Schneider per diem

Then maybe they've changed how they do it. It's been 7 years since I had personal experience.

 

Perhaps, I, along with a whole lot of other people, misinterpreted per diem.
From what we all understood, one's per diem not only lowers one's federal and state income tax brackets, but also lowers one's Social Security & Medicare tax bracket.

What this means is that employers would be LEGALLY able to avoid paying their share of extra Social Security taxes, along with their share of Medicare taxes, because the extra money is all in per diem.

Also, this would reduce the employers extra share of contributions for unemployment compensation, workman's compensation, and their extra share of employer's contribution to employees 401(K) plans or whatever other retirement plans that the companies have to offer.

In the long run, the employees are ARTIFICIALLY being put into a lower income tax bracket as far as Social Security, Medicare, unemployment compensation, workman's compensation, and 401(K) along with other retirement contributions are concerned.

SADLY & UNFORTUNATELY, per diem is MANDATORY at many trucking companies.

God bless every American and their families! God bless the U.S.A.!

OTR & LTL - over the mountains - through the woods - coast to coast - sea to shining sea

The OTR & LTL truck drivers of America are positively the driving force of our economy.

 

This was my understanding. And I struggle to understand how it could have changed, but having no personal experience with it in seven years, I guess I have to defer.

 

I'll dig out that years w2 , snap a pic , make the appropriate edits to hide unneccessary info and post it.

 

So is it worth having Per Diem or not? Seems like the majority says no.

 

Imo, no. You wont find a CPA that will tell you to take it over claiming it at the end of the year

 

heres the biggest thing against imo. with this plan you are paid per diem for miles driven per day. could be 100 could be 500 that day. no telling which.

claiming it your self you get it for the day. 80% of 64 dollars I think it is now?
the only "benefit" I can see is having more in your pocket now starting out at a lower rate but screwing yourself later.
31k came off with self claimed per diem and other deductions this year for my wife and I and 90% of that or more was because of trucking.........

 

looks like I was mistaken. I couldnt find that years w-2 but i did look back through turbo tax returns. the difference total was in 401k contributions that year. not in per diem paid.

 

like you said, "screwing yourself later." you're much better off opting out and collecting later. think about it like this - if it didn't benefit the companies, why do so many of them try to force it down drivers' throats?

 

The last company I worked at I got per diem in the manner that it is intended , Every day that I spent away from home I received 55.00 in addition to my salary, at the end of the year I received a 1099 for the per diem , actual expenses were deducted and any over/under was paid or refunded on my taxes. Tucking companies have just reduced your salary and their tax burden, they doll it up by saying you take home more pay.