I may have made a mistake

It's simple if you understand deductions and so on. Per Diem is really no different that "pre-tax" on benefits. It reduces the tax liability that the company has to pay - as well as your tax liability. You dont get to take the 58.00 Per day (year end deduction) as you would on non-per diem. But the tax benefits outweigh that.

It's a win for the company for sure. Not going to question that. So much so they offer the paid holiday's and extra vacation time for you to take it. But IT'S NOT FORCED ON YOU.

I have done the math many ways and it really doesnt work out to be too much different in "take home" pay. Yes it will look like you are making more in "gross" pay - but not "net" pay and net pay is what matters. Add in the extra holidays and vacation and it pays for it self quick.

 

What's the consensus on HHG vs practical miles?

 

So are you saying you were on per-diem? I am not familiar with how per-diem works but it sounds like you get a bigger pay check during the year but show a lower annual income on your taxes. So if you wanted to go buy a house or something that may hurt you showing a lower income as far as the loan amount you could qualify for. Am I understanding this correctly?

Thanks.

 

Hey Baritone,

Are you saying you will net more on per-diem or just doing the regular pay check thing? I don't care about the gross, I only care about how much is actually going into my checking account every week.

Thanks.

 

I would like to know the answer to this as well. What is HHG and what are practical miles?

Help!

 

There is a thread on this by cpape in the last month or so.


http://www.thetruckersreport.com/tr...g-jobs/118288-whats-wrong-with-hhg-miles.html

 

Then you want per diem

 

This is a very "debated" subject. It works for some and not for others. Everyone's situations are different. One thing I do know - if you're not an accountant/tax professional - your "opinions" are just that!

I talked to my tax person before I made the choice and per diem works for me. Not to mention the extra's that come with it.

But some dont like it and the reg pay works for them just the same!

 

HHG are like zipcode to zipcode, example your on the east side of columbus,oh and your going west, you will not get the miles traveled thru the town, now for the per-diem, its great if your more than 10 years from retirement, (BUT) if you plan on retirering at the age of 62 you better take NON PER-DIEM because the social socurity is base on how much money you make during your last 10 years before retirement, so what doe's this mean, your W-2 should read the highest INCOME you can get so you get higher social security check per month, i rather have that W-2 read 40 or 50 grand per year than 25 grand per year,it means alot, do you want 800 dollars per month or 1600 per month when you retirer

 

Social Security? I am going to get Social Security?