Getting per diem above my normal pay

In reality you are asking for a raise.
Most companies who pay per diem reduce the regular pay by that amount.
It can be of benefit to both parties, but it depends entirely on your personal situation.
If you feel you deserve more pay you could present it to your employer that way.

 

Per diem doesn't benefit you. And can really hurt you. If you decide on a loan for a car or a house. Or even a credit card.

It's no longer allowed for tax filings. I don't really see it being a benefit to the driver at all. But that's just my thinking. Others will have other ideas.

If you want more money. You're better off asking for a raise. But if the company is worth anything. They will raise you on their own terms. I've never asked for a raise. But I've gotten them. But when the economy crashes. And push comes to shove. Guess who works more. It's certainly not the higher paid drivers.

And if you make more. And decide to work elsewhere. You start off at the bottom again.

Been there. Done that. Seen it. In all scenarios going on almost 20 years.

 

I have to disagree with you on 2 counts. First, having per diem deducted from taxable pay and put back in as non-taxable income is not going to affect borrowing. Loan officers know and understand it, and it won't effectively lower one's qualifying income.
Second, it is deducted from taxable income and returned as non-taxable reimbursement. The new tax code eliminated non-reimbursed employee expenses, so you can't deduct it from your income, but your employer can. They get the tax benefit of reducing their share of FICA taxes, so it is a benefit to them, and the driver doesn't pay income tax on it.

A hypothetical case, and the numbers are only here for constants; $50,000 taxable income $50 per diem for 200 days and tax rate of 10%; Old rule $50,000-$10,000=$40,000 agi, $4,000 income tax. New rule $50,000-$0=$50,000. Employer pays per diem $40,000+$10,000=$50,000 gross income, tax is $4,000.

Now obviously the tax rate will depend on the case, and the per diem rate is not $50 per day, but ALWAYS the income tax will be reduced by taking the employer paid per diem.

 

Getting part of your pay tax free from all taxes? I'll take per diem every time.

 

Makes sense. But the banks look at the bottom line.
My per diem never showed up on my w2's. It wasn't listed. So I could still claim it. And still had a decent income number. But, I wasn't looking for a house.
House loans like to see the year end numbers. A guy with $50g claimed on his taxes would have a better chance then a guy with $40g. Right?

If one could make it work to their advantage. Fine. But if he needs the income for a loan.

Course. I"m just rambling as I have no idea how it would work these days. I came back local before the gooberment changed the tax laws.

 

I applied for a mortgage and the loan officer stated, writing taxes off at the end of the year affects you whether its company per diem or you write them off yourself at the end of the year.

 

I tried my hand at being a mortgage originator at a bank. If it is on your pay stubb, there is someone who will make it work without resorting to stated income. If the guy you're working with won't, find somebody who will.

 

I believe there is confusion here concerning per diem. There’s two types. First, is a mileage based per diem for truckers. Say you get paid 50 CPM, it might be split as 35 CPM taxed and 15 CPM non taxed. Your company may or may not charge a fee or reduced CPM to administer the program. At the end of the year your W-2 will only show the taxable income with no reference to your per diem. Next is traditional per diem. This is a fixed amount that changes annually. When you go out from home on day one you would get half, the next day and each thereafter you get full per diem. On the day you go home you would get half per diem. Last year the per diem rate is $65 a day. For taxes you have to log the days and half days for the year to claim. However, when Trumps tax act was enacted, we no longer can use traditional per diem and can only be administered by a company and only at 80% of full per diem. And you can only have one or the other and not both.

 

Original Article
This tax day, some truck drivers are unhappy with Trump