See that's my point, that's what I want to make sure I'm understanding correctly. All the other stuff apart (which is messed up, I agree) IF the amount is reasonable, and IF there is no administrative fee, and IF they report it in a different box in the W2 --lots of "if"s, I know -- at the end of the year after taxes I end up with the same amount of money in my pocket, right? Only the deduction is already taken?
What's wrong with per diem pay?
Discussion in 'Experienced Truckers' Advice' started by Gitana, Nov 27, 2013.
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full speed and mje Thank this.
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Really I'd always run from it as quick as I could, then have it claimed on my taxes later on.
A double plus, I'd get the full amount of social taken out and get the extra pay at the end of the year.
These bigger companies have it set up so the gain is very little for what you haft to give up.
Trust me I used to run from it like a bat out of hell. If you have the option to get out of it, do that take it. Its never to late.Last edited: Nov 27, 2013
Gitana Thanks this. -
How are you?
I had been receiving this, (as you call it), "idiotic statement" information from several elderly individuals who were retired from the trucking industry, who sadly and unfortunately have passed away with the last 6 months to a year.
The 1st. thing that was mentioned to me is that an "administrative fee" is necessary to pay for and maintain both the computer programs and the payroll personnel needed to keep the per diem programs running smoothly in many of the trucking companies in the U.S.A..
The 2nd. thing that was mentioned to me is that a lot of the trucking companies, (large and small alike), could end up becoming bankrupt, going out of business, if they were required to pay the additional monies into social security, Medicare, workman's compensation, unemployment taxes, 401(K) plans, medical and dental insurance plans.
The 3rd. thing that was mentioned to me is that companies as the United Parcel Service, (UPS), need to have the Teamsters Union "let go" in order to maintain a competitive advantage against other companies, (both foreign and American alike). The Teamsters Union is pricing their workers out of a job, the very people that they are supposed to be protecting and looking out for.
The 4th. thing that was mentioned to me is that the union shop states need to become right to work states to guard against both climbing inflation and unemployment at all levels of society.
These 4 things are really for the readers of the trucking forum to decide and comment on. I personally have "MIXED" feelings about all of this.
God bless every American and their families! God bless the U.S.A.! -
full speed Thanks this.
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I also don't believe that survival is the main reason for many of the companies to do this, but rather GREED (not to be confused with diligently running a business to be profitable).airforcetoo Thanks this. -
full speed Thanks this.
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aimhigh, full speed, Gitana and 1 other person Thank this.
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Here we go again, not sure why I'm even saying anything but ANY MONEY you are paid by your employer IS SHOWN on your W-2. It doesn't make a rats rear end difference what, how or anything else the company does as far as per diem. If you got paid it will be on your W-2. Your GROSS income is what 99% of lending institutions use to determine your eligibility for a home mortgage etc. So if you make $50,000 a year then your W-2 will reflect a GROSS income of $50,000, it doesn't matter whether you received $35k of that taxed and $15k per diem, your W-2 will still show $50k. If it doesn't and your receiving pay that's not being reported on your W-2 then #1 your company is breaking major federal tax code laws and #2 you can take your full deduction on the amount reported on your W-2, illegal yes but you could do it.
As for whether or not per diem is a good thing, for me it's a HUGE benefit, my CPA runs my tax return both ways every year and my companies per diem works out in my favor every time. A forum is not the place to decide what's best for you and your financial situation. Call a CPA that knows trucking, have them look at your situation and they can show you which way is better for you.Gitana, airforcetoo, thebennyman and 1 other person Thank this. -
Box 14 I believe it is on the w2 is where the per diem is noted not in box 1 for total income. It is not included there ,you would also have to drive ~655 miles a day in order to break even if you get say .09 cpm. perdiem pay. Anything less and your losing money that can be deducted. So unless the company is giving you the IRS. Allowed amount for deductions I would do some serious math
full speed and thebennyman Thank this.
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