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Old 10.07.2007
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First full weeks pay...12 cents per mile??
Miles...3440 rate .120 total $412.80
Unloads and stops...$195
Total $668.52
tax/ded -$142.30
Per Diem # .10/mi...$344

NET $870.22

I was supposed to start out at .24/mi. Not good I know but I don't understand this 12 cent crap i see on my pay stub.

Could they be thinking I think that per diem is part of my may rate and only pay me .22/mi and hope I'm too dumb to realize?

Am I actually dumb and missing something here? Shouldn't I have got an extra $412.80 - taxes for the week? I worked my ### off to get so many miles in a week I figure I should get at least my 24 cents. Since then I got another check which is worse but probably still 12 cents.

I'm going to call Monday and see whats up. Anyone know whats going on? Am I being screwed or am I missing something?
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Old 10.07.2007
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That's right. They take out .02 for per diem. That .10 isn't taxed. You actually came out a little ahead by them doing it that way.
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Old 10.07.2007
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What do they take 2 cents off for?
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Old 10.07.2007
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You know I really am not sure to be honest with you. I am sure someone will come along and be able to give you a better answer. Sorry I couldn't help you more.
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Old 10.07.2007
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My experience as well
At my first job, the per diem rate was indeed part of the pay package. I'm not sure about the missing two cents. The twelve cents does seem about right, though.
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Old 10.07.2007
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I guess I'm wrong but I thought I would be getting .24 per mile taxes then an added daily amount(aka per diem). So something like $825 - $260 + $266($38/day*7).

Lol now that I add it up it equals $831 which like you said I did better off they way they calculate it. Thanks for the help I wish I could find out exactly how pay is calculated.
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Old 10.07.2007
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Yeah I use to work for a company that did per diem and they kept .02. I had someone explain it to me but it was so long ago I can't remember exactly what they told me.
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Old 10.08.2007
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The missing two cents probably has more to do with the fact that most companies pay a lower rate if you are on per diem. And, I believe the maximum amount of P.D. you can get is 10 cpm, so if they offered you 24 cpm, but on PD you are making 22 cpm (12+10 cpm PD) then that's pretty close. Odds are you misunderstood what they were telling you, but you should till call them and see if you can get it set straight.

Other than that, sounds like it was all figured out right; I used to be paid on PD, and I remember it looked weird too, not nearly enuff taxes being withheld, but it works out in the end. Just remember that you CANNOT claim any additional PD on your taxes at the end of the year. What does that mean? if means contact your tax professional, or wait and a driver that can explain it better than yours truly will do so.
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Old 10.08.2007
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The 0.02 has some thing to do with taxes. Since your PD isn't taxed then you are paying less taxes there by equaling more take home cash. So the company wants in on the tax cuts too and don't pay you as much.

I'm sure there is a far more detailed answer some where, but that should be the short version.
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Old 10.08.2007
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The small percentage the company kept, is authorized by the IRS. It's sort of like a collection/filing fee the company gets to keep.

Per Diem, is the biggest rip off (IMO) going now days.

You lower your future Social Security benefits, and your unemployment benefits by doing this.

I do understand how you got your original figures though. In the "good old" days, a per diem was an added "bonus" to your pay. X amount of money above what they paid you. This is no longer the case
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