The per diem is a no brainer.. for sure.
Especially since the new tax laws are in effect.
But, they shouldn't be charging a premium for that benefit.
1.5cpm is a lot of $ on 120,000-140,000 miles.
Pros and Cons of Roehl's Tax Free plan?
Discussion in 'Roehl' started by doninwooster, Feb 25, 2018.
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Yeah, I'm not sure about the penny & a half reduction thing. The other option is to keep things as they are for the extra penny and a half per mile and lose the advantage of per diem altogether, because it sure looks like that option is going away for company drivers this year.
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companies are in business to make a profit no matter what, if the money is not coming from a service they provide they will take it from the workers. Welcome to capitalism.
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pmdriver Thanks this.
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No doubt the carriers pushed hard for this "tax cut" that convinces many to participate in the per diem plan, helping reduce the employer payroll tax liable considerably. This also shafts the driver later in life when they start looking to take what they were forced to participate in, social security benefits (it's the principle of the thing). Also, if you get in an accident or suffer a health problem causing you to lose work and use your insurance to provide income while away from work, you're going to be judged based on your new "reduced wages income" that the per diem resulted in. Same goes for an OTJ accident and workers comp benefits.
Drivers should write their representatives and demand they reinstate the itemized deduction for meals and other expenses of OTR drivers who sacrifice so much and are forced to deal with the many issues of living on the road, in between truck stops.
I used to stay in a hotel every once in a while to get out of the truck for a night. Now, I have to think twice before incurring this expense as it's no longer deductible. How is this good for the economy? How is this good to keep me in a job that nobody wants to do?
Rant over for now. But all OTR drivers who stay out for extended periods like in excess of 300 days a year, should be mad at what was done to you [in the context of the average taxpayer got a benefit, with no offsetting liability]nordrunner, JOHNQPUBLIC and jammer910Z Thank this. -
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The reality is the tax law changed. There's always winners and losers in these situations. If per diem deduction is not an option now on 1040 schedule A, then a company driver has one of 3 options. Period. -
You said a mouthful !
100% correct. -
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So if I understand this correctly, let's say a new cdl driver for Roehl gets 37 cpm. In the Roehl Tax Free Plan, they deduct 12.5 cpm, and add 11 cpm non-taxable as per diem. This is 35.5 cpm, correct? Don't know if this is an optional plan with Roehl or a requirement. 25.5 cpm with 11 cpm non-taxable, vs 37 cpm. Since company drivers can't claim per diem either way anymore, what is the benefit beside lower taxes now? Later, Social Security benefits, etc. would be lower, would they not? Maybe I am confusing myself.
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