cpm on diem

ya i love it when i see that "more if per-diem" each week. most of the time it's less than $100 when the per-diem wright off is $413 a week....

 

That is assuming you work all month long with no days off.. Also you can only write off 80 % of that value. What you get paid in per diem is less that number. You can still write off the difference.

 

It is important that you have to manage your cost as a company or you manage to go out of business. (also: the price you see at the pump is not what is really being paid) But on that 2 dollar difference (which would be more then that) if you had 1000 trucks and you spent a extra 2 dollars a day on each truck at the end of the year that is .7 million dollars. Any responsible company has to manage their cost (if they go out of business you do as well, no more job, you would have to switch carriers, mess up your record not to mention the money lost in the switch)

Is it a pain the #$## sometimes yes!!!! However any company that don't manage their cost is a company I would worry about having a job at. I worked at a company long ago (ms carriers) I loved it perfect company paid everyone well didn't worry about FUEL IDLING ETC.. What happen to them ??? Lets just say May hasn't been in this business this long because their making the wrong choices!

 

true but 80% of $413 is still $230.40 more than the $100 "more if per-diem" and i don't have to think about the math at the end of the year

also by not taking per-diem until the end of the year for taxes, ssa and loan income is $17,405.00 higher. if you want to buy things like a house showing $17,000 more income helps.

 

the main resson that a company wants you to take per-diem is that
1st they cut YOUR pay by $.02 cpm.... that saves THEM money
2nd THEY don't have to pay THEIR part of the taxes on what they pay you as pre-diem saving them MORE money

its a win win for them

 

Ok, now I'm seriously confused about this whole per diem stuff. I opted for it, it sounded good, but I think I'm not getting paid as much. I'm supposed to be at .35 cpm but I'm only getting .17 cpm now. is that tax free? what's the deal? I'm actually thinking of going back off it for a month or two and see if the pay is any different.

 

yes you loose .2 cent per mile.. I'm trying it out to see if it works out to more pay. if not Ill switch back...

 

Are you kidding yourself? Of course you're loosing money. X-.02m = LESS!!!

 

i opted out. i make more money writin everything off at the end of the year.