ask your questions about prime inc here

The IRS allows a carrier to make per diem payments to employees to defray the cost of living on the road. The payments cannot exceed the allowable per diem deduction on ones taxes in any given year. Under strict limitations its a win-win for the carrier and the driver. Some carriers require that you forfeit a penny or two per mile for "administrative costs..." a thinly disguised kick back. That makes it a loser for the driver. This doesn't happen at Prime. Its also going to depend on your individual tax situation.

You can deduct $59 per day for per diem each day you are away from your tax home, 3/4s of a day on arrival and departure days, but you must be able to log a legal HOS break. Take the total number of days x $59. As a transportation worker you can claim 80% of that figure on Schedule A as a deduction against your gross income.

A carrier can make payments towards that deduction in an approved program. Let's say you earn 43-CPM in a company lightweight. Prime pays you 8-CPM of that as per diem AND 35-CPM as taxable income. 18.6% of your income is now shielded from taxation, and Prime pays less in taxes on your decreased taxable income. You still are being paid the 43-CPM, and can deduct anything more than the per diem payment up to the maximum allowable on your tax return.

Downside... it does lower your gross income for social security and workman's comp purposes. IIRC, its no longer an optional program for company drivers at Prime.

Upside... the income shielded from taxation is 100% shielded. You get the full benefit of that. Schedule A deductions only bring you about a 30% return since all it does is lower your tax rate. If you cannot itemize your deductions, its the only way to get any benefit at all from the per diem deduction.

 

Yeah it just sucks when buying a house. Just got off the phone with the lender and because it's not "income" even though I spend it like that and to us average Joe's it's no different. The 13k in per diem the underwriter originally put in as income just reduced the loan amount by 68k! From 308 to 240. Still not too bad but that's a lot more land I can get with 300k. It's great until you need to show the income to get financing.

 

What is the "per diem" about" with Prime[/QUOTE]

Prime pays per diem at .08cpm it's listed as "travel allowance" which some companies pay vs actual per diem and they will show it as income on a 1099. But as IP stated that's not the case with prime.

 

You need to shop around for a lender who understands what they're looking at on a W2. The guy you're dealing with is a schmuck. Look for an outfit who deals with teachers for instance.

 

Any one has the backing formula for the backs for psd training for the cdl test?

 

so do you see this ".08 p/m" on your paycheck? or is it just some sort of accounting figure used for tax reasons....

 

Lots of practice...

 

OK all.... Just spoke with my recruiter... she said she can get me in for the 3rd week of Jan.... only one caveat... due to my residence (Boise, ID)... I will have to go to the lease program (said there would be difficulty getting runs that get me home)... dont know anything leasing or how it works or even if it is worth it.

Does anyone know if there is a way around this? She did say however, that I could make more money per week as a L/O... is that true?

ANY advice would help.

 

I don't buy that one bit. You are so close to salt lake terminal and we get a lot of potato type product from that are anyways. I hope ironpony responds to you on this one because something seems fishy there.

 

Even if that was legit. If they can't get you home frequently due to location. Do you really wanna pay that much fuel to get home when you do go? I love prime and all but if those were my only options I'd walk.