Friend got 16,000 back in perdiem

Halliburton, BJ, Weatherford or Schlumberger?

 

It's not hard to drive over 130K and be home, your company just needs to have freight for you to move. I drove 131,664 miles with 85 days off in 2006, average miles per week are 2532. My best full week out I ran 3789, my worst was 2041. I run 3 weeks out, with 5 days off.

Mark

 

What does he mean by (the term) "PER-DIEM"? Per-Diem (latin for PER DAY) is in my experience another way for Companies to SCREW the drivers. This is how it works: Someone else threw in the figure of $130K, so we will go with that figure. They subtract your "per-diem" from your PRE-TAX income, (lets use his $16k figure) You are then TAXED on the remaining income.
$130k minus $16k equals $114k is what the employer CLAIMS your work is worth in all matters like Workers Comp, Unemployment, Social Security, ect. Even though you were PAID $130k, the employer CLAIMS the $16k was a gift or bonus and not real income, if you file Workers comp, unemployment or Social Security, you are paid according to your PRE TAX income only, or $114k.
Now HERE is where the driver REALLY gets screwed: TAXES! (Federal/State/local) You have to keep every reciept.

Meals when subject to "hours of service" limits. You can deduct 70% (2005) of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's "hours of service" limits. You apply this 65% limit before you apply the 2%-of-adjusted-gross-income limit. In 2003 you can claim 65%
In 2004 this will increase to 70%
In 2006 this will increase to 75%
In 2008 this will increase to 80 %

Example:
Driver was away from home 200 days from Jan 1, 2005 to Sep 30, 2005 and 75 days from Oct 1, 2005 to Dec 31, 2005. All days were in the United States. Using this information you can do the math.
200 X $41 = $8200 (from Jan 1, 2005 thru Sep 30, 2005)
75 X $52 = $3900 (from Oct 1, 2005 thru Dec 31, 2005)
Total= $12,100 X 75% = $9,075 this is what you would be allowed to claim. **This is before you apply the 2% -of-adjusted-gross-income limit.


SO, if you can claim $9,075, and your perdiem was $16k, you will have to pay the taxes on the remaining $6,925.
The employer pays LOWER taxes: LOWER Unemployment taxes, LOWER Social Security taxes, LOWER OVER ALL COSTS based on your PRE TAX income and YOU end up paying MORE Taxes at the end of the year.