5 Warning Signs Your Relocation Payments Aren't Being Calculated Correctly

In the complex world of relocation services, ensuring accurate payment calculations can be challenging. Whether you're an owner operator completing 75-125 jobs annually or a carrier-agent managing multiple service providers, these five warning signs could indicate you're not receiving your full compensation.

1. Inconsistent Payment Percentages on Distributable Revenue

Red Flags:

• Fluctuating percentages without explanation

• Unclear basis for calculations

• Missing documentation for rate changes

What to Watch: Compare your payment percentages across similar services. If you notice unexplained variations, it's time for a closer look. For owner operators, this is particularly crucial when your contract specifies payment based on distributable revenue.

2. Missing or Reduced Pass-Through Payments

Warning Signs:

• Partial payments for crating services

• Incomplete fuel surcharge compensation

• Unexplained deductions on additional services

Remember: Since the 2019 400NG changes, pass-through services must be paid in full. Any reduction in these payments should raise immediate concerns.

3. Delayed or Vague Payment Explanations

Look For:

• Extended wait times for payment clarifications

• Generic responses to specific questions

• Inability to provide detailed breakdowns

Industry Insight: While the peak season (April to September) can cause some delays, consistent issues with payment explanations often indicate deeper problems.

4. Mismatched Service Records and Payments

Watch For:

• Payments that don't reflect all services provided

• Missing compensation for additional labor

• Incomplete shuttle service payments

Pro Tip: Keep detailed records of every service provided, including dates, locations, and any additional requirements. This documentation is your first line of defense against underpayment.

5. Recurring "Administrative Adjustments"

Be Wary Of:

• Frequent small deductions

• Unexplained administrative fees

• Consistent rounding down of payments

The Impact: Even small discrepancies can add up significantly. For example, a recent analysis revealed $14,000 in underpayments across just 156 shipments – imagine what you might find in your payment history.

Taking Action

If you recognize any of these warning signs, consider these steps:

1. Document Everything

• Keep detailed service records

• Save all payment statements

• Record communication about payments

2. Review Historical Payments

• Look for patterns of underpayment

• Compare similar service payments

• Track pass-through service compensation

3. Understand Your Rights

• Know your contract terms

• Understand industry regulations

• Recognize payment requirements

4. Seek Professional Verification

• Get expert payment analysis

• Maintain industry relationships

• Recover rightful compensation

The Bottom Line

In the relocation industry, every dollar counts. While managing daily operations, it's easy to miss these warning signs. However, identifying them early can prevent significant revenue loss and ensure you receive proper compensation for your services.

Don't Leave Money on the Table

If you've noticed any of these warning signs in your payment calculations, it's worth investigating further. Professional payment verification can help you recover underpayments while maintaining positive industry relationships.

 
Concerned about your payment calculations? Contact us for a confidential review of your situation and learn how we can help secure your rightful compensation.