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independent contractor deposits

Employee payment models don’t fit the fast-paced nature of the gig economy. As a result, utilizing an independent contractor workforce may make sense for some businesses. In a fiercely competitive world, how can you best manage deposits for independent contractors to encourage retention?  Quick, consistent, and competitive deposits is one of the best ways to retain your independent contractor workforce. 

How does this translate to actionable steps your business can take?  We broke down payments and deposits for independent contractors to help your business thrive while utilizing an independent contractor workforce.

Competitive Deposits

What’s the best way to empower independent contractors but maintain a steady income for your business? Consider the following:

  • What is your base rate and per delivery fee? Does your delivery fee deter potential customers by being too high or is it too low and discourages your independent contractors from completing deliveries?
  • Consider size of deliveries, risk upon drivers, etc. 
  • Will you pay per mile, per number of stops, per drop, per job etc. 
  • Does the route drivers pick out make sense for them?
Quicker Deposits

Ultimately, quicker deposits translates to less stress. Therefore, the sooner people receive payment for the work they’ve done, the happier they are, making for better workforce retention.  Staying current with payment trends is important to supporting your independent contractors. Working with a third-party administrator like Delivery Drivers, Inc. simplifies independent contractor deposits. DDI also offers faster deposits that are available several days earlier than traditional Friday deposits, striving to help driver-partners get their hard earned money faster.


Offering bonuses and incentives seems like an easy way to encourage your independent contractors to work hard.  However, you have to be careful with incentives to respect the relationship between you and the independent contractors.  For some businesses, rebates make sense however always reach out to independent contractor management companies like DDI to ensure compliance and mitigate risk.  


Some platforms didn’t always allow for tipping and that set the marketplace up for confusion.  Above all, drivers should always keep 100% of their tips. Ultimately, tips, in their own way, act as an incentive for drivers. Drivers that receive more tips are more likely to work more.  What are best practices to encourage tipping?  Clients have control over the default percentages on POS systems. Subsequently, this makes it easier for customers to tip drivers. But, businesses should be aware that each state and sometimes cities and counties have laws about tip minimum wages.  Sound confusing? Partnering with DDI can reduce this confusion. Our account managers are experts in state by state regulations. As a result, they can help your business navigate paying independent contractors and handling tips.  In fact, we encourage our clients to process tips through us so they are included in drivers’ tax packets.      

Outsourcing Pay

Still not confident in deposits for independent contractors? Give Delivery Drivers, Inc. a call! Outsourcing deposits and pay to an HR partner like DDI has many benefits including risk mitigation.  Contact us today to learn more about how DDI can help your business. 

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