Abilene Motor Express....A New Place To Call Home

Two things...

First, I asked after being hired and we do NOT have the option of NOT participating in the company "reclassification of wages" to per diem. So you can NOT opt out of it.

Second, what the company does won't account for the whole per diem due a Driver ... When you file your taxes at the end of the year you need to calculate the total amount due from the per diem and subtract the portion that the company has already converted out of your CPM Wages to per diem.

Ya, so I am NOT personally fond of the Compaies position in this matter but it's their call and it's legal to do it too. {shrug}

 

Agreed... And there should be some in Richmond who know about the trucking rules and can help you find items to deduct or help defend what is deducted.

I went with my normal tax lady from Illinois and she made one mistake that I know of, after the fact... So, yes, find someone that understands the tax codes as it relates to OTR Drivers.

OOIDA will be a good source to search.

 

Absolutely, this thread is great and ..... I wasn't even aware they did per diem. Didn't see it on the site so never thought to ask. Can't opt out? ... Hmmmmmm

 

Nope... As they are simply paying you a portion of the per diem within the CPM it's a part of your wages.

Most non trucking per diem is paid out on top of wages but in trucking they reclassify a portion of your earned wages to per diem.

But you are only allowed a certain amount of per diem on taxes as tax exempt therefore one must subtract the amount they paid you from the total due you and claim the balance on your taxes to actually gain the most tax benefit at the end of the year.

You still get the 100% of the benefit ...
... just in two parts... part now; part at EOY

The upside for the company to do this is that it's lowering their total wages paid and there for reduces their payroll tax liability (FICA, etc) and thus saves them money.

The downside for the driver is decreased total wages which means not as much has been paid into Social Security (FICA) and so at retirement time ones benefit may be reduced a bit.

Good, and legal, for the Company.

No benefit for the drivers and could actually cost us money down the road.

I assume most companies are doing this.

 

I told Bill that under no circumstances would I accept anything other than a green truck.

I got exactly what I wanted.

 

I would happier if I could just understand how they calculate the per diem.

I know per diem rates etc but there is some serious math going on with the payroll statements that I just cannot comprehend.

 

I've seen a couple drivers that do not have per diem taken out of their check. Company drivers at that. Maybe it was different before? Don't know, but I'm going to ask payroll. I guess for the last 3 years I've been cheating myself out of a bigger refund!

 

Ballsy move my friend... wow
Glad they let you keep your job

 

The per diem is based on the last pay period ... So the adjustment is always one pay period after the actual miles were run.

If that helps, you might be comparing apples and oranges. Maybe... lol