Getting per diem above my normal pay

This is a good point. Not every ones tax situation is the same. Even the company per diem plans are different. Mine is a set rate per CPM. With that in mind, even with dependents, you should be making more than enough to find the benefits of taking the per diem with a PROPER company plan. Not all companies are the same.

 

At the end of the year when a driver has his taxes done he can claim the per diem for every day he spent the night on the road. Alot of companies charge like .2 cents a mile administrative fee for the "privilege" of them paying you part of your pay in per diem. So why let them when you can have your tax man do it for you. By the way, Local drivers cant claim it cause they sleep in their own bed.

 

You can not claim it that way anymore.
It is no longer a deduction when filing taxes.

 

Well that sucks, I didnt know that.

 

This is the point I was trying to make earlier.
I don't think per diem is even tax exempt as a company 'benefit', anymore.

 

That is correct, but then they don't have to pay matching fica for your per diem. By the way, my company doesn't charge us anything to take the per diem. Which is how it should be.

 

The company first deducts it from taxable wages, then puts it back in as a reimbursement.
Minus the small fee.

 

No, you will not be taxed that amount.

I'm sorry to sound like a broken record. Per diem was not eliminated per se, unreimbursed employee business expenses were. Most employees' business expense was nothing compared to per diem for us, but still, tax wise it is no different than a uniform allowance or anything like that. You buy a pair of boots for $100 and your employer reimburses you, you're not taxed on that $100. Per diem is the same, it is a non-taxable reimbursement.

 

Yes it is. It is no different than your company having a uniform reimbursement plan. You buy boots and give them the receipt. They pay you back. No tax is withheld and you owe no tax on that money. Per diem is a set "receipt free" daily expense. You're paying that money to live out on the road. Your company pays you back that money, and they get the tax break. It is not income, it is a reimbursement for money you spent out on the road, except you don't need to turn in a receipt.