What is gross stock?
Gross stock is the starting number for every crew share calculation. It is the total dollar value of your catch as recorded on your fish ticket - the weight of fish delivered multiplied by the ex-vessel price the processor paid you.
Example: You deliver 47,000 pounds of sockeye salmon to Peter Pan Seafoods in Naknek. The ex-vessel price is $1.05 per pound. Your gross stock is $49,350.
If you made multiple deliveries on the same trip, gross stock is the sum of all fish tickets for that trip.
What are shared expenses?
Shared expenses are costs that get deducted from gross stock before the vessel and crew split the remainder. Which expenses are shared - and which the vessel absorbs alone - depends on your crew agreement.
| Expense | Shared or Vessel-Only | Notes |
|---|---|---|
| Fuel (diesel) | Often shared | Must be in crew agreement |
| Ice | Often shared | Varies by fishery |
| Bait | Often shared | Common in salmon |
| Observer fees | Vessel-only | Captain pays in most cases |
| Processor fees | Vessel-only | Not deducted before split |
| IFQ cost recovery | Vessel-only | Deducted from vessel share |
How the vessel share works
After shared expenses are deducted from gross stock, the remaining amount - called net stock - is split between the vessel and the crew. The vessel's cut is called the vessel share.
The vessel share pays for fixed costs the vessel owner carries: insurance, loan payments, maintenance, depreciation, and permits.
Equal split. Gross stock minus shared expenses, split 50/50 between vessel and crew.
Vessel takes a larger share due to permit and quota costs. Crew pool is 40–45% of net stock.
Varies by region and vessel. Pacific coast boats commonly run 50%.
IFQ quota costs often increase vessel share. Verify your specific agreement.
Standard equal split is most common in Gulf shrimp fisheries.
How the crew pool is divided
The crew pool is what's left after the vessel takes its share. This is the total amount available to pay all crew members combined.
Crew Pool = Net Stock × (1 − Vessel Share %)
Once you have the crew pool, you divide it by the total number of share units across your entire crew. The result is the dollar value of one share unit. Every crew member gets paid based on how many share units they hold.
Value Per Share Unit = Crew Pool ÷ Total Share Units Individual Pay = Value Per Share Unit × Crew Member's Share Units
Understanding share units
Share units are how commercial fishing distributes the crew pool unevenly - rewarding experience, responsibility, and specialized skills.
| Position | Standard Share Units | Notes |
|---|---|---|
| Captain (fishing) | 1.0–2.0 extra | On top of vessel share |
| Engineer | 1.5 | Machinery responsibility |
| Experienced hand | 1.0–1.25 | Varies by vessel |
| Standard deckhand | 1.0 | Base share |
| Greenhorn | 0.75 | First-season crew member |
| Cook (if crew) | 0.5–1.0 | Sometimes flat rate instead |
The full calculation, step by step
Here is the complete sequence for every crew share calculation:
- 1Start with gross stockThe total fish ticket value for the trip.
- 2Subtract shared expensesOnly expenses documented in the crew agreement. Result: Net stock.
- 3Calculate vessel shareNet Stock × Vessel Share % = Vessel Share Amount
- 4Calculate crew poolNet Stock − Vessel Share Amount = Crew Pool
- 5Sum all share unitsTotal Share Units = sum of all crew share units
- 6Calculate value per share unitCrew Pool ÷ Total Share Units = Value Per Unit
- 7Calculate each crew member's gross payValue Per Unit × Individual Share Units = Gross Pay
- 8Apply advances and deductionsGross Pay − Advances − Other Deductions = Net Settlement
Bristol Bay salmon example
F/V Naknek Queen - 2026 season trip
| Name | Units | Value/Unit | Gross Pay |
|---|---|---|---|
| Pete Larson | 1.0 | $24,141.18 | $24,141.18 |
| Ana Reyes | 1.0 | $24,141.18 | $24,141.18 |
| Tom Birch | 1.5 | $24,141.18 | $36,211.76 |
| Jesse Wu | 0.75 | $24,141.18 | $18,105.88 |
| Total | 4.25 | $102,600.00 |
Alaska king crab example
F/V Arctic Rose - BSAI opener
Note: observer fees are vessel-only in most crab agreements.
| Name | Units | Value/Unit | Gross Pay |
|---|---|---|---|
| Mike Sorenson | 1.5 | $22,344.00 | $33,516.00 |
| Dave Kowalski | 1.0 | $22,344.00 | $22,344.00 |
| Ricky Tran | 1.0 | $22,344.00 | $22,344.00 |
| Carlos Mendes | 1.0 | $22,344.00 | $22,344.00 |
| Luis Herrera | 0.75 | $22,344.00 | $16,758.00 |
| Bobby Strand | 0.75 | $22,344.00 | $16,758.00 |
| Total | 6.0 | $134,064.00 |
Owner-operator: when the captain also fishes
Many commercial fishing captains own their vessel and also work as active crew. In this case, the captain receives two forms of compensation from the same trip:
The vessel share goes to the vessel (which the captain owns). The captain also participates in the crew pool as an active crew member, receiving share units like any other deckhand - typically 1.0 to 1.5 units depending on the vessel agreement.
This is not double-dipping. The vessel share compensates the asset. The crew share compensates the labor. They are different things and should be documented separately on the settlement sheet.
What goes on a settlement sheet
A crew settlement sheet is a legal document. It is how a crew member proves their income to the IRS, to a bank when applying for a loan, and in any pay dispute. Every settlement sheet should include:
- Vessel name and USCG documentation number
- Trip start and end dates
- Processor name and fish ticket number(s)
- Gross stock amount with species breakdown
- Itemized shared expense deductions
- Vessel share percentage and dollar amount
- Crew pool total
- Each crew member's name, share units, and gross pay
- Any advances or deductions with explanations
- Net settlement amount per crew member
- Employment classification (1099 or W-2)
- Signature line for each crew member
- Captain's signature
1099 vs. W-2: which applies to your crew?
Most commercial fishing crew members are classified as 1099 independent contractors. However, the classification depends on the specifics of the working arrangement - not on what you prefer or what's easier.
- • Crew member paid a share of the catch
- • No guaranteed minimum pay
- • Crew member controls their own work methods
- • No employer payroll tax withholding
- • Captain issues Form 1099-NEC at year end
- • Most common in salmon, crab, halibut, shrimp
- • Crew member paid hourly or flat rate
- • Employer withholds federal and state income tax
- • Employer pays 7.65% FICA match
- • Captain issues W-2 at year end
- • More common on processing vessels and some union boats
Common mistakes captains make
The shared expense deductions must come out before the vessel/crew split - not after. Splitting first, then deducting expenses from the crew's share is mathematically wrong and will overpay or underpay crew members.
If fuel is a shared expense, that has to be in writing before the trip. The IRS and any crew dispute arbitration will ignore verbal agreements.
A $30,000 advance from a Bristol Bay processor comes off the crew settlement at season end. If you don't track it in writing with the crew member's acknowledgment, you cannot legally deduct it.
1099 is correct for most share-based crew, but not all. Flat-rate crew on some vessels may qualify as W-2 employees. The IRS knows the difference.
An unsigned settlement sheet is better than nothing. A signed one is the only thing that protects you when a crew member claims they were paid less than they're owed.
Calculate your crew share
Put this math to work on your actual trip numbers.
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