Explaining percentage pay and per diem

According to OOIDA you can claim 80% of 63.00 per day away from home. This is what I do currently. I don't agree with companies doing forced per diem; they say it's for your benefit but it isn't. By paying you forced per diem they are avoiding paying payroll taxes on your full compensation. I think it's very dishonest. You should claim per diem on your own taxes at the end of the year. If they are paying 20% of the linehaul then, yes that is low. They might make 2.50 a mile but if your percentage is of the line haul then that 2.50 is a meaningless number.

 

Per Diem just means per day. The DOT limit is for tax purposes. That is the amount you are able to write off without receipts. The company appears to be giving you $150 per day plus 20% of the gross to the truck.

If that is what they are offering, you are going to be running drugs or smuggling workers across a boarder.

I would get the offer in writing and take it to a lawyer.

 

Industry pay should be 28%. Trucks should gross $1200 a day. That puts the pay at $336 a day.

20% of 1200 is $240 plus $150 works out to $390 per day.

No company last long overpaying anyone.

 

per diem: just = per day.

He is paying you $150 per day plus 20% of the gross.

When using per diem around here we are often talking about the per diem tax break that has been allowed for OTR drivers up until Trump changes the tax laws.

You need to find out how taxes are paid in that job: Is it a 1099 or w2?

Also find out what your hauling and for what customers? What is this guys revenue on the loads?

Just because he pays your a per-diem stipend does not mean you can use all of that as tax free income. The portion of it you could use depends on wether you are away from home for the entire day or not with the job.

 

Somebody is screwed up then.

You could claim a portion of that as tax free but not the whole amount. You will be paying the balance of that in taxes at the end of year.

I would look past that job, especially on a percentage; I am sure many other things are screwed up.