Down the Perdeim Rabbit HOLE ️

Zero sum gain, not game.

 

It also reduces what you're paying into Social Security - and when you go to the bank for a loan on a house, your tax returns will confuse them too.

A smart man would take the per diem portion and invest it wisely to overcome the SS shortfall, and have a decent sized cash downpayment for a house - but, well - you know, most folks just see the "Tax free Income" part of per diem and think it's a great idea.

 

It is their way of having to pay less in payroll taxes, and putting the burden solely on the driver, kind of a dirty little trick. There is lots of dirty little tricks in this game, the other one I don't see pop up to much but is perfectly legal is to put your workers on hourly and not pay overtime, as long as the fall under ifta and have one truck out of home state per day they do not have to pay overtime.

 

Agriculture is also exempt from overtime.

Per diem went bye bye in 2017.

 

The federal meal allowance went bye bye in 2017. Actual per diem as part of your wage is still perfectly legal for employees.

 

@Long FLD is correct. If you are a W-2 employee, you practically speaking no longer have the deduction for being away from home and spending on your meals and entertainment that you once could use. The benefit to the driver of getting per diem dropped considerably. To me it seems like a topic some few people obsess over when it's got next to no benefit. I'm sure one way is SLIGHTLY better for the driver, but it seems like more complication, more ability to smuggle in dishonesty from the company for not much benefit. I'm Scottish, so I understand the desire to make life decisions over tiny amounts of money. But it's not something I would seek or avoid when choosing where to work. Maybe I don't understand enough about the topic. I do understand it SLIGHTLY reduces the income bank loan officers and Social Security care about but when I look at the amount of money involved, it's awfully small.

 

I used nights away from home.

 

You have to weigh the actual effects per diem will have.
You will not be taxed as much and your reported taxable income will be much less.
Some here have said it is a tiny amount, but it could be more like 20-25% of your income that is not taxed. It is around 65 dollars per day, and how much do you make each day?

That might be good if you have to worry about something like a child support obligation, but in most other ways it is bad.
Social Security payments are based on taxable income, loan or credit card applications use your taxable income as the baseline.
If you get injured on the job, what work comp pays you is based on your taxable income.

Those few dollars gained each week by taking per diem may not be all it is cracked up to be.

 

Yes to claim the meal allowance which was a set amount from the government.