Managed Payroll · Trucking & Transportation

Managed Payroll for Trucking Companies

Trucking payroll is not like other payroll. Per diem rules, W-2 versus owner-operator classification, DOT compliance, and routes crossing a dozen state lines create a payroll environment no generic provider is built to handle. We manage all of it at $25-$45 per employee per month -- so you focus on moving freight, not managing payroll.

See your exact monthly & annual price - no call required

$25-$45Per employee per month, all-inclusive
All 50States covered, including multi-state DOT routes
No migrationWorks in your existing system

The Cost of Running It Yourself

Where trucking payroll goes wrong -- and how much it costs when it does.

W-2 vs. 1099
Driver misclassification is one of the most litigated payroll issues in transportation
Treating an employee driver as an independent contractor exposes your company to back employment taxes, DOL penalties, and IRS reclassification audits stretching years back. One misclassified driver can trigger a fleet-wide review.
Per diem
IRS per diem rules for drivers must be applied exactly right or the payments become taxable wages
The IRS allows a per diem rate for long-haul drivers away from home. When it is structured incorrectly -- wrong documentation, wrong amounts, or wrong pay code -- the entire per diem gets reclassified as ordinary wages, triggering back payroll taxes plus interest.
Multi-state
Routes crossing state lines create tax nexus in every state where drivers stop and work
A driver running from Texas to Ohio and back creates payroll tax obligations in every state along the route. Most carriers handle this incorrectly or not at all -- until a state audit surfaces the exposure.

Industry Reality

What makes trucking payroll different from every other industry

Mixed workforce structure

Company drivers (W-2), leased owner-operators (1099), and lease-purchase drivers may all run in your fleet simultaneously. Each category has different pay structures, tax treatment, and paperwork requirements.

Per diem compliance

Long-haul per diem rates, day-cab exclusions, and the DOT 80/20 rule governing per diem eligibility require precise tracking and documentation every pay cycle.

State apportionment

Interstate carriers are subject to the IFTA for fuel but also face complex state payroll tax apportionment rules when drivers work across multiple jurisdictions.

Seasonal headcount swings

Holiday freight peaks and seasonal contracts mean headcount jumps and contracts with the calendar. Your payroll model needs to scale without re-contracting every 90 days.

How It Works

Three steps to fully managed trucking payroll

01
Scope review

We map your driver roster, owner-operator agreements, per diem structure, and multi-state route patterns. You get a fixed monthly cost before we start.

02
Payroll configuration

We configure your W-2 driver pay, per diem pay codes, owner-operator 1099 processing, and state registrations. No migration required -- we work in your existing system.

03
Ongoing managed service

Every pay cycle, every state filing, every per diem calculation, every year-end 1099 and W-2 -- fully managed by BEG. Your team approves, we execute.

What You Get

Three things most payroll vendors do not offer trucking companies

Bonus 01No migration. We work in your existing system.

Common objection: "Switching payroll systems disrupts dispatch and fleet management integrations."

We do not require you to change TMS or payroll platforms. BEG operates as your managed payroll team inside your current system. If you want to upgrade to isolved or a better platform, we can handle that transition -- but it is never a prerequisite to getting started.

Bonus 02All-inclusive flat rate.

Common objection: "Payroll services bill extra for multi-state filings, 1099 processing, and per diem tracking."

The $25-$45 PEPM rate covers it all: W-2 processing, owner-operator 1099s, multi-state tax filings, per diem tracking, year-end W-2s and 1099-NECs, and BEG support.

Bonus 03A dedicated BEG contact who knows transportation payroll.

Common objection: "Generic payroll support does not understand per diem rules or owner-operator agreements."

Your BEG payroll specialist is your ongoing contact -- not a call center that routes you to whoever is available. When you add a driver, change a per diem structure, or register in a new state, one message to your BEG contact gets it handled.

Getting Started

From scope review to live trucking payroll in 3-5 business days

Day 1
Scope review call

15 minutes. We map your driver roster, per diem structure, multi-state routes, and owner-operator agreements -- and give you a fixed monthly price.

Days 1-2
Onboarding

Agreement signed, system access granted, driver roster and classification structure reviewed.

Days 2-4
Configuration

Per diem pay codes, W-2 and 1099 classification, and multi-state tax registrations configured in your existing system.

Day 5
First live payroll

Your first fully managed trucking pay run -- BEG executes, your team approves. No migration required.

The Math on Waiting

One IRS audit costs more than years of managed payroll.

Driver misclassification audits routinely result in back employment taxes, penalties, and interest covering three to five years. A single reclassification assessment on 20 misclassified drivers can exceed $200,000. Fully managed payroll at $25-$45 PEPM on a 50-driver operation costs $15,000-$27,000 per year -- less than the interest on one audit settlement.

Your Next Transition Window

The best time to fix payroll is before the next audit notice arrives.

Payroll transitions take 30-60 days. Clean cutover at quarter-start or January 1 requires starting the scope review now. Every quarter you defer is a quarter of per diem exposure, misclassification risk, and multi-state filing gaps that compound if the IRS or DOL comes knocking.

15 minutes. We scope your driver roster, per diem structure, and multi-state exposure -- and give you a fixed monthly cost.

FAQ

Common questions from trucking and transportation companies

Can you handle both W-2 company drivers and 1099 owner-operators on the same payroll?

Yes. We manage W-2 payroll processing and 1099-NEC filing for owner-operators in the same pay cycle. We also help you review your classification structure to make sure the line between employee and independent contractor holds up to IRS and DOL scrutiny.

How do you handle per diem pay for long-haul drivers?

We set up your per diem pay codes correctly under IRS guidelines, track eligible days, apply the current per diem rate, and document everything required to keep the payments non-taxable. If your current per diem structure has gaps, we flag them before they become an audit issue.

What multi-state compliance is included?

All of it: state tax registrations, multi-state withholding, quarterly filings, and year-end reconciliation. We cover all 50 states. If your routes create new nexus in a state you have not registered in, we handle the registration as part of the service.

Do we have to change payroll systems?

No. BEG operates as your managed payroll team inside your existing system. Migration is an option if you want to upgrade, never a requirement to get started.

What if driver headcount changes seasonally?

Your monthly rate adjusts with headcount at the same per-employee rate. Seasonal spikes and off-peak reductions update your cost automatically. No renegotiation required.

How do you handle payroll for lease-purchase drivers?

Lease-purchase drivers occupy a gray zone between employee and independent contractor. The structure of the agreement -- not the label -- determines classification. We review your lease-purchase agreements, determine the correct tax treatment for each driver in the program, and process pay accurately. Misclassification of lease-purchase drivers is a frequent IRS and DOL enforcement target in the trucking industry.

Which states create the most payroll tax complexity for trucking companies?

California, New York, Illinois, and Washington have the most aggressive payroll tax enforcement and the most complex apportionment rules for interstate carriers. California in particular has its own driver classification standards under AB5 that are stricter than federal criteria. Multi-state route planning needs to factor in payroll compliance, not just fuel taxes and road fees.

How long does it take to get started with managed trucking payroll?

From signed agreement to live payroll: 3-5 business days. The scope review call is 15 minutes. We review your driver roster, per diem structure, and multi-state routes, then configure everything in your existing system. Most trucking operations are running fully managed payroll within a week of the first call.

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