Taxable Company Items/Per Diem Fring Benefit

Discussion in 'Trucker Taxes and Truck Financing' started by Grouch, May 28, 2011.

  1. Grouch

    Grouch Road Train Member

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    Taxable Company Items
    _______________________________________________
    Per Diem Fringe Benefit

    With a new company and the first two pay checks had this item listed and I have never seen this before on a itemized check stub. Both pay checks had $84.24 listed as per diem and each had $16.85 listed as " Taxable Company Items/Per Diem Fringe Benefit". This money was not deducted but only listed as such.

    I asked about this and got the answer that their accountant that does the payroll and taxes for the company set it up this way. I have driven for several companies that paid "per diem" and never have come across this before. Can someone shed some light? At the end of the year, am I facing paying taxes on what they have listed as per diem. We are paid 40 cpm but 6 cpm is paid as per diem, so actually 34 cpm per mile and then 6 cpm as per diem.
     
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  3. BigJohn54

    BigJohn54 Gone, but NEVER forgotten

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    I don't believe that you should have to pay tax on this. But I would need more information on the other items on the pay stub to understand what they are doing. I can tell you that number is 20% of the total per diem. Without knowing your miles I don't know what is going on. Did you drive 1404 miles both weeks?

    I have a thread "per diem as part of your pay" where I tried to clear up the misconceptions surrounding this. I just hope this is not a creative way another company has figured out to get driver's money. This shouldn't be the case if they didn't deduct it.

    I doubt it will have a negative effect on taxes. This is just a guess on my part though.
     
  4. Grouch

    Grouch Road Train Member

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    Yes, I did. Another week, I drove 1872 miles, the per diem came to $112.32 and then it showed up on my pay stub as "TAXABLE COMPANY ITEMS---Per Diem Fringe Benefit=$22.46
     
  5. G/MAN

    G/MAN Road Train Member

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    They are probably charging you income tax on the per diem. The only thing the per diem does is lower your social security tax obligation as well as that of the company. It may also lower your benefits when the time comes to collect your social security.
     
  6. Grouch

    Grouch Road Train Member

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    Ha! I have been collecting S.S. for 14 years already.:biggrin_255: Ain't got no concern in that aspect, but if I was a young man, I would certainly take a very hard look at per diem.

    What I am concern with now is my tax liability and that is the reason for asking about this.
     
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