Forced Per Diem... Theft?

Welcome to Marten transportation, least this is what i have heard and read.

 

What the real deal on the per diem pay is that it is a tax savings to the company when they use it. It is also a tax savings to you if done correctly. The $42 a day you should be receiving is tax free, but then you cannot later claim it as a deduction when you file. The advantage for the company is that they do NOT have to pay the matching taxes for Social Security, etc., on that $42. So any savings to them, times the number of drivers, is a ton of money.

 

I agree that forced per diem is BS.

However, you still have the ability to walk out the door.

 

Or turn them over to the IRS.

One thing, ONE THING, is never mess with my cashflow. Company per diem is a scam. it saves them money and makes you take it twice. Once when you get paid, and if you get hurt on the job, unemployed or retire, it shows you making less than you really made.

So you get paid off that.

 

Probably a good thought. But I would wonder if there is a document that is signed during orientation that allows it.

 

at knight, they don't even tell you you're going to be on per diem. you find out upon the first pay statement by way of the qualcomm. i filled out a piece of paper, had it signed by three witnesses stating that i will no longer be on that crappy deal. as of last week, i'm STILL on it.

 

It will also hurt you when you go to get a home loan or any other kind or credit thing as you will not be showing your true wage range, and you know how those lenders are these days! The more in your IRS tax file the better off you are! That's THREE ways you are getting screwed!

 

Is this true? My unemployment was based on gross, not net. Anytime I have applied for a loan it was based on gross, not net. I am not certain but I think SS witholdoing is based on gross before non-taxables are taken out. For example, SS withholding is based on the amount grossed whereas federal tax is based on the amount earned after the 401K and health insurance is deducted.

I know that there is savings for the company. Werner has structured their per diem to provide nuetral cash flow for the company. In other words, the employee benefits from the perdiem but Werner sees no additional cash from an employee participating. This differs from some of the per diem programs at some companies.

I need to research this more.

The bottom line is that if you are not able to come up with more deductions than the personal deduction allowed, perdiem benefits you. I would immagine that most truck drivers that track expenditures throughout the year, even company drivers, with a mortgage, can find enough deductions. However, in my case I have been unemployed for the past 9 months. I begin working next week. I have chosen perdiem for the remainder of the year to maximise income. Next year will probably be a different story. I will run a projection model in December to see if I want to participate next year. With Werner you have the choice. They are very upfront and absolutely leave the choice to you. In addition, they share the necessary information with you, including the benefit to them, so you can make an educated decision. The only thing they don't do is provide a comparrison. Due to the variables in income, this is something you have to do yourself.

It is foolish to take a negative attitude toward perdiem without figuring out your own personal situation. If I get a chance I will try to figure out a worksheet that I can share that everyone can use to determine their own personal situation.

 

Yes you do.

Here it is in a nut shell....reported income.

I make 31k and report 20k. What figure is used to compute my unemployment and social security?

Loan originators use your tax returns. Mortgage brokers use your actual income. There is a difference.