got a call from maverick

Then you can't deduct your per diem at the end of the year, correct?

To me this is sounding like they are using your money to pay you? Maybe I'm misunderstanding it?

 

then you couldn't deduct your per diem at the end of the year, correct. because you've already been paid your per diem. they tax your gross income after your per diem is taken out so your per diem isn't taxed, then add your per diem back onto your check. that's how i understand it. that way you get 100 of your per diem rather than whatever % of it the IRS gives back to you after you claim it yourself.

 

Way too confusing, LOL

 

yes that it.

 

The company im with charges two cents per mile for the per diem, and they make us take it. Don"t take the per diem.

 

It is not a scam at Maverick. I took it.

 

It is not a scam, but it benefits the company more than the driver.

 

It may benefit the company more, but it sounds like it would really benefit drivers, too. I need to research it more, but anytime you can lower your "taxable income" and reduce the amount of money that is subject to withholding, it's a good thing.

 

Just remember when you lower the income you earn and get hurt on a job, workmen's comp is based on the reduced income. So are disability earnings you receive from the government.

When you take the per diem as an itemized deduction, you may benefit more with other deductible items that you may not normally exceed the standard deduction with.

In addition, the per diem taken as a driver maximizes any other out of pocket charges incurred by the driver such as showers and truck supplies.

I am not saying it is good all of the time.

But the company gets a reduced amount to pay into the FICA, Medicare taxes through this plan.

 

Good point on the disability earnings aspect of this. And yes, the company is saving the 7.65% they'd pay for FICA & Medicare (which doesn't bother me).

It sounds then like it's not a "one size fits all" type issue. For some guys, it is a benefit, while others should take the deduction on their taxes. It's nice that Maverick gives drivers a choice in the matter, rather than forcing the issue like some companies do.