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FleetWage

FedEx ISP Payroll Calculator

Simulate how FleetWage calculates FedEx Ground driver pay — weekly rate, daily rate, per-stop pay, stop threshold bonuses, Back Into Rate overtime, 6th day bonuses, and more. Adjust the numbers and see results in real time.

Rate Configuration

Base Pay

$
$
$

Per Stop

$/stop

Bonuses

$
$

Stop Threshold

stops
$/stop

Overtime

Weekly Schedule

$370.00
$360.00
$380.00
$365.00
$390.00

Pay Summary

Base Pay

$1,800.00

Bonus + OT

+$168.61

Total Pay

$1,968.61

Hours:45.0h
OT Hours:5.0h
Effective Rate:$43.75/hr
DayBaseBonusTotal
mon$360.00+$10.00$370.00
tue$360.00$360.00
wed$360.00+$20.00$380.00
thu$360.00+$5.00$365.00
fri$360.00+$30.00$390.00
Overtime Premium (5.0h)+$103.61
Total Weekly Pay$1,968.61
Back Into Rate — how overtime was calculated
1. Total weekly earnings (before OT)$1,865.00
2. Total hours worked45.0h
3. Regular rate = $1,865.00 ÷ 45.0h$41.44/hr
4. Overtime hours = 45.0h − 40h5.0h
5. OT premium = 0.5 × $41.44 × 5.0h$103.61

What is "Back Into Rate"? In the FedEx ISP industry, this method is called "backing into the rate" because you work backwards from total weekly earnings to derive the hourly rate. Unlike a fixed hourly rate, the regular rate changes every week based on actual earnings and hours worked.

Why 0.5x instead of 1.5x? This is the FLSA half-time method. Since the driver's base earnings already cover straight time for all hours (including overtime hours), only the additional half-time premium (0.5x) is owed on OT hours — not the full time-and-a-half.

Total weekly pay$1,968.61

This is just the basics

FleetWage supports 50+ rate types including per-package rates, ILS incentives, Code 85 penalties, daily overtime, and more — all with automatic FLSA compliance.

50+ Rate Types. All Automated.

FleetWage supports every pay structure FedEx ISP contractors use — from simple weekly rates to complex performance-based incentives and penalties.

Base Compensation

  • Weekly Rate
  • Weekly Rate Cap
  • Daily Rate
  • Hourly Rate
  • Paid Time Off (PTO)
  • Training Rate
  • Work Area Rate

Per Stop & Package

  • Delivery Per Stop
  • Pickup Per Stop
  • E-commerce Per Stop
  • Delivery Per Package
  • Pickup Per Package
  • E-commerce Per Package

Bonuses & Overtime

  • 6th Day Bonus
  • Saturday Bonus
  • Sunday Bonus
  • Back Into Rate (OT Calculation)
  • Weekly Overtime (FLSA)
  • Daily Overtime
  • Holiday Premium Pay

Threshold Bonuses

  • Stop Threshold (multi-tier)
  • Per-Stop Bonus Above Threshold
  • Weekly Threshold
  • Package Threshold
  • Per-Package Bonus
  • Count Pickup Stops Option

Performance Incentives

  • Inbound Local Scan (ILS) Bonus
  • ILS % Threshold
  • Amount or Percentage Mode
  • Cap Reduction to Incentives
  • Performance Multipliers

Penalties & Reductions

  • ILS Scan Reduction
  • Code 85 (Delivery Issues)
  • All Status Code Packages
  • Did Not Attempt (DNA)
  • Missed Pickup
  • Early/Late Pickup

This calculator demonstrates a subset of FleetWage's capabilities. The full platform handles all 50+ rate types with automatic FLSA compliance.

See the Full Platform

Why Accurate Payroll Matters for FedEx ISPs

Payroll errors are the #1 source of DOL complaints in the delivery contractor industry. Understanding how pay calculations work is the first step to staying compliant.

Common Payroll Mistakes

  • Using per-stop rate as the overtime rate — the regular rate must be recalculated weekly based on total earnings divided by total hours
  • Excluding bonuses from overtime calculations — 6th day bonuses, attendance bonuses, and peak premiums are non-discretionary and must be included
  • Not tracking hours for per-stop employees — FLSA requires tracking hours for all non-exempt employees, even if paid per-stop
  • Averaging hours across pay periods — overtime must be calculated per workweek, never averaged across multiple weeks

Frequently Asked Questions

How does per-stop pay work for FedEx drivers?

Per-stop pay means drivers earn a fixed dollar amount for each delivery stop. Most ISPs use tiered thresholds — for example, $1.50/stop for the first 80 stops, $1.75 for stops 81–120, and $2.00 for 121+. This aligns driver pay with productivity and mirrors how FedEx pays ISPs.

What is Back Into Rate and how does it work?

Back Into Rate (also called the FLSA half-time method) is how FedEx ISP contractors calculate overtime for non-hourly drivers. You 'back into' the hourly rate by dividing total weekly earnings by total hours worked — this gives you the regular rate, which changes every week. The overtime premium is then 0.5× the regular rate × overtime hours (not 1.5×, because the base pay already covers straight time for all hours). FleetWage automates this calculation automatically.

How is overtime calculated for per-stop (piece-rate) employees?

Under FLSA, you first calculate the regular rate by dividing total weekly earnings (including non-discretionary bonuses) by total hours worked. Then the overtime premium is 0.5× the regular rate × overtime hours. This is the Back Into Rate method — it's 0.5× (not 1.5×) because the base earnings already cover straight time for all hours.

What bonuses should be included in overtime calculations?

All non-discretionary bonuses must be included: 6th day bonuses, attendance bonuses, peak season bonuses, and package volume bonuses. Only truly discretionary bonuses (like a surprise year-end bonus) can be excluded.

What is a hybrid/guarantee pay model?

A hybrid model combines per-stop pay with a daily minimum guarantee. The driver receives whichever amount is higher each day — their per-stop earnings or the guaranteed daily rate. This protects drivers on low-volume days while still incentivizing productivity.

Is this calculator accurate for compliance purposes?

This calculator demonstrates how FleetWage computes driver pay using standard FLSA rules. For actual payroll processing with state-specific compliance, tax withholdings, and audit-ready records, schedule a demo to see the full FleetWage platform.

Ready to automate your payroll?

FleetWage processes payroll for thousands of FedEx drivers every week. Per-stop tiers, overtime, bonuses, multi-state compliance — all handled automatically.