Amazon Flex has its perks and downsides but one thing most Flexers can agree upon is that it’s among the best paying rideshare gigs available.
While some other rideshare drivers are struggling to get by, Amazon boasts that their contractors make between $18 and $25 per hour. With the Prime side of Flex, you have a possibility to make even more than that.
Here’s everything you need to know about Amazon Flex pay.
Amazon Flex pays its contractors twice per week, on Tuesdays and Fridays. Tuesday thru Thursday is paid on Friday, and on Tuesdays you can expect to be paid for blocks completed from Friday thru Monday.
If ever you have trouble with receiving your deposit, it is important to report it as soon as you know there is a problem. Some banks do not process these deposits for twenty-four hours or more, so be patient. If you have not seen a deposit within 48 hours from your notice of the deposit, report the problem using the Earnings feature within the Flex app or reach out to Amazon Flex support for help.
Amazon starts all their independent contractors on a base rate of $18 per hour. No matter what location you’re delivering in, this is the lowest pay rate you’ll receive. Some locations, depending upon cost of living or demand, do offer a higher base rate but for the majority of Flexer $18 is it.
Each market has occasional increases in base rate that occur in cases such as bad weather, higher volume, late trucks, and holidays. It’s not uncommon to see $25 per hour in crunch time, especially around seasons of high demand such as Black Friday or Christmas. Some drivers are willing to take a gamble and hold out until they see increased rates.
In addition to the base rates, Prime Now contractors also receive tips. Amazon Flex does a pretty good job of promoting tipping among customers, and they oftentimes do tip pretty well. However, tt is important to remember that tips are not guaranteed and you should not count on them as part of your income.
Also, since Amazon Flex pays the tips directly to you, they are reported as part of your income. Remember this when filing your taxes.
When tipping, the Prime Now system auto-fills a tip amount into the totals. Prime Now customers have the ability to adjust the tip amounts when the order is created or for twenty-four hours after delivery. When a customer tips, an additional charge to the customer takes place in the tip amount the next day. You may see a delay in tips being added to your pay amounts.
Of the greatest importance to consider is that you are an independent contractor and will receive a 1099 for tax purposes. All income made through Amazon Flex is taxable and needs to be reported. Amazon does not withhold taxes. Setting part of your income back is paramount so you don’t have a monstrous tax bill come tax time.
For tax reasons, deductions are your saving grace. Mileage is likely to be your best deduction toward your income. It will likely reduce your tax burden greatly as long as you maintain accurate mileage records.
There are plenty of apps you can use to track your mileage. The current federal deduction rate for mileage is $0.535 per mile.
Maintenance and repairs on your Flex vehicle are also deductible. In some cases, these issues can be a major expense so prevention is key. Regular oil changes and a common sense approach to vehicle care will save you many headaches. You also want to budget to purchase tires on a more frequent basis.
You are also able to deduct anything related to conducting your business. A portion of your cell phone bill is deductible as it is necessary to participate in the Amazon Flex program. Also, if you purchase any clothing, shoes, or other items strictly for business use; be sure to deduct those items as well.
Overall, I think Amazon Flex is one of the best programs for on-demand drivers. The pay is good, there’s an incredibly robust and comprehensive system supporting drivers, and customers are encouraged to tip. Yes, blocks can be hard to get sometimes, but overall, this truly is a great way to make extra money on the side.
Do you make more than the advertised rate for Amazon Flex drivers? In your area, how much do Amazon Flex drivers make in your area? Drop a comment below and let us know!