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Per Diem Pay

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by rdonovan1, Jul 23, 2008.

  1. Jul 23, 2008 #1
    rdonovan1

    rdonovan1 Bobtail Member

    46
    2
    Apr 12, 2008
    Albuquerque, New Mexico
    0
    Hey all,

    I was just wondering what people's opinions are relating to per diem pay. Is having per diem better or worse?

    I have been driving truck for over 5 years now and this is one area that I have never really understood and based upon my recent pay stubs I am starting to think that I would probably make more take home pay if I were to get rid of the per diem stuff, but at the moment I am not quite sure and I am hoping that maybe someone out there might have some helpful information that I can use that will help me to decide as to whether or not I should keep per diem or as to whether I should get rid of it all together.

    Robert.
     
    rdonovan1, Jul 23, 2008
    rdonovan1, Jul 23, 2008
    #1
    centralnyguy Thanks this.
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  3. Jul 23, 2008 #2
    RickG

    RickG Road Train Member

    12,812
    6,137
    Jul 22, 2008
    Owensboro , KY
    0
    One problem with per diem is it shows your earnings to be less than they are which could reduce your borrowing ability when applying for a mortgage or other loan . If you don't get per diem you can claim a deduction (something like 80% of $52 per day ) when you file your taxes . Less gross income also lessens your Social Security contributions and later benefits and may also reduce 401K contributions .
     
    RickG, Jul 23, 2008
    RickG, Jul 23, 2008
    #2
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  4. Jul 23, 2008 #3
    badsey

    badsey Medium Load Member

    362
    56
    Oct 9, 2007
    Green Bay, WI
    0
    it depends on your per diem:

    #1. If your company is giving you $50 a day for hotel and food -take it.

    #2. If your per diem takes away 2cpm -I would stay away, and start doing your own taxes

    #3. An even per diem. Still better off doing your own taxes and taking the per diem.

    -Company drivers
    True per diem should be #1 or you should be taking the per diem yourself. You are most likely saving thousands in taxes by doing your own per diem and clothes, cb etc are deductable in that they lower your Agi (savings depends on tax rate)

    If you are O/O it's all 100% deductible and is taken off income. (100% deduction)

    The Irs has booklets to figure out per diem. It's only hard the first time.
     
    badsey, Jul 23, 2008
    badsey, Jul 23, 2008
    #3
    rdonovan1 and venne Thank this.
  5. Jul 23, 2008 #4
    rdonovan1

    rdonovan1 Bobtail Member

    46
    2
    Apr 12, 2008
    Albuquerque, New Mexico
    0
    Would it be better to let the company do the per diem or should I be doing it myself. I am just wondering because at the moment the company is doing per diem and when I look at my it looks like they may be ripping me off, but it is hard for me to tell at the moment and that is why I am trying to figure it out, as I want to make sure that I am getting paid for every mile that I run properly and so that I am taking home as much as I possibly can.

    I can deal with the IRS and the state tax agencies afterward as long as I am doing everything on my part to make sure that the company is paying me not only on time, but accurately for every mile that I run according to the agreement that I made with them when I started about as to how much I would run and as to how much I would get paid per mile.

    Do either of you have any good suggestions and advice as to which way I should turn to make sure that they are not screwing me over on my pay?
     
    rdonovan1, Jul 23, 2008
    rdonovan1, Jul 23, 2008
    #4
  7. Jul 23, 2008 #5
    ChromeDome

    ChromeDome Road Train Member

    3,706
    2,086
    Jun 10, 2007
    Lakeland, FL
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    My company does not give the choice. We have to let them pay per-diem. It sucks bad, and I wish they would not. They do this because it lowers the amount they have to contribute toward your payroll tax, social security and unemployment.

    The only way it will help you is that you will take home more each pay peorid, because this money is not taxed.
    My company gives us .08 per mile in per-diem. Since I am on the road allot, this will not get close to touching what my deduction would be. So I just have to look at my logs and figure how many days I am out. Once I know this I can figure out the ammt of per-diem I can deduct for the year, and subtract from that the amount I was already reimbursed.

    To me there are too many negatives with it though. If they actually gave you 80% of 52 dollars a day, for every day you are out, and not lower your normal mileage rate, then great. Otherwise it is not good for me as a home owner. I really need all the deductions I can get each year. And with them giving some in a mileage rate screws me. Also, they are paying me money I would have gotten anyway. So I would rather them pay me more per mile and let me take care of the per-diem.
     
    ChromeDome, Jul 23, 2008
    ChromeDome, Jul 23, 2008
    #5
    rdonovan1 Thanks this.
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