Per Diem question.

Why do you get more miles on one than the other? That doesn't make sense. They should need to move the freight no matter what pay plan your on.

 

How much is the per diem? Does the per diem come out of the .37CPM?

 

?????

 

Okay, depends on how much you run. Say you run 10000 miles per month. A modest number. That's a $700 difference of pay between the two per month, $8,400 for the year. Forget about the taxes saved for now, it will be minimal your first year.

BUT, in your first year, your number one goal is to do your record no harm, keep it clean. Your big payday comes in year number two at a different company, if you have a clean record. Double your pay the first year or more.

So, in light of that, I would run as little as possible, take your sweet time. Take number 1 with the per diem. The per diem is just a pretax reimbursement to you, as according to IRS rules. This pay is not taxed or needs to be reported by you.

 

Anytime a company (anyone, really) takes something very simple and makes it complicated, the reason is to confuse you into making the best decision FOR THEM.

That pay scheme is nuts. Go find a company that's not into playing payroll games.

 

I would opt for per diem pay now that company drivers can no longer claim per diem on their taxes. The savings can be significant.