Question about Interstate Distributors

Love the avatar.
Don't really understand your post.

 

Your question is not grammatically correct.
The company said something like, you will earn .28/mile plus ??/mile per diem. Most companies pay around .10/mile per diem. Some more, some less. The per diem will be non taxed and while increasing the take home pay, it will reduce the perceived gross income. And this can have an affect on your ability for loan approval and also affect any worker compensation payouts, if injured at work.

 

If he has a choice not to take it I would not.

Like Buzzard said, it understates your income.
What it does is get the mega out of paying what they should to match your Social Security.
The more you put in the more you get at the end, so you lose that way as well.

The standard per diem deduction when not at home, any day he's working and not at home domicile, I believe this year is $72 / day for Arizona residents. Might be nation wide, or state by state.

So at the end of the year say he's out 250 days.
That 250 x $72 right off the top at tax time.

The mega's typically hold back like $.10 mile or something like that if you take per diem option, and they tell you like $.04 is for an administrative fee.

What it does is let them off the hook for millions of dollars in SS tax contributions a year.