Hello Everyone. I've read a lot of posts in various categories for a long time and finally created an account to ask my own question.
Our trucking company has some drivers that have requested that we implement per diem so they can take advantage of paying less taxes which results in a larger paycheck. We want to offer this as an option to our drivers and are having trouble finding much information on how to correctly manage this. Our (old school) CPA did not want to have anything to do with it so after trying to prove it was legit for over a year we decided to change to a payroll company that would. The new payroll company does allow it however they cannot provide information as to the rules.
Is there anyone that has been involved with setting up per diem policy and implemented it willing to share where they found IRS rules? We have found IRS rules pertaining to $66 per day but nothing to tell us what qualifies for a day. For example, if a driver leaves at 12:00pm and is gone overnight would they qualify for a full day or a partial day? What constitutes a day? How do you track it? Does the driver report it or does the office decide based on what time they leave and return?
Any help is appreciated!
Rules for Per Diem
Discussion in 'Trucking Industry Regulations' started by OldTruckerGirl, Jan 26, 2021.
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IRS rules, non receipt per diem.
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www.irs.gov › pub › irs-pdfPDF
2019 Publication 463 - Internal Revenue Service
Try thisAttached Files:
OldTruckerGirl Thanks this. -
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Farmtractor9900 Thanks this.
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Part of the first stimulus package will boost the percentage that O/Os get from 80% of the amount set by the IRS, currently $66 a day, I think. For tax years 2021 and 2022 it will increase to 100%.
Federal stimulus plan boosts truckers' per diem deductions -
I thought the only per deim available to company drivers anymore was the mileage based? The daily based is only of IC's. Or so I was under the impression of.
sevenmph Thanks this. -
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