Home daily driver being paid per diem?

No he shouldn't be paid any per diem... The company is cheating the irs and could easily come back to bite your husband in the rear..inform them to cease immediately...if they continue, call the irs and report it.

 

per diem just means per day. Which is how he is getting paid. He appears to get paid per day - not per hour, cpm, or percentage.

The per diem is the daily wage, is not tax free, or related to the per diem scam that big trucking companies run.

I think you are just miss understanding the terms and paycheck stub should explain it all.

 

per diem is an allowance by the irs. for people that don't come home at night. and i think you have to be at least 100 air miles away also.

depending on the profession., but you get around $59 per every night your not home in your own bed.

it's basically a cost of living expense away from home. you can either clam your food receipts. or perdiem, which will be higher.

the problem with it. is companies use it to their advantage. lowering their tax bill. putting the bill on you. essentially speaking. but it don't usually work that way for the employee.

your hubby has a day job, and is home every night. so no, he's not allowed per diem. doesn't matter how he gets paid. it really don't effect you or him. except at the end of year come tax time. he just won't get as big a refund. OR could end up with a bill.

 

I believe every comment that is being made here is in response to a different per diem than what you are getting. It appears that your spouse is receiving per diem pay. Check the social security tax with held and confirm it to be 76.50 and let me know.

 

If it is like you describe, I am wrong. I have worked many per diem jobs and like I said per diem means per day.

It is often referred to in trucking the daily (per day) expense tax deduction the IRS allows for a OTR driver away from home. The IRS allows the company to pay what would otherwise be a tax deduction as a percentage of tax free pay. Totally a benefit to to company that preys on a drivers suspicion of taxes and government.

As your man is home everyday he is not eligible for that deduction and his company is not allowed to take its benefits in his name. Good catch. Somebody in the office is mistaken or ??????. Best to catch it before it becomes a problem; like another driver getting audited and leading the IRS to the company full of driver's with bad tax returns. Anyway he should get the social security, unemployment benefits, workers comp. out of that addition $200. It appears that they are not paying the percentage due from that $200 also.

 

Might I suggest to the OP that she post this question in the legal forum to get some more expert advice. I mean absolutely no disrespect to my peers but that forum has accountants and tax people and experts and what not. We have anecdotal knowledge based on our particular experiences and may be different than her situation and the actual regs on the matter. She needs expert, not anecdotal, advice because the consequences of acting on advice that turned out to be wrong for her particular situation are pretty stiff. The per diem thing has pros, cons and requirements and CAN be a benefit if done correctly but it takes a tax pro to know just how to do that so you are compliant and can survive a potential audit without penalty.

Love y'all like sisters and brothers from another mother but we really shouldn't be giving anyone tax advice unless we're certified tax pros. Our best help is to direct them to one. Just IMHO..

Peace and Love.

 

The company is doing this because it makes them money.they are paying less taxes, less social security, less into workman comp insurance, less state taxes, if he quits less unemployment, if he's just they will pay you less workman comp payments.


The only one winning is the employer.