Per diem…who sets amount?

Discussion in 'Experienced Truckers' Advice' started by Lennythedriver, May 29, 2022.

  1. Lennythedriver

    Lennythedriver Road Train Member

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    I get how per diem works overall. But who sets the amount? You think generally speaking it would be the same for all OTR drivers but at some companies they’ll pay six cents per diem per mile and other companies it’s up to $.12 per diem per mile why is this? Who determines the amount? If you’re getting the lower amount it basically equates to a slightly smaller check and more taxes paid. My company run at 11cpm mile, the last I worked for was 7cpm. Never made sense to me.

    also, is this something that might factor into you choosing a trucking company? I did some calculations and the difference between the last company and the one I currently work for equals about $160 extra per month in my pocket because of the higher per diem.
     
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  3. TruckerJimbo

    TruckerJimbo Medium Load Member

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    The company I work for pays $0.14 per mile for per diem.
     
  4. Bean Jr.

    Bean Jr. Road Train Member

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    The IRS sets the amount. Your carrier will set a rate to in order to pay roughly what they're allowed to deduct. The mileage rate should be roughly based on the average amount of miles their drivers average per day.
     
  5. snowwy

    snowwy Road Train Member

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    Does it even matter anymore?

    Didn't per diem go bye bye?
     
  6. kylefitzy

    kylefitzy Road Train Member

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    It matters more now than ever. Company drivers can no longer claim Perdiem on their own, but the carriers can still pay Perdiem. In the past it didn’t matter too much what the company paid, I figured out the maximum amount of Perdiem I could earn, and my accountant would claim the extra amount of Perdiem.

    Now I only get to claim with the company pays me, nothing on my own.
     
  7. teams567

    teams567 Medium Load Member

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    Shipex years ago paid per diem. FORCED per diem. And it was high something like 18cpm

    Shouldn't it be a drivers choice if they want it or not?

    Not sure what Shipex is doing now. Don't see too many of their trucks on the road.
     
  8. buzzarddriver

    buzzarddriver Road Train Member

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    It is basically the daily per diem rate divided by the average daily miles driven per truck.
    As an example, $63 dollars per day divided by 550 miles average miles per day = $ 0.115/per mile per diem.
    The companies use fleet wide averages to figure this and it can vary widely.
     
  9. snowwy

    snowwy Road Train Member

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    They're still around. I see em all day long.
     
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  10. LtlAnonymous

    LtlAnonymous Road Train Member

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    Did you know that per diem pay is actually paid IN ADDITION to your pay in other industries, not just some weird partial tax break that costs you 2 cpm in "accounting fees?"
     
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  11. teams567

    teams567 Medium Load Member

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    Ok don't we all agree, per diem should be up to the driver. It's a drivers choice if they want it or not.

    FORCED per diem is what's bad.
     
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