Per deim

I agree with you per diem is all about benefiting the company. Isn't paying yourself with money you have already earned paying yourself?

Im not an accountant so if I'm wrong I just want to see where I messed up.

$0.23 a mile base pay

$0.10 a mile per diem. Where does this $0.10 come from? Is it estimated from the deductions you will claim from your per diem?


I know its not an income, bonus or anything like that. Its more of an estimate of what you will claim (via per diem) at the end of the year,correct?

 

If you take the per diem, you can not take the deduction at the end of the year on your taxes. Which I believe will be $58 a day.

If you don't take the per diem, you can claim the daily deduction on your taxes at the end of the year. In Canada it sounds like they do it that way, from what you are telling us.

I don't like the per diem because it reduces goverment benifits if somthing causes you to lose your job. Per Diem is designed to help companies pay less taxes into the social system that benifit you personally.

If you are a company driver with almost no out of pocket expenses, I recommend against per diem pay.

 

Not 100% true.

Not very many truck companies take the entire daily amount in consideration for the per diem amount.

What if they are only factoring in 15.00 per day?

You are then entitled to the difference.

 

ok i guess i was kind of on the right track---so you really cant consider per diem to be part of your wage---and from what i see a lot of companies have that tacked on to make the wage look more attractive
if you own your own truck do you still get to claim the same per diem?
or i guess you could use reciepts at tax time
its actually looking a lot more attractive to buy my own truck---i think--

 

If you own your own truck you are entitled to per diem as well. However, you take the per diem off on the Sch c rather than an itemized deduction subject to a 2% floor deduction.

 

Actually you still get to claim the difference between what the employer pays you and what the total is that you have accumulated.
Company's that use a mileage rate to pay per diem are required to make sure that the ammt they give you will be less than the total you should receive. Otherwise you would be required to pay back the difference. And penalty's.

So lets say the employer pays you .08 cpm and you run 120,000 miles and are away from your tax home 300 days.

That means that the company gave you 9600 dollars pre-tax.
You actually earned 13,920 in per-diem for your time out. This is the number of nights away from your tax home x 58.00 per day x .8, since you can claim 80% of the total.
I did it at 58 a day, i think it is 59 a day now though. But this gives you an idea. So you can still claim the difference between what the company gave you and what you earned.
In this case that would be 4,320.
On the form that you use to compute your per-diem they will have a space to put down what you already received.
If I ran those numbers running .10 cpm it would be 12,000 paid to you already, so you would not be able to claim as much at the end of the year. This is ok though since the government did not have all year to play with your money.

 

I agree with you about the government not having all year to play with your money. Its better in your hands then sitting interest free in the governments pocket.

The biggest problem is companies paying drivers $0.23 cpm then adding a $0.10 cpm per diem. You are basically paying yourself $0.10 through your per diem. $0.23 a mile is an awful number.

 

Marten Transport only pays .16cpm and .17cpm per diem. There can't be a whole lot left to claim on your taxes.

 

ok so the way i see/interpret the per diem--is ummm----its a load of crap
companies are using it to bolster their poor ### wage and make it look like they actually pay a living wage
the more i learn about most companys--the more attractive buying my own truck is
seriously---if i have to work for nothing--might as well do it in my own truck

 

Are you serious?