cpm on diem

Yes. Both companies I've worked for have done it. It's called "per diem skimming".
The company I work for now, told me during orientation that "I wouldn't make less money" with the per diem. I took this to mean, as they no doubt expected us to understand, that I would receive the same per mile rate I was promised. You end up with a somewhat bigger paycheck each week, but the truth is, you could've gotten that money back at the end of the year, anyway.
So the trucking company lines it's pockets with a tax break intended for the workers, by cutting the driver's cpm rate. If you don't look too closely, you seem to be making more money. Nice little accounting trick, huh?

 

If the per diem and the taxable rate add up to what he was promised, then the company is not skimming.
In my experience, I ended up with a much smaller refund. If the company is withholding properly, you shouldn't have to worry about owing anything.

 

I'm glad someone else see's it! What a screen name. Now let's see an appropriate avatar!

 

Ewww!

 

why do people settle for this?
Im sorry but the minute someone starts playing games like this, I am done.
I feel like I am reading about some guy who bought a used car and just found out its a beater not in like new condition.
May is not the only trucking company out there......
Look into something else before they take anything else from you.

 

Well, I opted for the per diem so I can pay my credit cards off quicker. Also, I was told that the Payroll Dept. could provide documentation showing the diem as income for the purposes of loans, etc. Haven't confirmed this with them, but it was an OCM that told me this. After my bills are all paid, I may reconsider this. And yeah, I did notice the lower CPM...

 

I also opted for the per diem, I can do without the big tax refund in a year, at the moment I wanted more money up front, for now anyway. Just starting out, and i have bills to catch up with ######! lol I told myself after I've been here for a bit and 'settled' into the industry then I'll look at it again and see which option would be better for me

um, did I miss something or did you miss the part where the per diem was optional?

 

The tax percentage you save on the SS side (7.51%) is a wash because the company reduces your cpm by .02 in order to be on the program.

Workers comp pay is also based on your gross wage, which per diem is not included in your gross wage. Same with UE insurance. I was also told that most lenders will not include per diem into your wage consideration in the event you need to get a loan. However, its your money, do with it as you please

 

I totally agree with u on this, god forbid u ever get hurt you're screwed.

 

I've always looked at the guys who opt in on per diem like the one's who pay a check cashing $20 to cash a $200 check