Tax bomb ?

No deception intended whatsoever. I do not give "shady" advice at all. Sorry if you feel that way, but you seem to be quite critical and negative. How many years have you been a CPA exactly? I intended to point out that owner-operators will still have deductions and w2 employees do not. SOME employers are paying employees perdiems as a result of these tax changes, but there are many cheapskate employers out there in truckdrivingland who will not.

 

Critical yes, negative no. I am not a CPA but have been a DOT regulatory compliance consultant since 2009 and a fleet owner since 2004. I call it like I see it and call out bad advice when I see it. As written your advice was bad, further explained and qualified it makes sense.

As for companies paying per diem, I don't understand why the employer wouldn't want to, it saves them so much more then just payroll taxes. It reduces their worker comp premiums and more. As an employee I wouldn't want to be paid per diem, I would rather manage my own finances, plus it reduces my gross income when calculating worker comp and social security. Not interested.

 

But if you were formerly able to deduct perdiems as an employee and now you can't, it increases your taxable income. It's not just truckdrivers but pilots, flight attendants, and pretty much everyone else in transportation who formerly were able to take per diems.

 

Absolutely correct and it sucks. I hope there will be a fix for this, the transportation worker per diem has always been a great way to recover expenses without the need to keep receipts.

Not being an arse, legitimately asking, what options do employees in the transportation industry have to recover some of the money spent simply to do their job, other than becoming independent contractors?

 

There's this organization called The Brotherhood of Teamsters.
For decades they kept mega trucking owners from ####ting all over the working man.
They were deemed "bad" by the owners of mega trucking, and ignorant young people bought into it.
Maybe they weren't so bad after all.

 

There is a party who would like to render Unions completely useless. Non-deductibility of union dues is part of their strategy. Laughing called "right-to-work" states are another.

 

There is some pressure to make some adjustments to the tax bill, although I don't see many taking action until they file their taxes and see what all they will lose. Already I have seen some credits and deductions come back, including mortgage insurance premiums and residential energy credits. I spoke to someone at PRODIEMS who is suggesting everyone put pressure on their elected officials.

 

On per diem pay this will lower your social security earnings right so if you make 70 k and your per diem is 15 k you are making 55 k right

 

Yes, according to some lenders, insurance claims adjusters, and the Social Security Administration

 

It is criminal. If the person paying you dictates how you do the job then you are by law an employee, not an “independent” contractor.