Truckers Report Jobs

Find Trucking Jobs

Company Driver Company Driver Dry Van Dry Van Flatbed Flatbed Refrigerated Refrigerated Specialized Specialized Owner Operator Owner Operator
More Trucking Job Searches ⌄ Fewer Trucking Job Searches
⌃

LLC taxed as Scorp. Per Diem no problem?

Discussion in 'Ask An Owner Operator' started by Power Meister, Aug 6, 2022.

  1. Aug 6, 2022 #1
    Power Meister

    Power Meister Light Load Member

    127
    91
    Jan 30, 2022
    0
    Thanks!
     
    Power Meister, Aug 6, 2022
    Power Meister, Aug 6, 2022
    #1
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Aug 6, 2022 #2
    blairandgretchen

    blairandgretchen Road Train Member

    12,046
    60,631
    Dec 9, 2011
    South west Missouri
    0
    As if should and IRS then income
    probably included fine.

    Hope this helps, I think I covered all points given the question asked.
     
    blairandgretchen, Aug 6, 2022
    blairandgretchen, Aug 6, 2022
    #2
    God prefers Diesels and trucknguy Thank this.
  4. Aug 6, 2022 #3
    Power Meister

    Power Meister Light Load Member

    127
    91
    Jan 30, 2022
    0
    So if you pay yourself on W2, say 50k (notwithstanding the other deductions), the aggregate of the Per Diem ( $59 per day) is subtracted from the 50k, and you only pay the 15.3% self-employment tax on the remainder? So, say you stay out 334 days per year, then: 334 * $59 = $19,706. 50k - $19,706 = $30,294. Thus, only $30,294 is subject to the 15.3% self-employment tax, correct?
     
    Power Meister, Aug 6, 2022
    Power Meister, Aug 6, 2022
    #3
    blairandgretchen Thanks this.
  5. Aug 6, 2022 #4
    Kshaw0960

    Kshaw0960 Road Train Member

    1,575
    4,972
    Jun 17, 2018
    0
    I have an LLC taxed as an s-corp. I pay myself a W2 and the company is the one that takes the per diem deduction.

    My tax guy says it’s supposed to be this way and he told me why but I forgot. Been doing it for years.
     
    Kshaw0960, Aug 6, 2022
    Kshaw0960, Aug 6, 2022
    #4
    BoostedTeg and KrumpledTed Thank this.
  7. Aug 6, 2022 #5
    KrumpledTed

    KrumpledTed Medium Load Member

    453
    1,414
    May 6, 2022
    0
    This is how I have mine organized. Never had issues.
     
    KrumpledTed, Aug 6, 2022
    KrumpledTed, Aug 6, 2022
    #5
    BoostedTeg Thanks this.
  8. Aug 6, 2022 #6
    Power Meister

    Power Meister Light Load Member

    127
    91
    Jan 30, 2022
    0
    Makes sense. Maybe the IRS looks at the Per Diem as a company expense to pay for the employee's meal expenses. The company then forwards it to the employee, but not as taxable income. Rather than the employer paying each place the employee had a meal at. So it looks like the company does not have to pay tax on Per Diem, and the employee also does not have to pay tax on Per Diem. Correct?

    Also, what is the max Per Diem amount tolerated by the IRS, $59 per day?
     
    Power Meister, Aug 6, 2022
    Power Meister, Aug 6, 2022
    #6
  9. Aug 6, 2022 #7
    77fib77

    77fib77 Road Train Member

    8,587
    48,971
    Jul 7, 2010
    St Louis
    0
    As of January 2021, the per diem allowance is $66 per day in the continental United States. However, if you deliver goods outside the continental U.S., this rate increases to $71per day. The IRS currently allows owner-operators to deduct 80% of the per diem rate.
     
    77fib77, Aug 6, 2022
    77fib77, Aug 6, 2022
    #7
    Dave_in_AZ Thanks this.
  10. Aug 6, 2022 #8
    Power Meister

    Power Meister Light Load Member

    127
    91
    Jan 30, 2022
    0
    And that 80% is deducted from the company side income it appears.
     
    Power Meister, Aug 6, 2022
    Power Meister, Aug 6, 2022
    #8
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.