Road Ready Guide · Settlements
How to read a carrier settlement sheet, line by line
Short answer: A settlement sheet starts with your gross earnings for the week, subtracts the carrier's deductions (insurance, plates, tolls, escrow, equipment charges), adds any expense reimbursements, and ends with your net pay. Gross plus reimbursements minus deductions must equal net. If it doesn't, something was misread.
The four parts of every settlement sheet
- Gross earnings. Trip pay (often a percentage of line-haul revenue), fuel surcharge, and accessorials such as tolls billed through. This is the number your 1099 adds up.
- Settlement deductions. What the carrier takes out: truck insurance, license plates, toll transponder charges, event recorder or ELD fees, fuel advances, IFTA payments, escrow.
- Expense reimbursements. Money the carrier pays back to you, such as an IFTA refund. These add to your net.
- Net earnings. What lands in your bank account, usually several days after the pay-period date.
Many sheets also print a year-to-date gross and an escrow balance. Keep both; they're the two numbers you'll check your books against.
An example, with made-up numbers
| Line | Amount |
|---|---|
| Gross earnings (trip pay + fuel surcharge + tolls) | $6,000.00 |
| Toll transponder charges | −$120.40 |
| Truck insurance | −$185.00 |
| Escrow payment | −$100.00 |
| Event recorder charge | −$6.00 |
| Total deductions | −$411.40 |
| Net earnings (your deposit) | $5,588.60 |
The one math check that catches errors
Gross ($6,000.00) plus reimbursements ($0) minus deductions ($411.40) equals net ($5,588.60). Then check that the deduction lines add up to the deduction total. Ours do: $120.40 + $185.00 + $100.00 + $6.00 = $411.40. When a sheet fails either check, a line was misread, missed or counted twice. We run this check on every sheet before anything is recorded.
How each line belongs in your books
- Gross earnings → income, at the full gross amount, not the deposit.
- Tolls → tolls expense. Insurance → insurance expense. Plates → registration expense. Event recorder → equipment or subscriptions expense.
- IFTA payments or refunds → fuel tax, against your fuel costs.
- Escrow → an asset account. It's still your money, held by the carrier, and usually refundable when you leave.
- Carryovers to or from the next settlement → timing only. They net out between weeks.
Recorded this way, the net equals your bank deposit to the penny, and your income equals what the carrier reports on your 1099. Here's why the 1099 and the deposits differ, and the chart of accounts we use.
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Get a free books check See pricingCommon questions
What is a settlement sheet in trucking?
It's the weekly pay statement a carrier gives a leased owner-operator: gross earnings, the carrier's deductions, any reimbursements, and the net amount paid.
Why is my settlement net lower than my gross?
The carrier subtracts what it pays on your behalf, such as truck insurance, plates, tolls, equipment fees and escrow, before paying you the net.
Is escrow an expense?
In your books, escrow is an asset: money that's still yours, held by the carrier. Whether and how it affects your taxes is a question for your tax preparer.
Should I record the net deposit as income?
Recording only the net makes your income lower than your carrier's 1099. Record the gross, then each deduction in its own account, so the books match both the bank and the 1099.
How do I check a settlement sheet for errors?
Gross plus reimbursements minus deductions must equal net, and the deduction lines must add up to the deduction total. If either check fails, look again.