First full weeks pay...12 cents per mile??

That's right. They take out .02 for per diem. That .10 isn't taxed. You actually came out a little ahead by them doing it that way.

 

You know I really am not sure to be honest with you. I am sure someone will come along and be able to give you a better answer. Sorry I couldn't help you more.

 

At my first job, the per diem rate was indeed part of the pay package. I'm not sure about the missing two cents. The twelve cents does seem about right, though.

 

Yeah I use to work for a company that did per diem and they kept .02. I had someone explain it to me but it was so long ago I can't remember exactly what they told me.

 

The missing two cents probably has more to do with the fact that most companies pay a lower rate if you are on per diem. And, I believe the maximum amount of P.D. you can get is 10 cpm, so if they offered you 24 cpm, but on PD you are making 22 cpm (12+10 cpm PD) then that's pretty close. Odds are you misunderstood what they were telling you, but you should till call them and see if you can get it set straight.

Other than that, sounds like it was all figured out right; I used to be paid on PD, and I remember it looked weird too, not nearly enuff taxes being withheld, but it works out in the end. Just remember that you CANNOT claim any additional PD on your taxes at the end of the year. What does that mean? if means contact your tax professional, or wait and a driver that can explain it better than yours truly will do so.

 

The small percentage the company kept, is authorized by the IRS. It's sort of like a collection/filing fee the company gets to keep.

Per Diem, is the biggest rip off (IMO) going now days.

You lower your future Social Security benefits, and your unemployment benefits by doing this.

I do understand how you got your original figures though. In the "good old" days, a per diem was an added "bonus" to your pay. X amount of money above what they paid you. This is no longer the case