Originally Posted by TurboTrucker

Actually, she is a native North Carolinian, but has spent most of her life in Tennessee....

I didn't realize it, but you and I live about 25 miles from each other....

Okay...the way most per-diem deals work, and I'll use an example for this, is like this...

Let's say that a driver is paid .30 a mile, and the per-diem rate is 7 cents per mile.

On the settlement sheet, you should see where the driver is paid .23 a mile for all the paid miles that he runs. This section is usually detailed to reflect the trips and mileage figures. In another section, you should see the per-diem figures, with NO detail, but the mileages should be able to be matched up to the detailed section, and of course, this should be at the per-diem rate, of 07 a mile in my example. Added together, they should total .30 for all paid miles (in your case, .195 a mile).

Now...the way per-diem works, this .07 a mile is set aside, and no payroll taxes are assessed on this amount. It is added back into the net pay, after taxes are taken out on the .23 a mile plus any other accessorial pay items (detention, extra stop pay, etc.). The .23 a mile is reflected on the W-2 form at the end of the year as part of the gross pay (along with accessorial pay). Most companies report the per-diem amount in box #14 on the W-2 form.

What this means, is that the company in essense, is claiming to reimburse the driver for a portion of their road and meal expenses, and this is in the form of tax free money paid to the driver. In reality, it is a legal ploy to save the company on a part of their portion of the 7.5% (apprx) of the Social Security taxes that they are supposed to suppliment, PLUS they get to claim reimbursements that are written off their taxes. Another drawback to the employee, is that their future benefits are reduced, because it appears on paper that you made less than you actually did, and therefore, less money was paid into the employee's Social Security account over the year, both by the company and the employee.

Short term, the employee saves on payroll taxes, just as the company does, but the long term effect could reduce what the employee will draw at retirement age. I suppose to decide if it's a good or bad thing, it would depend on how much a person will have to depend on their Social Security to support them upon retirement.

There's a couple of ways to handle this at tax time, since transportation workers are allowed a generous write-off for meals and incidental expenses, and there is a way to recoup some of this, in the form of a savings on your taxes each year, IF they do not report this in box #14 on the W-2.

If it IS reported on the W-2, then you can deduct either the standard meal allowance, over and above the per-diem paid or the actual amount of expenses if that is more than the standard amount, for a further reduction in income taxes, or in the case of a complete absence of the per-diem amount reported on the W-2, you could.....geez....do I have to type it? I think most people will catch my drift.

Why should they be the only one to catch a tax break?

They are small, but they've been around for quite awhile....other than that, I don't know much about them. Their safety numbers are average to a little better than average...so it might be a good thing....

Originally Posted by pambud96

One good thind is covenant has a web page that all I have to do is type in his truck number and I can pinpoint where he is.

Originally Posted by Wiser Now

I surely hope someone set you straight before your husband signed on with Covenant. They are a lousy company to work for. They say they are a Christian company but treat their student drivers like crap.

Originally Posted by newtruckerwife

Steve has had some of those secure loads.. computers i guess. But I am scared now, seriously they get hit over the head? and truck jacked? oh man..maybe i cant do this..