Pay Rates

Discussion in 'Experienced Truckers' Advice' started by Hang Man 2010, Apr 21, 2013.

  1. Hang Man 2010

    Hang Man 2010 Bobtail Member

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    Jul 18, 2012
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    Hey. I'm currently attending school and I have a question and hope to get the best answers from the experienced truckers in regards to pay & taxes. Listed below are the options I have with a company and would like some feedback. I've researched and keep hitting brick walls when trying to figure which is the best route for me to take. I hear per diem is good in a sense because I will be offered more vacation time and get the $.10 per mile before taxes, but then I understand it benefits the company more than the driver. Is that correct? I know it lowers my SSI, workman's comp (if injured) and unemployment (I hope not) and also will be accounted for if I want to purchase a car or by a home. On straight pay I understand that I will show a higher taxable income and will help me for purchasing a home or car and is more beneficial to the driver. If some could share some feedback and explanations why I would greatly appreciate it. I don't plan on taking a vacation in the near future so I don't really care about the extra week vacation the company offers as an incentive. I have talked one company driver and was informed he changed from per diem practical to straight hhg due to the pay and most drops are close the the main highways that getting the extra pay per mile is worth it.
    Thanks in advance.

    PER DIEM PAY RATES (* On the per diem scale, drivers receive $.10 per mile before taxes)

    PER DIEM PRACTICAL
    $.28 PAY BASED ON RAND MCNALLY PRACTICAL MILEAGE GUIDE

    PER DIEM HHG
    $.30 PAY BASED ON RAND MCNALLY HHG MOVERS GUIDE


    STRAIGHT PAY RATES

    STRAIGHT PAY PRACTICAL
    $.33 PAY BASED ON RAND MCNALLY PRACTICAL MILEAGE GUIDE

    STRAIGHT PAY HHG
    $.35 PAY BASED ON RAND MCNALLY HHG MOVERS GUIDE
     
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  3. Starboyjim

    Starboyjim Road Train Member

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    Weed, CA
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    Don't forget to subtract the fee for per diem. It is a $.10/mile, but there's a Page Two. The companies charge a "handling fee" for the per diem bookkeeping. The company I worked for charged $.015, which meant they took $.10/mile out of my pay, but only put back $.085/mile. In other words I paid a 15% premium to the company for bookkeeping. The wise say "per diem is for people who can't manage accurate receipts." That's true. Last comment, I did the per diem because I knew I'd owe federal taxes. I did owe, turned out $980. But, the lower earned income also is the reason I now can't qualify for those lovely 3.7 or 3.15 (15yr fixed) refi loans. So I saved a bit, but will have to wait on the much bigger interest reduction on my real property loans. FYI
     
  4. slim shady

    slim shady Road Train Member

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    Chicago, Il.
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    I think I know who your going to work for.
    I am on straight pay with HHG,Running regional the miles at times are pretty equal to what I'm driving(according to my gps)
    Sometimes not, For the most part I'm good with it.
    With Per diem you are making 5 cpm less, for an extra week of vacation and 2 cpm saftey bonus, Thats 3 cpm your leaving behind( 3-4000.00 a year) You can still take your per diem at the end of the year.
     
  5. Richter

    Richter Road Train Member

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    Philadelphia Pa
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    Best way is dont take perdiem form the company and file it with your taxes. No fees from company and you get 100% of what your supposed to. Just keep track of how many nights a year your away from home. No need to count miles as irs perdiem is/day not per mile.

    asiest way take it from the company and don't worry about it, although you may not save as much. If they do it per mile, they are just taking the daily and dividing it out by average daily miles.
     
  6. Hang Man 2010

    Hang Man 2010 Bobtail Member

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    Jul 18, 2012
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    Don't know if this will help.
    http://www.millistransfer.com/driver-opportunities/driver-pay/ (This shows the safety bonus on both per diem and non.)

    Non-Per Diem
    http://new.millistransfer.com/driver-opportunities/driver-pay/per-diem/

    Per Diem
    http://new.millistransfer.com/driver-opportunities/driver-pay/non-per-diem/

    Even just figuring at a 2500/week the pay different for the year is quite a difference for per and non per. Even including the safety bonus it's still quite a difference. Which option would you guys think is the best route given these options. I think the biggest positive is if I want to purchase a home in the future for showing taxable wage. The extra income for the year plus being able to claim food at tax time would be a big benefit in a years time.

    Thanks for the responses btw.
     
  7. slim shady

    slim shady Road Train Member

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    Chicago, Il.
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  8. Pound Puppy

    Pound Puppy Heavy Load Member

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    Amherst, OH
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    Dont take per diem. It does benefit the company as they claim say .15cpm and give you .10vpm. Plus it will pretty much gaurantee a tax refund at the end of the year.
     
  9. carrkool

    carrkool Heavy Load Member

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    adah, pa
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    dont take it. all the things you talked about plus the reduced claimable income for your personal life when if you wait till tax time you can claim each day away from ho me from your logs which is 55 bucks a day and pay pre diem avgs 53 a day. the companies push on it because it saves them. by federal laws they must match so much to you ssi and WC and so on. but if you dont show as much than they dont pay as much than 30 years down the road you get 500 a month ssi check...if your lucky.....
     
  10. carrkool

    carrkool Heavy Load Member

    883
    494
    May 10, 2012
    adah, pa
    0
    dont take it. all the things you talked about plus the reduced claimable income for your personal life when if you wait till tax time you can claim each day away from ho me from your logs which is 55 bucks a day and pay pre diem avgs 53 a day. the companies push on it because it saves them. by federal laws they must match so much to you ssi and WC and so on. but if you dont show as much than they dont pay as much than 30 years down the road you get 500 a month ssi check...if your lucky.....
     
  11. windsmith

    windsmith Road Train Member

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    Pass on that company; you'll be lucky to take home $400 / week.
     
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