Perplexed by forced per diem option?

**rookietrucker** · 01.24.2012

YOUR BUSINESS: Perplexed by forced per diem option?

If you are an employed driver and feeling confused about which method of payment to choose when a company offers the choice of cents per mile or per diem, join the crowd.For some drivers, it’s an easy choice; for others, it’s a perplexing question. In fact, if your company gives you the choice, consider yourself lucky because some companies aren’t so flexible. This issue has been cussed and discussed for quite some time now, but it seems more companies are pushing the per diem option.

According to Tom Crowley with OOIDA’s Business Services Department, the Association has been fielding an increased number of calls from members reporting they were now required to be compensated under what is commonly called a “forced” per diem plan. The majority of the member questions on mandatory per diem pay are whether it’s legal.

There’s no law against making a per diem pay plan part of the company’s policy, since it’s up to the company how it wants to pay its employees. If it’s part of the company’s pay plan, and you agree to it – you are stuck with it. Of course, it’s your choice whether to take the job.

It is, however, a pay plan gaining in popularity with motor carriers.

more here >> YOUR BUSINESS: Perplexed by forced per diem option?

**Rug_Trucker** · 03.04.2012

Once again let's hose the American workers!

**Yawgnorw** · 03.23.2012

Thank you for the article it was helpful to a point, but still if we all listen to the companys that offer per diem pay options they are going to make it sound like its the right way to go. I'm lost myself is it the best option or is it hurting me in the long run? (speaking of long run I better get moving can't make any money this way.) Thanks for any help you can offer.

**Hardlyevr** · 03.23.2012

The one thing I can't figure out how it could be legal, is if they charge the driver for administering the per diem fees. That's robbery, or better yet highway robbery. No other employees in the country have to pay to get their paycheck!

**transam pete** · 03.23.2012

per diem is ok or not for each person tax me now get the deuction tax me later u get less deductions, listening to any of us is the foolish thing none of us have masters degrees in buisness or acct. The nay sayers might not be brighter then a 5th grader. After 35 years in buisness i was very good at killing fish and the acctountant did his job well. including telling me to get out because the goverment quotas were making me lose money BASICALLY I DONT HIRE A PLUMBER TO FRAME MY ADDITION
the charge by a company to administer per diem is imherently wrong but prolly legal prolly also deductable---> my dumb truck driver thought only

**DrFlush** · 03.23.2012

Per diem is good for some, bad for others, as a former business owner who did his own payroll taxes, I understand why companies push it. On the other hand, for some it is the way to go as it legally avoids paying tax on some earnings. Myself, I own a home in a state that allows the "Daily Deduction" while on the road so I save a lot more by getting all my milage pay and taking all my deductions at the end of the year.

**MrEd** · 03.23.2012

I worked for one company in my almost 20 years of driving that paid "per diem". It is the only year I have ever owed money on taxes at the end of the year. Per diem, as these companies call it, is not per diem at all. Per diem pay is supposed to be an additional pay that companies pay to compensate the employee for being away from home. My brother used to get an extra bit of money when the construction company he worked for asked him to be away from home overnights. It was extra pay. It was not screwing with your taxes, playing a number game, and then charging you an administrative fee to screw up your taxes for you. An OTR companies "per diem" is another way to screw ya. And I would gladly be proven wrong, but I know I won't be.

**Okieron** · 03.23.2012

Per Diem screwed me big time! so never again

**loosecannon** · 03.23.2012

Never never use your "god given" tax deduction, a.k.a. Per diem, when offered by these ripoff artists...it is your deduction for the end of the year, not marten transports, jb hunt, schneider, etc..it is not theirs to give. Everyone of you that know what im saying need to call the irs and complain about this convenluded borderline criminal use of a beneifit given by the govt to the driver. Eventually, enough people get fed up with it, they will have to pay the drivers what they promise and wont be able to save the millions in taxes that they are screwing the govt out of by screwing us with this per diem/admin fee crap

**Dna Mach** · 03.23.2012

$0.01 cents per mile adds up to $25 dollars a week or about $1200 dollars per year. I've heard of some companies charging $0.02 per mile as an "administrative fee" $2400 dollars per year is all I need to know to say No Thanks.

Un-FRIGGIN-believable! Not only the people that fall for this scam BUT the companies that do this.