance. For more information read this article: How to view your deduction rate in-app

Deductions FAQ

What are deductions at CloudTrucks?

CloudTrucks helps you access certain products and services that make it easier for you to run your business. We call these deductions because we collect payment for them by deducting form your line haul revenue. 

Some deductions are required, like your ELD and escrow account contributions. Others are optional - meaning you can get them through CT or through another vendor - like a trailer and plates. To get an idea of what your statement, including deductions, may look like click here. 

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. Click here to learn how to use Pay Now in less than 2 mins!

I see "insurance underpayment" on my deduction details. What does that mean?

CloudTrucks automatically enrolls all Virtual Carrier drivers into our group auto liability & 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) so it did not cover our insurance minimum, which is the greater of $600 or 5% of your gross revenue. When this happens, an insurance underpayment is added to your deductions and collected from each load until the underpayment is paid off. 

$12,000 for a month works out to about $3,000 gross weekly (if the month has 4 weeks). So basically you want to make sure your average gross weekly revenue for each month is over $3,000 to cover your insurance.

What is the maximum I can be charged for an insurance underpayment?

If you make less than $12,000 gross revenue in a single month, the maximum you will be charged for insurance underpayment is $600. If you make more than $12,000 gross revenue in a single month, you will not be charged an insurance underpayment, but 5% of your 18% lease-on and insurance fee will be applied towards auto liability & cargo insurance. 

How can I see the amount collected for deductions from a specific job? 

Follow these steps:

1. Click on your Deductions Tracker from the home page of your CT app (in the dark gray banner)

2. Tap into any deduction and scroll down until you see Payment History. 

3. Click on the load you want to see your job statement for

4. From the load details page can tap into the blue See Job Statement button 

5. There you will see an itemized list of every deduction taken out from the load as well as your take home pay

 

Why do I see multiple line items for the same deduction?

There are a couple reasons you may see this:

1. If your team has multiple of the same deduction, like multiple trailers 
2. If you paid for a deduction, paused it, and then resumed the deduction 
3. If you are behind on payments for the deduction, the late payment will show up as a separate line item for that deduction 

Why do you charge a % and not a flat fee when collecting payment for deductions?

We use a deduction % rate to collect payment from each load because we want to make sure that only part of your line haul revenue goes towards paying for deductions. 

If you prefer to pay for deductions with a flat fee, use the Pay Now feature to pay off any deductions at the beginning of the week.