covenant

llkwildcatt · May 30, 2006

TurboTrucker said:

Thanks for the vote of cofideince TT. Maybe its just that your wife and I are good Tennessee women? HAHA
Click to expand...

Actually, she is a native North Carolinian, but has spent most of her life in Tennessee....

I didn't realize it, but you and I live about 25 miles from each other....

Can someone explain Per Diem to me. He is not getting the 19.5 cents per mile they said he would and if I could understand per diem I might be able to figure it out.
Click to expand...

Okay...the way most per-diem deals work, and I'll use an example for this, is like this...

Let's say that a driver is paid .30 a mile, and the per-diem rate is 7 cents per mile.

On the settlement sheet, you should see where the driver is paid .23 a mile for all the paid miles that he runs. This section is usually detailed to reflect the trips and mileage figures. In another section, you should see the per-diem figures, with NO detail, but the mileages should be able to be matched up to the detailed section, and of course, this should be at the per-diem rate, of 07 a mile in my example. Added together, they should total .30 for all paid miles (in your case, .195 a mile).

Now...the way per-diem works, this .07 a mile is set aside, and no payroll taxes are assessed on this amount. It is added back into the net pay, after taxes are taken out on the .23 a mile plus any other accessorial pay items (detention, extra stop pay, etc.). The .23 a mile is reflected on the W-2 form at the end of the year as part of the gross pay (along with accessorial pay). Most companies report the per-diem amount in box #14 on the W-2 form.

What this means, is that the company in essense, is claiming to reimburse the driver for a portion of their road and meal expenses, and this is in the form of tax free money paid to the driver. In reality, it is a legal ploy to save the company on a part of their portion of the 7.5% (apprx) of the Social Security taxes that they are supposed to suppliment, PLUS they get to claim reimbursements that are written off their taxes. Another drawback to the employee, is that their future benefits are reduced, because it appears on paper that you made less than you actually did, and therefore, less money was paid into the employee's Social Security account over the year, both by the company and the employee.

Short term, the employee saves on payroll taxes, just as the company does, but the long term effect could reduce what the employee will draw at retirement age. I suppose to decide if it's a good or bad thing, it would depend on how much a person will have to depend on their Social Security to support them upon retirement.

There's a couple of ways to handle this at tax time, since transportation workers are allowed a generous write-off for meals and incidental expenses, and there is a way to recoup some of this, in the form of a savings on your taxes each year, IF they do not report this in box #14 on the W-2.

If it IS reported on the W-2, then you can deduct either the standard meal allowance, over and above the per-diem paid or the actual amount of expenses if that is more than the standard amount, for a further reduction in income taxes, or in the case of a complete absence of the per-diem amount reported on the W-2, you could.....geez....do I have to type it? I think most people will catch my drift.

Why should they be the only one to catch a tax break?

Also has anyone heard of Ocoee River Transport. It is out of Cleveland TN and the school Bud and Tony went to has contacted them about a team job dedicated Tn to Ca. with this company. Sounds to good to be true but they have an interview. Rolling Eyes
Click to expand...

They are small, but they've been around for quite awhile....other than that, I don't know much about them. Their safety numbers are average to a little better than average...so it might be a good thing....
Click to expand...

They are top of the line.. Ocoee River Tansport Rocks

thejaneofalltrades · Dec 27, 2006

pambud96 said: ↑

One good thind is covenant has a web page that all I have to do is type in his truck number and I can pinpoint where he is.
Click to expand...

I have been trying to find out how to do this. Don't suppose anyone out there can help with this?

McRobin · Dec 27, 2006

To the best of my knowledge, the only way you can track a truck is to register. I think you need to be a shipper, broker etc to do that, because you need a customer number to register. I could be wrong though.
Hope this helps

Wiser Now · Aug 3, 2007

I surely hope someone set you straight before your husband signed on with Covenant. They are a lousy company to work for. They say they are a Christian company but treat their student drivers like crap.

Wiser Now · Aug 3, 2007

Can you give me more info on Ocoee River Transport? My husband and I are looking for a company that really treats its drivers right. Covenant was a nightmare and we got treated very poorly by them. Thanks for any info on Ocoee River Transp. I can't find them listed under trucking companies. Are they a large company?

ddog · Aug 3, 2007

Wiser Now said: ↑

I surely hope someone set you straight before your husband signed on with Covenant. They are a lousy company to work for. They say they are a Christian company but treat their student drivers like crap.
Click to expand...

Anyone thumping more than twice on a Bible, look out. They are usually the lowest form of snake oil ripoff salesman at least 99% of the time.

newtruckerwife · Sep 9, 2008

Steve has had some of those secure loads.. computers i guess. But I am scared now, seriously they get hit over the head? and truck jacked? oh man..maybe i cant do this..

Wiser Now · Sep 10, 2008

newtruckerwife said: ↑

Steve has had some of those secure loads.. computers i guess. But I am scared now, seriously they get hit over the head? and truck jacked? oh man..maybe i cant do this..
Click to expand...

Security loads are no big deal. Just like any other load...just drive the miles required without stopping, follow the rules.

Highway Cowboy · Jan 4, 2009

I have been with Covenant for over a year now and it will not make 2 years. For a few months now I have been thinking about leaving Covenant for various reasons. One is pay. I have been with them for almost 2 years and I am only making .29cpm.
Now just a week ago Covenant announced that it is mandatory that everyone take the per diem, they took away local haul pay, plus bonuses are being taken away and now on top of a $500 pet deposit, they will now charge a $250 annual fee for people with pets. It seems to me when a company takes away opportunites for a driver make money, charges the driver more money, and or takes money away from people that they are not going to be in business very much longer and they are grasping at straws.
I have had enough of Covenant...If you are looking to Covenant for employment. I would say...do yourself a big favor and go somewhere else. I'm at my limit of BS.

imlearnin · Feb 14, 2009

Really? 29cpm? Did you find a new company yet. I was wondering what someone might make after putting in a year there.

Log in or Sign up

Forums

Find Trucking Jobs

covenant

llkwildcatt Bobtail Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

thejaneofalltrades Bobtail Member

McRobin Bobtail Member

Wiser Now Bobtail Member

Wiser Now Bobtail Member

ddog Light Load Member

newtruckerwife Bobtail Member

Wiser Now Bobtail Member

Highway Cowboy Bobtail Member

imlearnin Bobtail Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

Log in or Sign up

Useful Searches

Find Trucking Jobs

covenant

llkwildcatt Bobtail Member

Wait, employers can't reach you!

thejaneofalltrades Bobtail Member

McRobin Bobtail Member

Wiser Now Bobtail Member

Wiser Now Bobtail Member

ddog Light Load Member

newtruckerwife Bobtail Member

Wiser Now Bobtail Member

Highway Cowboy Bobtail Member

imlearnin Bobtail Member

Wait, employers can't reach you!