Per Diem: So what is the scam?

So, if we do not take per diem from our employer, do we have to keep all our recipts from the road...or just all our logs?

Seems like it is more $$ if we do not take per diem from employer, but it only comes once a year right? Speaking as an otr driver.

 

RickG, I understand what you are saying. I was with Crete and did not have a Per Diem taken out for 2008 so I claimed my days out otr and got back a nice chunck of change. For 2009 I did the same thing, only swithched to a local job back in October. This company gives you Per Diem automatically when you travel farther than 150 miles away from the terminal. It shows up on my pay stub as Subsistance (52.00 per day I think). It is not less money because my gross is the same. It is just Gross that is not taxed just like my insurance and 401K if I had it. I'll be going to HR Block as soon as I get my w2's in and I'll ask all the questions I can. I appreciate all of your help with this as these laws keep changing and of course who can trust a company today.
BTW- I thought I might not be able to collect the Per Diem since I am local but I borrowed the 2010 Tax book from the library and they have it under their section for Per Diem that allows local (interstate) drivers to collect it.

 

Wicked Wizard: Because you are in a different category from OTR there is a different rule! Your company is actually paying you pretty good on the per diem as you are "local" but when you go out past that 150 mile mark that's where you qualify as I bet you have to spend the night. It's not as good as Uncle Sam but still good! But your CPA can still average your days out so it becomes a few extra dollars.

Now for the rest of you: If you are going to use receipts instead of the daily number of days out you will have to come up with a lot of receipts! You also need to make copies of the "heat" printed receipts as they fade over time! There are not to many restaurants these days that give out written receipts where they add your tips ( I really hope you give a good waitress a tip as they work for crap wages!) The $59 dollars you usually see us talk about is actually the percentage out of I think this year is now $85 and the $59 is what it comes out to. So you actually need to show 80 some odd dollars in receipts to even out your taxes.


The only real reeceipts you need as a company driver will be ink pens, SAFTY SHOES not tennis or non OSHA type shoes, uniforms if the company requires you to wear them not jeans and Levis shirts or regular every day clothing, work gloves, non paid tolls (like if you didn't want to run across the top of Oh, In,IL, PA and IL on 2 lanes) hand tools you need to perform your job, CB equipment (yes it can as it's needed to perform your job!) Computer and programs used to perform your job like routing software and log book programs, and the broadband card if you use it to send in BOL's or get information to, lets hear it perform you job, Fuel you need to get to an authorized fuel stop and the compny will not pay for, and anything else used to "perform your job!" Keep EVERY log book as you need them to use for your days out.
For O/O's there are more you need to keep which I don't have to go into as you already know them! But the claiming of each day is the easiest and best way to claim your per diem.

Now, if you are so wanting to claim all of your food and motel/hotel expenses and are into working so hard you can also claim certain zip codes/towns for an even higher return but it's a waste of time and not worth the PITA that it becomes!

Basspro: Yes you still need to keep your logs. That company is only paying you PER MILE for that per diem they are paying. It does NOT equal what you actually get at the end of the year as I attempted to show above and stated in my first post.

Now if you use one of the "Biggies you need to ask them if they have someone who knows trucking. But if you look in your yellow pages you can find one or ask a local O/O who they use or recommend. I used a CPA but went to a biggie just to see what they knew and went back to my regular lady as the "other" people didn't get all of my deductions correct and charged me MORE than my regular lady! As for doing your taxes with an online thing or a box and you screw up, who's going to stand up for you when the IRS comes knocking on your door? That box? Or the internet? Nope! I am a home owner and my tax people have charged me $160 a year for the last 10 years. Remember that cost is deductible also in the next year!

It's almost time to get the taxes done! Just ask your accountant what you can claim and what you cant! You can also get this information from the IRS. Just keep your receipts, write on them what it is and put them in an envelope! Just keep in mind that those that use a heat printer will fade and if you get audited and it's a big ticket idem and you hand it to the auditor and it's a blank piece of paper it's not a good thing! Make copies!

Also remember getting tax advice off of a forum is not as good as from a CPA's or the IRS's mouth! Use caution! If you've never lived through an IRS audit feel very extremely lucky! Don't ask for that kind of trouble! Just remember that you can ask for a cost of living form to help pay the bill! LOLOLOL

 

I opt out of the per diem every time except I got screwed with it when I went to work for Marten because it is required for the first 6 months of employment. It's a crock of #### and need's to be done away with. Companies eat it up when you opt into per diem because your taking less out of your pocket and giving them the tax break like RickG explained it. Avoid it if you can help it however more companies are starting to have it as a company policy that you must have it for a certain amount of time when first employed.

 

Every company pays differently . What drivers need to do is keep track of their eligible days Record it every day . The easiest way is if your log books have recaps for both the 70/8 and 60/7 use the column you don't need to write in the city you spent the night in . At the end of the month write the total number of eligible days on the cover . Then if you are paid per diem see how much the amount you were paid compares to the amount you were eligible for .

 

What about?

 

Alot of truckers like per diem because so many are making (ducking) alimony/child support payments due to the extremely high divorce rates in this industry.

 

I think the only scam part is if a company charges a driver 1 or 2cpm to 'service' the per diem. I believe somewhere on the forums a driver or 2 has said their company does that.

Other than that, and unless I'm mistaken (not unlikely), the only differences would be that a driver with company per diem would get slightly larger net pay per week and less $ amount credit at end of year, and a driver who takes his per diem off his end of year taxes would have a smaller weekly net pay and a larger $ amount at end of year.

Jim F

 

Interesting discussion.... I am NOT A TRUCKER.....But I do the taxes for my son who is the trucker in the family....

He changed Jobs in June 2009 from a company that did not pay Per Diem to a company that "insisted" on paying Per Diem ... At the time I was happy for him because he took home more per week ...an in this economy he needed it...!

HOWEVER sitting here last night doing his taxes I got real pissed off ....

He is being paid 9 cents a mile Per Diem ... and is averaging $112 dollars a week Per Diem pay...... (which works out to about 1200 miles a week...This is BS because he averages a little over 2000 miles a week) ... BUT that is not what got me MAD....

The Total listed in box 12 of his W2 lists $2930 as employer reimbursed expenses...BUT IT HAS A CODE "L" in that box ....

Code "L" is for EXCESSIVE reimbursements which exceed the normal amounts allowed by any of the methods of calculating the per Diem rate...and are thus ADDED on to his wages in Box 1 of his W2... So he is paying taxes on this EXCESSIVE reimbursements...

ANYWAY... I can not figure out how many miles he would have to drive to max out his allowance of 52 or 59 bucks a week PLUS getting paid close to $3000 IN EXCESS...

I'm just an old retired Legal Drug Dealer (Pharmacist) and I do not understand Trucking except that my son is always dead tired and never knows where he will be this afternoon let alone tomorrow...

Bob G.