What's wrong with per diem pay?

Idiotic statement. The most a married person may see will be about 32 dollars a paycheck and about 40 for a single person with this so called tax relief. By no means will a driver get an additional 15000 dollars in his take home pay. The most he or she will see is a around 2000 dollars extra a year. I don't know where you are getting your info from but it is truly not informed.

 

Really I'd always run from it as quick as I could, then have it claimed on my taxes later on.
A double plus, I'd get the full amount of social taken out and get the extra pay at the end of the year.

These bigger companies have it set up so the gain is very little for what you haft to give up.

Trust me I used to run from it like a bat out of hell. If you have the option to get out of it, do that take it. Its never to late.

 

Hi Streetglider,

How are you?

I had been receiving this, (as you call it), "idiotic statement" information from several elderly individuals who were retired from the trucking industry, who sadly and unfortunately have passed away with the last 6 months to a year.

The 1st. thing that was mentioned to me is that an "administrative fee" is necessary to pay for and maintain both the computer programs and the payroll personnel needed to keep the per diem programs running smoothly in many of the trucking companies in the U.S.A..

The 2nd. thing that was mentioned to me is that a lot of the trucking companies, (large and small alike), could end up becoming bankrupt, going out of business, if they were required to pay the additional monies into social security, Medicare, workman's compensation, unemployment taxes, 401(K) plans, medical and dental insurance plans.

The 3rd. thing that was mentioned to me is that companies as the United Parcel Service, (UPS), need to have the Teamsters Union "let go" in order to maintain a competitive advantage against other companies, (both foreign and American alike). The Teamsters Union is pricing their workers out of a job, the very people that they are supposed to be protecting and looking out for.

The 4th. thing that was mentioned to me is that the union shop states need to become right to work states to guard against both climbing inflation and unemployment at all levels of society.

These 4 things are really for the readers of the trucking forum to decide and comment on. I personally have "MIXED" feelings about all of this.

God bless every American and their families! God bless the U.S.A.!

 

That's difficult to say and no one can know for sure. However, I hate the milage per diem as it does not take into consideration days with no miles. Unless you get home every week for a 34, then you will probably have some short or no mile days. Since you are away from home you are eligible to take the per diem deduction, BUT ONLY if doing it when you file and get zip if using the milage per diem rate.

 

Employers don't charge administrative fees for any other deductions/withholding. Why is per diem different? The employer is responsible for knowing what the cost of doing business is and taking care of it. If all employers are playing on the same field, then a company that has to use tricks of accounting to simply survive, then they are doing something wrong in too many other areas of the business and maybe they should go away.

I also don't believe that survival is the main reason for many of the companies to do this, but rather GREED (not to be confused with diligently running a business to be profitable).

 

1000k = 1,000,000 = 1 million.. a year in tax refund?????

 

Per diem is designed to be a IRS tax advantage for the worker. The company's have merely found a way to use it as a operating expense on their part. It's two fold. Charge an admin fee to use it and claim it on their taxes as a cost of doing business that way they can write off more for themselves and the worker cannot. They court you with the idea of " oh you don't have to keep any paperwork or reciept" but in fact they are keeping the paperwork for themselves to use as deductions for their company. It's a win win for them but the driver loses in the respect of his own deductions and future buying power such as a home. Loans are based on debt to income ratios so if a worker shows less income it's gonna be less buying power. If company's are in the shape they are and need to feel as if they need to pass operating cost to the workers then they themselves are mismanaged and are the reason for this industry as well as other industry's for failure being passed on to consumers.

 

Here we go again, not sure why I'm even saying anything but ANY MONEY you are paid by your employer IS SHOWN on your W-2. It doesn't make a rats rear end difference what, how or anything else the company does as far as per diem. If you got paid it will be on your W-2. Your GROSS income is what 99% of lending institutions use to determine your eligibility for a home mortgage etc. So if you make $50,000 a year then your W-2 will reflect a GROSS income of $50,000, it doesn't matter whether you received $35k of that taxed and $15k per diem, your W-2 will still show $50k. If it doesn't and your receiving pay that's not being reported on your W-2 then #1 your company is breaking major federal tax code laws and #2 you can take your full deduction on the amount reported on your W-2, illegal yes but you could do it.

As for whether or not per diem is a good thing, for me it's a HUGE benefit, my CPA runs my tax return both ways every year and my companies per diem works out in my favor every time. A forum is not the place to decide what's best for you and your financial situation. Call a CPA that knows trucking, have them look at your situation and they can show you which way is better for you.

 

Box 14 I believe it is on the w2 is where the per diem is noted not in box 1 for total income. It is not included there ,you would also have to drive ~655 miles a day in order to break even if you get say .09 cpm. perdiem pay. Anything less and your losing money that can be deducted. So unless the company is giving you the IRS. Allowed amount for deductions I would do some serious math