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Trucking & Transportation Companies: Payroll Features Every Business Needs (2026)
Trucking companies need payroll configured for per-diem pay for drivers, owner-operator vs W-2 classification and DOT compliance, pay codes that general-purpose software leaves to the customer to build. BEG runs trucking company payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Pay codes a trucking company cannot run without
Trucking companies pay OTR drivers and local drivers on different bases, and the payroll system has to hold every one of them as its own pay code with the right tax and overtime treatment: per-diem pay for drivers, owner-operator vs W-2 classification, DOT compliance and mileage reimbursement. A generic setup collapses these into hourly and salary, and the errors show up in the regular rate, in year-end forms and in the first wage claim.
Section 13(b)(1) of the FLSA provides an overtime exemption for employees of motor carriers and motor private carriers who work as drivers, driver's helpers, loaders or mechanics and whose duties affect the safety of operation of motor vehicles in interstate or foreign commerce.
The small vehicle exception restores FLSA overtime in any workweek in which the employee performs work on motor vehicles weighing 10,000 pounds or less, except vehicles designed to carry more than 8 passengers for compensation, more than 15 passengers, or placarded hazardous materials.
Tax handling specific to trucking companies
For travel on or after October 1, 2025, the special meals and incidental expenses rate for the transportation industry is $80 per day within the continental United States and $86 per day outside it. Notice 2025-54 supersedes Notice 2024-68, which covered October 1, 2024 through September 30, 2025.
What is configured before the first run
At implementation every pay structure above is built as a code with its own taxability, its own overtime treatment and its own W-2 mapping, and the exemption status of OTR drivers and local drivers is documented against the rule that supports it. That is the difference between software with the features and a payroll that uses them correctly.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Section 13(b)(1) of the FLSA provides an overtime exemption for employees of motor carriers and motor private carriers who work as drivers, driver's helpers, loaders or mechanics and whose duties affect the safety of operation of motor vehicles in interstate or foreign commerce. [DOL Fact Sheet #19]
- The small vehicle exception restores FLSA overtime in any workweek in which the employee performs work on motor vehicles weighing 10,000 pounds or less, except vehicles designed to carry more than 8 passengers for compensation, more than 15 passengers, or placarded hazardous materials. [DOL Fact Sheet #19]
- For travel on or after October 1, 2025, the special meals and incidental expenses rate for the transportation industry is $80 per day within the continental United States and $86 per day outside it. Notice 2025-54 supersedes Notice 2024-68, which covered October 1, 2024 through September 30, 2025. [IRS Notice 2025-54]
Read the full guide to every managed payroll feature, explained, and the rest of the trucking company payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Can you handle per-diem pay for OTR drivers?
Yes. Per-diem is set up as a non-taxable allowance at the IRS-approved transportation industry rate ($80 per day in the continental U.S. for October 2025 through September 2026, per IRS Notice 2025-54). We track per-diem days separately and produce correct W-2 treatment.
How do you handle owner-operators vs. W-2 drivers?
Owner-operators are processed as 1099 independent contractors; W-2 drivers run through regular payroll. We maintain correct classification documentation to withstand an IRS or DOL audit.
Can you handle payroll for drivers in multiple states?
Yes. Multi-state driver payroll, including resident state income tax withholding, is handled automatically. We file in each applicable state.
What does BEG charge for trucking company payroll?
Trucking payroll runs at $45 per employee per month. For a 20-truck fleet with 25 W-2 employees, that is approximately $1,125 per month covering payroll, tax filing, per-diem administration, and W-2s.
What does managed payroll cost for a trucking company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Per-diem pay for drivers, owner-operator vs W-2 classification and DOT compliance are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Trucking & Transportation Companies. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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