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Per Diem "Offset" Rate

Discussion in 'US Xpress' started by TranceEternal, Mar 9, 2015.

  1. Mar 9, 2015 #1
    TranceEternal

    TranceEternal Bobtail Member

    9
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    Sep 15, 2014
    Anytown, US
    0
    I recently moved and noticed my rate changed despite being listed in the same pay region on the USXjobs.com/newpay site. My issue is not with that in particular, but it did suddenly make the per diem offset seem quite high at $0.037/mile. In my old state, it seemed the offset rate was only $0.017/mile, although I'm now being told it was $0.037/mile all along.

    My base rate is $0.38/mile.
    Per Diem is $0.188/mile taxable, $0.155/mile non taxable (combined $0.343/mile).

    Is that similar to what others who are on per diem are setting?

    I know many people have opinions on allowing the company to handle the per diem deductions, but I'm not looking for that. With my tax situation it is more advantageous to take the standard deduction plus get the company per diem benefit than it is to itemize the self reported per diem benefit. I just want to confirm the offset amount. The two payroll folks I spoke with couldn't answer my question, they just kept giving me the $0.188 & $0.155 rates.
     
    TranceEternal, Mar 9, 2015
    TranceEternal, Mar 9, 2015
    #1
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  3. Mar 9, 2015 #2
    Thediamond13

    Thediamond13 Light Load Member

    115
    55
    Dec 2, 2014
    Salt Lake City, UT
    0
    I think you can only claim $75 per day on Per Diem. if its more than that either you or the company will have to pay more. that's a really high rate. most places I see are around .06-.10 CPM non taxable.
     
    Thediamond13, Mar 9, 2015
    Thediamond13, Mar 9, 2015
    #2
  4. Mar 9, 2015 #3
    aargilb

    aargilb Bobtail Member

    6
    5
    Jan 17, 2015
    0
    My base rate is $0.42 per mile. Per diem rate for me is $0.228 taxable with $0.155 non taxable.
     
    aargilb, Mar 9, 2015
    aargilb, Mar 9, 2015
    #3
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  5. Mar 9, 2015 #4
    TruckDuo

    TruckDuo Road Train Member

    6,394
    9,373
    Oct 21, 2012
    Chicago, IL
    0
    Have you called Payroll and talked to a supervisor about it ? Their the ones who can explain something like that we've found.
     
    TruckDuo, Mar 9, 2015
    TruckDuo, Mar 9, 2015
    #4
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  7. Mar 11, 2015 #5
    Ribeye

    Ribeye Light Load Member

    139
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    Jan 4, 2012
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    I hope any of you guys getting paid per diem always consult with your tax preparer/accountant. Better safe than sorry.

    My understanding of per diem over the yrs. is that if you're paid the per diem, you are Not allowed to take the deduction off your tax returns, the company takes the deduction off their return. As for a split per diem rate that some have listed, I have no idea about that.
     
    Ribeye, Mar 11, 2015
    Ribeye, Mar 11, 2015
    #5
  8. Mar 15, 2015 #6
    BigBluePeter

    BigBluePeter Heavy Load Member

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    Aug 8, 2009
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    They are charging you 3.7 CPM to calculate your per diem for you. Anyone that allows the company to do their per diem is an idiot. My accountant calculates mine at tax time for about 200 bucks. It would cost me around 6k to let USX take care of that for me.
     
    BigBluePeter, Mar 15, 2015
    BigBluePeter, Mar 15, 2015
    #6
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  9. Mar 19, 2015 #7
    TranceEternal

    TranceEternal Bobtail Member

    9
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    Sep 15, 2014
    Anytown, US
    0
    That is incorrect. By having the company handle per diem, I do not claim that income, nor do I have to claim the deduction. Instead, my income is reduced and taxes are not paid. Plus, since I have no other deductions, I can claim the standard deduction on my federal taxes, resulting in an even lower AGI.

    If I handled per diem myself, I would have to claim the per diem as an itemized deduction and would lose the standard deduction.

    Even as high as $0.037, the cost does not outweigh the benefit, at least in my situation. I just wanted to confirm the rate.

    Calling someone an idiot without having all the facts correct, is certainly not productive to the conversation.
     
    TranceEternal, Mar 19, 2015
    TranceEternal, Mar 19, 2015
    #7
  10. Mar 19, 2015 #8
    BigBluePeter

    BigBluePeter Heavy Load Member

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    Aug 8, 2009
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    If you weren't on per diem you would know that they calculate the rate anyway and inform you how much more you would have made if you had been on it every week. For me I only have a net gain at around 2500 in a week, and yes I do get checks that high on occasion. Beyond that I gain all the benefit of per diem when I calculate my taxes come February, yes you loose the standard deduction but if you itemize you can deduct far more than what is standard, my deduction this year was right around 25K. I stand by my statement. Per diem is a way for the company to reduce their taxes and lower your payouts from social security when the time comes to collect it.

    About the only time it is useful is when you are having deductions taken out of your pay for alimony or child support and the amount is dependent on "how much" you are "making" per week and per diem is a way to skirt that.
     
    BigBluePeter, Mar 19, 2015
    BigBluePeter, Mar 19, 2015
    #8
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