Uber has partnered with a group of car rental companies to hire full-time/part-time Uber Drivers. Known as the Uber’s Exclusive Fleet Partners, these car rental companies will be hiring you and paying you like an employed staff, similar to what HDT Taxi is doing.
What are the benefits of being employed by Uber’s Exclusive Fleet Partners
There are many benefits to becoming an employed driver for Uber’s Exclusive Fleet Partners. The benefits include –
A monthly salary
Performance Based Bonus
Training by Fleet Partners
That is not all! Drivers get to keep the car without paying for rental and gets petrol and parking allowance. Most of Uber’s Exclusive Fleet Partners offer a fixed salary of at least $2500 a month if the driver completes at least 125-135 trips a week. Additional incentives are paid out for trips exceeding the target.
Why is this model good?
After the recent coverage where the authorities have started to work with Uber and Grab in auto-filing drivers’ income, many drivers have been dealt with a rude shock when they realized that may expenses like car rental and petrol cannot be expensed off. As a result, private-hire drivers have to pay up to 8x more taxes than taxi drivers and be liable for a higher Medisave contribution rate due to the higher taxable income.
Private-hire Drivers who are on this employed model can expect to save on their taxes and Medisave contributions.
Assuming all fares and incentives goes to the fleet partner and drivers only draw a salary with bonus, drivers are only taxed on whatever salary amount that is paid to them instead of total fares earned by them. Furthermore, CPF contributions can be claimed as a relief when filing your Notice of Assessment. Private-hire drivers who are self-employed are taxed the entire fare that they have earned and are not allowed to deduct major expenses like car rental and petrol. As a result, this puts them in a higher tax bracket and subjected to pay significantly more taxes.
Private-hire drivers who are self-employed are taxed the entire fare that they have earned and are not allowed to deduct major expenses like car rental and petrol. As a result, this puts them in a higher tax bracket and subjected to pay significantly more taxes.
As an employed driver with Uber’s Exclusive Fleet Partner, drivers are also not required to contribute Medisave as a self-employed person, unlike self-employed private-hire drivers.
Instead, both driver and company will contribute to CPF on a monthly basis.
Should you be in a rush to sign-up?
This program is not made for everyone!
There are many factors to consider such as are you holding a full-time job? How much do you drive and make a month driving? Are you able to meet the requirements set by the Fleet Partners?