MANDATORY COMPANY PAID PER DIEM: One of many Scams to screw company drivers!

This is the problem. Most guys coming into this indusrty are already behind the 8 ball with bills, and most just racked up another few grand at driving school. They don't ask questions, they just take whatever is offered to them as they need to get some income rolling in. It's shortly after that time they realize they are making about the same as most people working at Wal-Mart for a weeks work and get upset and come on here complaining about it being the COMPANY'S fault for them being ripped off or what have you.

 

I only worked for one company with per diem pay, a long time ago, before I knew better. In 19 years, and 4 different trucking jobs, that's the only year I owed Uncle Sam more money in April. Per Diem is not doing any drivers any favors. And I like where I work, for the most part, but if they try to start per diem pay, I will be gone before its implemented.

 

while most of this is true, what you have in bold seems to suggest that the company is stealing the balance of cpm. They are not. You will receive the balance less.02 nontaxed. I had a check last week that paid more in untaxed perdiem pay than it did taxed cpm.

I agree. I will be getting out of it as soon as policy states. I'd much rather have all my earnings accounted for for things like SS or workmans comp or unemployment should that become necessary. In addition , if someone is going to F up MY money it will be me doing it!!

 

The bigger problem is some carriers actually charge a "handling fee" for providing this so called "money saving feature" of as much as 2 cents/mile and try and make it sound as though they are doing the driver "a favor". So essentially they SAVE money (skim money off the top), while in the end COSTING the driver money (vs. itemizing and doing your own meal allowance deduction). The driver ends up getting screwed coming and going. It's really sad what some are doing because too many don't take the time to figure out (or can't figure out) what's really going on.

 

Explain exactly why perdiem is bad?

 

Marten's mandatory per diem administrative fee is 3 cents.

 

As drivers who will be away from home on a regular basis we are allowed $59 a day break on our taxes for things like food etc for being away from home.

Now many companies are offering to "administer" this for drivers. Giving a portion of your CPM to you as a tax free part of your pay. Now what this does is allow the company to NOT pay their portion of taxes on YOUR earnings. AND they will charge .02-.03 cpm to do this.Thereby reducing your taxable gross income. Doing so makes you APPEAR to earn less on things like social security, workmans compensation( should you get hurt) , unemployment compensation.
Your checks will reflect a taxed cpm rate and then a perdiem amount.

HAve you ever applied for a loan? They ask for gross income right? That means your TAXABLE gross income. In some cases , depending on th emiles you'll get we're talking about an 11-12k difference, being on a company administered peerdiem program.

OR you can seek a company without it or opt OUT of this compnay offered" perk" and take the deduction yourself Along with other road expenses.

My suggestion is to get a tax guy. have them walk you through everything and see what makes the most sense for your situation. Let the cpompany take money from your pocket for admin fees and redution of ss etc OR take th edeuctions for yourself.

 

I don't know why people keep perpetuating this myth.

I got a car loan through Ally (formerly GMAC), and since my per diem was a regular portion of my pay, it counted as income for qualifying purposes.

 

heres one for you. They take it out on cpm , yes? Ok what if you sit AWAY from home for 4 days. Your company refuses to pay uyou fo rnot running. ANYTHING. if you were on company perdiem you aint getting jack.

IF you weren't and sat for those four days you could claim 4x59 on taxes for those four days.

The IRS standard being away from home in the course of business.