Going from Per Diem to regular pay

How are you paid?

Weekly?

You can check it out on the IRS, I can link after I know and then you have to figure the social security and medicare.

If weekly, then page 44 of this link.
http://www.irs.gov/pub/irs-pdf/p15.pdf

Social Security is 6.2%
Medicare is 1.45%

 

ssi retirement will be lower workmans comp will be lower your yearly tax base will change your company will make a few extra bucks off you

 

What percentage or amount per mile are they claiming is per diem, now?

Per Diem, the way most sleazebag companies pay it, is a suckers bet. Per Diem in the real world is paid in addition to a normal pay rate, not as part of it.

Your paychecks will be a little smaller, but I bet you come out ahead overall by dumping the per diem, (As long as it's the fake per diem these companies offer)

 

If you adjust the number of exemptions claimed by re-filing a W-4 form and if you contribute to a regular 401k (if offered) or a reg. IRA, you shouldn't notice much of a difference. Changing the number of exemptions will change how much tax is taken out & contributing to a retirement plan will lower your taxable income...now. There are a LOT more to consider than this, and you should talk to a tax pro that understands trucking; but short answer is both things I mentioned will do roughly the same thing as per diem pay.

 

Is the OP thinking long-term or short term? If a trucker can see the bigger picture come tax filing time and can learn to properly do the standard meal deduction and itemize, i doubt there is any trucker that will NOT come out ahead financially by going away from per-diem. But if the driver is thinking in terms of living week to week and can not see so far down the road as to imagine a larger refund check next year, then I guess per-diem makes sense to them.

 

You have to consider what their other deductions are.

I did not have a mortgage so I had little in the amount to help. Per diem is then subjected to the 2% floor and you lose a hunk of the deduction. So, you have to consider all areas.

 

like OFTOTR said per diem should be paid on top of what your getting paid...the company I work for pays $29.00 per day above and beyond my salary earned..

 

A tax refund is just money that was overpaid. Why give the government an interest free loan. I would rather underpay and then just pay in the difference at the end of the year. Here's a pic of what my pay checks like like on PD vs NOT. $60 more that week

 

Seems like some are missing the entire point. I understand fully that a refund is not ideal but the point I'm trying to make is the standard meal allowance deduction allowance for truckers more than off-sets per-diem packages offered by most carriers.