Per Diem

per diem the way schneider has it set up is to shift 12.5 cpm from your milage rate to a per diem this does 1 thing and thats lower your gross taxable earnings on your w-2 which means you pay less taxes. it also lowers your social security benifits since they take the gross taxable earnings for your highest earning years and thats what they base the benifits on and MOST loan companies look only at your gross taxable income when applying for home and car loans, however it does increase your take home pay which is a pluss if you are not in your highest earning years which starting in the trucking industry id hazard a guess you arnt and you arnt looking to get a loan for a house or car then the per diem is a good option but as always your milage may vary and check with a tax professional or financhial planner for your speciffic needs

 

As I continue to look into this subject of per diem, it looks more and more like a bad option for a driver, if that driver is lucky enough to have it be an option in the first place (as it thankfully is at the company I drive for, which is Marten). It appears to me that trucking companies are resorting to scam tactics to help offset rapidly rising fuel costs.

Marten's definitely pulled out the smoke and mirrors to fool any driver they can, into believing it's in their own best interest to spend 2 cpm to sign up for an 11 cpm per diem plan. I've driven nearly 10 years at this co., happily I might add, but this is unacceptable...I'll be quitting later this year (at the right time, based on when vacation and bonuses are paid) even though they didn't force their scam on me.

 

The easiest way to look at things is to realize no company is going to provide anything that cost them money.

 

Nothing can prepare a driver for what I witnessed in a truckstop. Driver on Per Diem, talking to his tax preparer...and finding out he OWED $5000...that's right Five thousand dollars !!!

The entire truckstop knew his business in about 10 seconds. To say he was pissed, would be putting it mildly.

On top of that, he has reduced future social security benefits.

 

So, next month if Schneider asks me if I want per diem I should say no? I am heading there May 14th for study hall to get the CDL permit and beginning 14days training May 17th. I don't need to have tax problems, and actually I have always wanted to get a refund at the end of the year than to have more money during the year.

 

Personally, my opinion is NEVER take the per diem. Just my opinion.

However, you can reduce child support payments by using it. And many companies use this to promote the per diem to their drivers.

As with anything, it has its uses. Most are negative for the user and his family.

If a company (like JB Hunt) tells you that you have no other option, than to take the per diem. RUN...as fast as you can.

So what if you have a lower taxed wage earnings. You're going to pay taxes anyway. Why give up the 100's of dollars it will cost you over the lifetime of earnings, to bring home $25-$75 dollars this week?

You're trading your future retirement earnings, for an immediate benefit of peanuts. Meanwhile your company increases their daily earnings, by reducing their tax liability. The CEO will see an IMMEDIATE year end bonus for cutting cost. That will be a 6 figure bonus most likely.

Sure sounds like an even trade, doesn't it?

 

It sounds like they are trying to bully people into taking the bait. I'm not fish, but if they require that payment type that sucks. I haven't talked to Schneider about pay yet, except that my training pay starts June 6th.

I am lucky enough not to have children or alimony. I am happily single. Don't get me wrong, I love women, but it never seemed to be worth all the divorce crap if it happened. But thanks for your opinion. Hopefully I can make enough to pay for my over the road life without the per diem idea.

 

I bring home an average of about $800 a week, give or take.

My withholdings are done as single, claiming no dependants, withhold an additional $10 weekly.

It can be done