Getting a headache

xdbguard said: ↑

I can tell you, if you elect to receive per diem from the company on your weekly paychecks, your taxable income is reduced. If you were to apply for a loan, credit card, etc, which required proof of taxable income before extending you a line of credit, you would show that you made less than you actually did.

Social security and all that other jazz is based on taxable income. If you make less (accepting per diem) you contribute less, which could decrease your benefits later in life.

If you elect NOT to receive per diem via your company, you will pay taxes on your wages at the end of the year.(but we pay them weekly on our checks, right? ) Example you make 40k gross. You will pay a % of 40K in taxes. HOWEVER- you can deduct 52$ a day for every day you are away from your tax home which requires you to take a dot mandated break. This decreases your tax liablity at the end of the year. You also claim things like showers, tools, hotels, rental cars, etc.

Simply put, take your money home NOW weekly, or get SOME of your overpayment in taxes at the end of the year. 7.5% of what you overpay in taxes is given to social security. Social security does not issue refunds. You lose 7.5% of your money.

None of that may have made any sense.. but do pay attention to the lasts paragraph.

I personally do not accept company paid per diem.
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Interesting thanks................J

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jash369 Medium Load Member

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