Forced Per Diem... Theft?

"Therefore, in order for the company to pay a per diem of $.14 a mile, it will not be able to deduct $.025 per mile. This reduction per mile helps offset this cost."

Without reading where this originated and in what context it is represented, it is hard to tell what they are stating. On they surface, it seems to imply that you can offset the 20% tax implications by lower the driver wage by $0.025 per mile (20%), but that doesn't seem honest...

 

so how and why is it legal; presuming it is; for the companies to force per diem? I called the IRS; they sd that they (meaning legal dept.) didnt know how anyone can give the per diem; which is a tax break, to anyone before the end of the tax year. They sd they couldn't do anything about it till after i filed. If they were doing something illegal THEN they would. I also t/t the labor board and they didnt have a clue what i was talking about. sd that it didn't seem right. that i would have to t/t the local state board. i called them and they sd i have to call the IRS. and suggested i call the federal motor carrier guys.
AS posted by others, yes you are getting hit twice financially. as well as a third time by lesser SS, and home loans.
My company sd they would provide a piece of paper w/ company logo; saying how much i made. i asked if they would put 5 billion dollars on there. they laughed. i sd i am laughing to. but not for the same reason. i asked them when was the last time they took a note from work saying how much they made and got a loan. they quit laughing. and all they could say was but you will make more money now.
i sd that may be true, but the company told you to say that. and you are screwing us in the long run and lining your pockets.
so in closing; i have noticed more and more companies doing it. but eaach seems to do it a little differently w/ the same results. makes me wonder. is there a law or rule or ????? for them to do this? Thanks in advance.

 

I guess no one has put it to a legal test yet! Maybe you could be the first?

Mark

 

I guess you haven't done your homework or you would have found that the IRS approved a per diem plan many years ago.

I am amazed that you complain about the micro economics of per diem rather than walking off the job enmass protesting the slave wages you are paid.

 

per Diem is written into the IRS codes, as well as having the rate set. the company is given the choice of using it or not. The IRS tax codes say nothing about giving the employee a choice.

Why would you want to pay taxes on money that you DO NOT have to pay taxes on, that is the benefit to the employee. That puts more money into your pocket. Now the country as a whole is in so much financial trouble due to the spend, borrow beyond ones means and spend, that I honestly doubt we will survive without some major changes, and a depression.

 

And once again us older guys have to tell you that you are still getting screwed in the LONG run! When it comes time for you to get your Social Security you will not get what you actually should have because what they report to SS is what goes on the return. Go ahead and take that little extra now but when you can't work. Do NOT cry that you got screwed! You were warned!

Then when you go to get that home loan and you give the loan company your W2 and tax forms they'll ask you why you want a home loan when you don't meet the minimum pay requirements because you had to take that little extras in your pay today!

Same thing with workers comp. Look at what you paid in taxes. See the amount? THAT is what you get if hurt on the job! NOTHING MORE!

You will come out better at the end of the year when you file your taxes. Now that bottom feeder that is doing this scam on your arse might not have taken out as much as they should have and you just might be able to file on the owed amount but still you MUST look to the future not the end of the week! Then those who actually CHARGE you for the privilege to have per diem taken from that check! Oh how nice of them!
Why do you people keep these companies in business? Why not quit and tell them why! I've been looking for work since August and one of those companies called me and when we got to the part in my interviewing them they told me I HAD to do the per diem plan I told them I would not let someone screw me out of pay like that and the only thing I HAD to do was hang up the phone and yeppers I hung up! I need work not to get screwed!

 

Per Diem is not a career choice. Your Social Security is based on the highest earning 7 years. Per Diem is OK for a short period of time but a horrible choice to select for long term. NO COMPANY SHOULD FORCE PERDIEM ON YOU. If a company forces per diem, take the work if you need it but, walk away at your earliest opportunity. Some companies state that they have designed their PerDiem program to be revenue nuetral. The simple math probably shows this to be true. However they make out when it comes time to pay workers comp or unemployment.

I would say thats OK, the company should benefit too. Afterall, I believe the company should make a profit too. But then I consider the slave wages that are paid and reconsider. Paying minimum wage, or less, to an experienced long term worker is just wrong.

Cliffnotes version: Take the Per Diem to put groceries on the table for a short period... get away from it as soon as is practical.

 

I guess I am fortunate that FFE offers you the choice of when you take the PerDiem. I am electing to take mine at tax time, and using the lump sum to pay off some things.

 

What slave wage? When I was OTR with a training company I made 47K 1st year, 55K second year, and 61K third year.

You the driver choose to work for a company that will not pay you more.

Mark

 

i will be contacting an attorney this week. just to see what the legal angle is; if there is one. in response to a post. i am currently looking for another job; will not work for one w/ the PD. Have a job now and need it; albeit gettin screwed along the way. this company doesn't tell you about it till just b4 you jump in the truck. a lessoned learned. thanks for letting me know about FFE. will check them out. have a good safe day people.