Per Diem is Great...

We have the perdiem, it works for us because it is LESS than the allowed 52.00 tax deduction per day, so we get to claim the difference on our taxes.

As for lower SS in older years, most drivers end up paying at the top of the SS deduction yearly thats what your SS check is based on when you start to draw.

We have never had to pay in, always get a hefty rebate and its just the 2 of us, so I assume anyone with children would get back even more.

As for loans on check stub it is net and gross, anyone who knows about the trucking industry this wont be a problem. We just got a fixed mortage 3 years ago and the perdiem never caused us a problem....maybe we are just lucky I dont know but so far it has worked for us.

 

I don't believe that drivers make the top SS amount of tax.

What can happen to the driver is that the reduced amount of the per diem can affect the actual amount used in the calculation of the benefits. It is most important the last 5 years of employment. The greater the earnings that are in there, the larger the benefit is for drawing the SS.

In the accounting firm I worked at, we tried to keep the taxes lower until about 10 years from retirement. The goal was then to maximize the amount of taxable SS for this purpose.

Many of the loans that are made ask what the driver makes. Some of the finance wizards do not have a clue about trucking.

The comment on the workmen's comp is that when injured, the base salary will be the amount used in the per diem plan. Therefore a lower amount.

 

OK, So now that I've been out here a little over a year, You're telling me the
.40/mile(.31+ .09 per diem) I am making now is a bad deal as to the flat .34/mile
I was making with a previous company? No child support, garnishments, or
other special tax situations, just married wanting to make the most of the situation.
Please help, Thanks.

 

I think I need sometime to understand.

 

Yes . If your employer doesn't pay per diem you can claim the 80% of $52 per day when you file your taxes ,

 

No it's not a bad deal. You can still claim the difference between what you get for per diem and what the irs allows per day.

 

Do you think getting $5,000 a year less income credited towards Social Security retirement or disability is a good deal ?

 

I do. I'm 33 and have no illusions that SS, retirement or disability will be there for me. You could take the $5,000 a year or what ever and have your own fund set up for SS, retirement or disability and not assume that just because you paid into the gov. all your years that it will be there to fund your retirement when it is time.
Trusting in the gov. for your retirement in my mind would be the same as asking a crack addict or a degenerate gambler to hold my money for me.

 

Sounds like a good plan if somebody would put money aside every week but how many do ? But employer pays the SS tax . That's why they want to show per diem rather than income .

 

Agreed 100%. Most is looking for someone else to do the "work" for them instead of helping themselves. No matter what plan someone chooses they oughta know that the more you put back the more you got. If your on Per Diem put extra money back. If your not on Per Diem put extra money back. Lol.....