Should I have canceled my Per Diem?

Discussion in 'Questions From New Drivers' started by Twitch, Jan 1, 2011.

  1. Twitch

    Twitch Bobtail Member

    17
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    Jan 1, 2011
    Somewhere, Fl
    0
    Good Evening All,
    Recently, I took a train the trainer course for the company I work for. The saftey person who held the class, who has been driving/working for my company for 22 years suggested I should cancel my Per Diem. Now I have done so, but am not sure I made the right choice. The company I work for docks our pay a penny a mile if we take it, and on my pay stub it shows I make around 12 cents a miles, with a 17 cent per diem rate. Is it worth keeping or just leaved it alone.

    Thanx,
    Twitch
    Happy New Year to all
     
    Last edited: Jan 1, 2011
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  3. 123456

    123456 Road Train Member

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    Geeze, where do you work...CF ?????
     
  4. Twitch

    Twitch Bobtail Member

    17
    3
    Jan 1, 2011
    Somewhere, Fl
    0
    Id rather not say tbh. However, its one of the largest.

    Werner. I live in Florida, trucking jobs are diffuclt to find down there. Was driving local for 10 month, got laid off and here I am.
     
    Last edited: Jan 1, 2011
    123456 Thanks this.
  5. Corporal_Clegg

    Corporal_Clegg Road Train Member

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    Raleigh,NC
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    They dock your pay for taking per diem? Thats kinda goofy I think. And you have 2 years exp and only making 29 cpm? Like 123456 said ... where do you work?
     
  6. 123456

    123456 Road Train Member

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    Let us know where you live in florida,

    there may be a better company near you.

    If you're interested.........
     
  7. Twitch

    Twitch Bobtail Member

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    Jan 1, 2011
    Somewhere, Fl
    0
    Near Lakeland.
     
  8. 123456

    123456 Road Train Member

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  9. jlkklj777

    jlkklj777 20 Year Truckload Veteran

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    Per diem is a scam (IMO). You are currently entitled to deduct 80% of 59.00 per day for each day you are away from your tax home (provided you need a "rest break" before returning home).

    When a carrier offers a per diem plan it is usually designed to save the carrier a boat load of cash. They do not have to match the social security or medicare on the "per diem." In the event you wind up unemployed the "benefit" you receive will be based on your taxable earnings. The same goes for a workers comp claim. The per diem money will not be considered at all.

    The fact that you "gave up" a penny per mile for the "privelage" of getting this deduction all during the year is ludicrous.

    Your trainer was right. The only benefit I can see to accepting a per diem plan through a carrier is if you are intentionally trying to under report your earnings or you are too lazy to itemize your tax return. Intentionally under reporting your gross earnings may be beneficial in a bankruptcy or attempting to reduce your child support/alimony payments.
     
    Corporal_Clegg Thanks this.
  10. WMGUY

    WMGUY Road Train Member

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    Jan 1, 2011
    Nine Mile Falls, WA
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    i agree that per diem is a scam!!! just take it on your taxes at the end of the year and get what you are suppose to get and not worry about it
     
  11. deerslayer1543

    deerslayer1543 Light Load Member

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    Jan 21, 2010
    topeka kansas
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    I dont understand all this per diem crap.My company pays us per diem and Im happy about it.I get .27 cpm hub miles plus 39$ a day for every day out paid in a tax free check once at the end of every month.How is this a bad thing?
     
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