Neither. Exec user here.
$25/hr flat rate + 3% surcharge of what you buy + gas mileage where applicable (forgot the rate for that)
So for example if I hire someone to just sit there and answer phones all day, no purchases or traveling was required, its just $25/hr.
If I wanted someone to go pick up my dry cleaning, I'd have to pay for $25/hr plus gas mileage cost (from the dry cleaners to drop off point) plus whatever dry cleaning cost is including a 3% surcharge of THAT price. So assume dry cleaning was $10, that comes out to $0.30 surcharge. The surcharge is not base on the hourly rate.
Now that has been changed to $30 and 10% respectively, same rules.