Schneider per diem question
Discussion in 'Schneider' started by bamamac, Sep 20, 2014.
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14.5 cpm, mandatory for new drivers for 90 days. There's also a 2 cpm "administrative fee" that they keep. Not sure if it is mandatory for new-to-Schneider experienced drivers, or just inexperienced drivers...I'm sure someone will pop in with more info.
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So yhet charge you 2 cpm to work for them, gee where do I sign up Walley.
blairandgretchen Thanks this. -
To be clear, the two cents 'administrative fee' is simply the tax they pay on the amount of perdiem you don't pay taxes on. you know someone has to pay taxes on it, because there's no way the gov't won't get their share!
Last edited: Sep 21, 2014
mickimause Thanks this. -
harlycharly55, Ubu and C & C Thank this.
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Per diem is an allowance that the IRS allows you to right off of your taxable income, no one pays any tax on it. It is NOT pay, it is an allowance is in lieu of writing off actual travel expenses.
When a company pays per diem they are doing it to.............
1) Make it look like they are paying more then the really are.
2) Lower the amount they have to pay into your Social Security and Medicare.
3) Lower the amount they have to pay for workman comp insurance.
Items 2 and 3 are due to it lowering the amount of income declared to the IRS on your W2 form but this also has an affect on what you can tell a bank you make when asking for a loan.
If they do not pay you per diem all the income is shown on the W2 form and you can file for per diem yourself at the end of the year using Form 2106. If they do pay you per diem you can still file for it at the end of the year but it is reduce by the amount the company has already paid you.
Company's like to pay it as it makes it look like you are making more them you are by including your own tax benefit as part of your pay check. Charging you 2 cmp for screwing you in the first place is adding insult to injury IMO.Last edited: Sep 22, 2014
harlycharly55 Thanks this. -
One last thing because it lowers your income, it has a negitive impact on your credit score. It can keep you from qualifing to buy a house or a car, just for instance.
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how about you consult a tax professional. About this in general and your needs specifically. Works for some folks, doesnt for others.
.02 still sticks in my craw though. -
Schneider never did actually take per diem from me when I started. Maybe because I had a few months' experience at another company when I came here.
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