Per Diem

I'm an O/O, I file as an S corporation. I'm on the payroll of the S corp. The S corp pays part of my salary as per diem, it's been that way since I started it 3 years ago.

Which deductions for O/O have been changed?

 

not sure about that 10 cents a mile with the irs but is under the old deduction .... I pay myself 58.00 per 10 hour break not taken at home as owner op

 

I've never liked pre-tax per diem, especially when the company charges a fee to process it. I much prefer to have higher income reported for credit and social security reasons, and get all my money back in a refund.

 

I’m rarely out over night, but I can choose whether or not I want to claim the night I’m away from home on my time sheet.

 

My company started "encouraging" a per diem pay structure a while back, but I refuse to do it on principle alone.

The only reason a company does this is to save millions in payroll taxes. So why do they need to pay me less per mile and charge me another 2 cents per mile on top of that as an administrative fee? Do they have to pay for extra accountants to keep track of all that money?

Meanwhile, i'm taking home a whole $40 more per month and taking it in the shorts on lowered vacation pay, workman's comp pay, unemployment pay, and social security pay.

 

to me when the company is saving 6% on the payroll tax and the other stuff then they charge you 2 cents a mile . that's saying something about the character of the company .... cheap ######## comes to mind. .. I thinking I would be looking elsewhere for employment

 

New changes in the per diem situation for drivers, as per the recent news article (October 4, 2018) and other resources:

“Company drivers can no longer deduct meal per diem from their income. The Taxs Cut and Jobs Act of 2017, the tax reform cleared last year by Congress, removed per diem deductions for company drivers starting for the 2018 filing year.”

Source: https://www.overdriveonline.com/irs-bumps-up-owner-operators-per-diem-allowance/

FMI: https://www.overdriveonline.com/tax-reform-means-annual-savings-of-2000-or-more-for-owner-operators/