Schneider charge 2 cpm administrative for perdiem ?

Agreed. If you don't make enough money to pay your bills, you either need to find a better-paying job or cut down some of your expenses.

 

At 2cpm that's about $2500/year you're paying schneider for the opportunity of having them pay you per diem. I'm opposed to per diem in most situations as it rarely helps the driver except for the short sighted ones that get all excited about bigger checks up front. If you learn how to fill out a W-2 and withhold taxes as it applies to your situation you can get the same big checks up front, withhold less taxes then make up for it with per diem when you file, it's really not rocket science. In general the only situation where I have seen a driver benefit from per diem is one that owed child support which is based on your taxable income, to those guys per diem is like winning the lottery.

 

While I used to agree whole heartedly there are other situations that make per diem palatable. Live in a state with a high income tax that doesn't allow the meal deduction? Have a working spouse and want to drop a tax bracket?

Being on per diem most people end up paying less in.both federal and state taxes. The question is do you save more in taxes than you lose in income? That's a question only you and your Friendly Neighborhood Tax Professional can answer.

 

I do believe the company also pays less taxes with per diem..... So sni is profiting on both sides of the equation.

 

Per Diem is an allowance a driver gets regardless of whether or not SNI figures it weekly or your tax accountant figures it yearly.

SNI is not doing anything but profiting from a deduction you legally get from The IRS.

If you do a reset on the road it penalizes you. By IRS every full day on the road you get the deduction by SNI you only get the deduction by moving.

 

and only on the miles driven that day. I noticed that on my really short driving days.

 

Exactly mickeyrat, if it was a benefit to the driver it would not be offered.

SNI only does what benefits SNI.

 

Thing is a 1 to 3 cents for per diem administration charge is the normal. It is not just the math, it is all the forms and paperwork they have to file with the IRS. Open companies show it as a reduction/deduction of pay, other companies HIDE it. 52cpm without perdiem, 18cpm per diem + 32cpm per diem... = 50cpm not 52...

Also if A company overpays on per diem, they can suffer large fines, as they underpayed their share of FICA and Medicaire. That is not figured as a company wide amount, but on each individual.

 

You can and should deduct the portion that SNI does not REIMBURSE you for on your taxes.
Per diem on taxes, total days out x $59.00 per day + partial days out x $59.00 x 75% = total deduction amount allowed.
Tax deductable amount is the total deduction x 80% = tax deduction - company reimbursement= the amount you claim on your taxes.

 

Again, if you opt out of per diem and do it on your own you are still paying the full FICA taxes on all pay. The per diem deduction only applies to federal and state income tax in that scenario. If you are on the per diem pay plan with schneider you are paying FICA taxes AFTER the per diem is taken out already. So again, you're paying approximately $1200 less per year in FICA taxes. So you don't necessarily get the same deductions regardless.