We're just curious, but what exactly does this mean? My husband has been driving salary for a long time. We decided to try long haul for awhile. One of the companies we were interested in sent us this in an email....
I would be able to start you at .355/cpm .10 of that is per diem. At this time I do not have a sign on bonus, I do however have a fuel incentive bonus as well as a training program if you were interested in training student drivers.
Any feed back would be greatly appreciated!
Per diem
Discussion in 'Experienced Truckers' Advice' started by 12roses, Feb 25, 2014.
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Taking part of your pay as per diem is a big mistake. What the company is doing is trying to save money by paying per diem. This money is not taxed at the trime it is given, and so the company saves on Social Security taxes, medicare taxes, workers compensation fees, etc;, and thus the driver gets shafted, because he/she does not get credit for their actual earnings.
Plus, it shows as less earnings, so if you try to apply for credit, you may well be denied, as your earnings are not shown to be what they actually are.
Also, if he is hurt on the job, he will get less for workers comp., as that pays around 65-70% of gross earnings, and per diem will not show up as gross for purposes of determining the workers comp rate.
I would never accept a job that pays this way. Never. Period.
He will be able to claim his living expenses at the end of the year when he files his income tax. He will come out way ahead that way. He does not need per diem. If the company insists on paying per diem, tell him to pass on the job. Companies that pay that way are not worth working for. It's their way of trying to show the driver will make more than the pitiful wages they are actually paying them. -
per diem can help in certain cases but like finch said for most of the negatives, it should never be forced though.
As for myself I signed up for per diem a couple months ago and did a lot of calculations, I do get paid more in the end plus it shows less income for child support etc, when it comes time where I want to apply for some type of credit then I will opt out and get those figures up more but im not in the market for anything for awhile.12roses Thanks this. -
The other thing to consider is that the company will most likely be taking a "fee" to "administer" said per diem program....BAD IDEA!!
12roses Thanks this. -
Real Per Diem, is good, not the fake per diem most of these trucking companies pay. The per diem should be in addition to a normal wage, not as part of it. I worked for a company that paid .40 plus cents per mile, and paid a daily per diem rate on top of that.
THAT was the way it was supposed to be paid, not this smoke and mirrors stuff these lousy trucking companies pull.
Trucking pays too little as it is, why work your tail off, and set yourself for a life of poverty, on top of that? (In case you get injured or permanently disabled.)12roses Thanks this. -
FYI, opting out of the per diem, he can itemize at the end of the year. IRS allows a standard meal allowance of $59 PER DAY away from home and allows you to take 80% of that as a deduction on your schedule A. For most drivers, this along with some other deductible expenses such as motels will be more then the standard deduction and that's additional money used to reduce your AGI. I always recommend avoid per diem that most carriers offer if you can. It screws the driver on both ends at the bottom line (tax filing time)
12roses Thanks this. -
FYI u can still file per diem even if you have per diem from your company.
12roses Thanks this. -
Thank you everyone for your feedback. It is greatly appreciated!! I guess we'll keep on looking for now.
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Per diem is a tax befit given to you by the government that allows you an allowance for logging, meals, and incidental excesses, it is not supposed to be there for a company to take advantage of.
Do not let a company take advantage of it for their own benefit. They just use it to make it look like you are making more then you really are while paying less into your Social Security savings and employment accounts.
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