Perplexed by forced per diem option?

In truth, the company is at fault and should have corrected this when the payroll was done. The driver is not responsible for their error.

 

Are you suggesting that the driver doesn't, or shouldn't owe the additional tax?

 

No. I am stating the employer has to file corrected documents. They are responsible for the error and violated the law.

 

OK, just wanted to clarify.

This is pretty simple. Company says, "You got some tax-free income" when in fact, it is taxable. Company fixes the error. Company pays their employment taxes, driver pays their income and employment taxes.

 

$59 divided by $.20 is only 295 miles. And we can only deduct 80% of the $59, correct? So that is $47.20.

Keep in mind you get no perdium on a lay over. So you can deduct $47.20 a day for your lay over even if you are on a per mile perdium, correct?

Just give me my durned money, I'll pay my tax man to do the paper work. I can handle my own money!

 

Depends on how your company handles it. My drivers get per diem based on days out, not mileage. So they get per diem even on a layover.

I'm sure you can handle it. But you will have more money in your pocket with company paid per diem.

 

That was a well written article that explained in layman terms how a per diem works in the U.S.A. Its sad to see from the postings that followed how many drivers didn't seem to understand it.

Thank you!

 

My company gives a flat 160 for per diem a week. Im out for 4full days. That works out to be $40 a day. Can i claim the rest of it at the end of the year?

 

Yes, IF you itemize deductions.

 

Ok thanks for the info