Per diem Taxable or not

The company CAN have a policy to require to pay per diem. You have the right to refuse to work there. But you cannot change their policy, or "opt out" unless they offer that option. Some companies do, but then they want to pay you a different rate.

So, my $0.02 per diem here. There are some benefits to some drivers with per diem, in that they don't have to itemize all their travel/road reciepts. But it also makes it so they CANNOT itemize the reciepts.
There is also the advantage that the employee doesn't pay Medicare, FICA, etc. on a large portion of their income. That means some savings, but essentially just a slightly larger take home pay. Even with a good tax return, your accountant can't get Medicare or FICA back (unless you are self employed) so you save a little today, but then your Social Security benefit down the road would/could be reduced as well. (If you believe it will be there when you retire)
In real life,you would be better off to keep and invest that $$ now for yourself than leave it with Social Security.

Let's get real. This per diem law change was not written for the benefit of the employee. It was sponsored and lobbied by the corporations, who spent MILLIONS of dollars on lobbying, bribes, etc to bring it about. And they are getting a big return on their investment in the $$ they aren't paying into Medicare and FICA for your benefit.
Do you think they do that for the employee?

The real issue I have is that it wasn't enough that they were saving themselves money, they also want some of the savings the employee would enjoy, by charging a "per diem calculation fee" or paying a slightly lower pay rate to the driver. In other words, these BFI outfits got even more greedy and have their hand in the pocket of the driver AGAIN. Of course, they are selling the program to you. They want you to think it's so good for you, but at the same time they are telling you that, they have their hand in your pocket, taking out your money and putting it in their pocket.

I am not complaining here, I am just educating and/or sharing my opinion and the facts.

The sole purpose of any corporation is to maximize return on investment to the stockholders. It's not their purpose to be fair to the employees, not to be fair to the public at large.

The true capitalist can only exploit human capital. They have to pay market price for real estate, steel, oil, water, whatever capital they need, except for human capital. Why do you think they call the" Labor Purchasing Department, "Human Resources?" In summary, we drivers are no more important than any other resource, except without our labor, nothing would happen. And we always sell our labor for less than it is worth. That's how capitalism makes a profit.



I hate to sound like a Marxist, but that is the way it is. The capitalist can exploit this resource because we are largely uneducated, unaware, unconcerned and unorganized.

 

Spoken like a true OWS Occupier!
In other words a lot of BS intermingled with some fact!

So what if it started out as a corporate greedy money grab. That has NOTHING to do with the per diem from the IRS today! Yeah it'll sound good coming out of a loud speaker in some smelly park in NYC, Oakland, Atl, or where ever, it has BS to do with this day in age! It's OLD history! It was turned into something us workers can use to our advantage!

When any truck driver files for his Per Diem at tax time that dear old company doesn't get jack crap from it! It ALL goes into MY/your pocket!

Yeah there are still some companies that DO pay a cash per diem to workers but it's way different that what these idiot BFI's are doing! Those companies are handing cash to a worker and the worker has to turn in receipts to cover that cash and then the company turns those into the IRS to get a deduction for doing work somewhere and getting a tax break for it. I did that with Southern Bell back in the mid 70's. I ate for free while in the field and no cost motels too! It was a great deal for "We the People worker."

Even if that BFI did rape you for that per diem, Bull Crapping you that you'll do better to take it with their per mile charges you still get the chance to repair the damages that BFI tried and did to you. What they paid you never amounts to what the IRS will credit you at tax time. Let the Warners and Martins rip you off but when they finish their low life scam and you add those days you spent in the truck up and not laying in bed with your wife you will still get back more of what was legally yours to begin with.

Yes, Warner and Martin and the rest of the BFI's fall under the whiny crybabies Occupy protest as they are corporations with their hand in your pocket (the front one to make you feel good) but when done you'll still get more of what you should be getting.

This is why you keep every log book page as that is how you figure your per diem.

Yes, you can if you want itemize every little expenditure you made from a pencil to a Refrigerator or suit coat for office visits and yes if you want to really go for the "money" break down the areas you are in using zip codes which can up the ante because working in Washington, DC or Hollywood can add a few dollars to the thing but when you sit down and figure out all those stupid receipts it isn't worth the money! Keeping every little receipt, adding them up in their categories, stapling them to their spots on the main sheet and not losing a single one which can get you in a bind at an audit, adding up the days and taking the "group coverage" of a per day and not an itemized return is more than good enough. Besides just having those logs makes those boxes in the attic or fireproof safe large enough without having 3 meals, a book, a computer, a part or office supplies, extra fuel, oil, tolls, bull crapola receipts you can use, entertainment and Yada, Yada, Yada taking up more room!

Opt out of any of those ripoff Per Diem plans any trucking company offers you or just don't apply for their criminal activities to keep their hand in your pockets. They are trying to get out of paying taxes needed to fix the roads they use or fix you in case of an accident or help you to live in your senior years. I showed you how much they rip you off by "doing the math for you" which a 3rd grader can do but for some reason their payroll people get paid by the key they push on a key board! Anything more than $5 a year to figure out your per diem qualifies either as Union dues or falls under the RICO Act!

 

When SRT forced us to go per diem, I heard it was rampant at fleets, now that we're past the dome and gloom of 2009-10, SRT rescinded the Per diem and lets us drivers decide to use it or lose it. I just gave myself a three cent raise on all miles. SSSSsssweet and now my tax-deduction allowance goes back to yours truly.

 

And here I was wondering if anyone was still reading that thread!! Thanks for the retort/reply. You have years on trucking on me... This is a new career after 35 yrs of driving a desk as a company driver/owner operator.... One of the things I have noticed in my first 5 months of reading The Truckers Report is there a large contingent of very well read readers/writers, and an equally large contingent of very poor readers/writers, and a lot of in-between. One thing we writers/posters share is a loud opinion..... I will look forward to reading your stuff..
Best wishes,
Jayhawker

 

Here's the real issue . If the company deducts per diem it shows that much less income on your W2 . Say you make $50,000 and they say you got $5,000 per diem . Your W-2 says you made $45,000 . This can affect your credit , especially if you want to buy a home . It also lessens the amount credited to your Social Security so you will get less when you retire .
On the other hand , if the company does not deduct per diem your W-2 will show your full earnings but you can claim the per diem yourself and get the same deduction on more . Companies can be heavily fined for overpaying per diem . For that reason most underpay . Keep track of your eligible days . If you are underpaid per diem you can deduct the additional amount on your tax return .
That brings something else up . Some drivers may not have enough deductions to itemize unless they claim the per diem themselves . Once you qualify to itemize you can deduct many small items as well