JBS Carriers Greeley Colorado

While I agree with you about the Social Security System, etc., I just don't like the idea of a company telling me how to manage my finances/taxes.

Even a modicum of knowledge about how corporations work shows that corporations do what's BEST FOR THEM most of the time. That doesn't mean that it's also BEST FOR YOU. In fact, most of the time it's not.

In the case of per diem, while there aren't really any negatives for the company, there are far more negatives to the driver than there are positives. Not a great trade off in my opinion for an extra $50 a week, or whatever it works out to be, regardless of whether Social Security will be around or not.

It's bad enough that we are forced by our government to pay taxes under our current overcomplicated and often corrupt tax system.

Having been involved in Americans for Fair Taxation for over a decade, and having served as the Texas State Director for that organization years ago, I'm more convinced than ever that we need The Fair Tax now!

Oh, and BTW, The Fair Tax would also fully fund Social Security and Medicare and end the current ponzi scheme of financing for those programs.

I won't vote for a candidate for a national office who does not support The Fair Tax.

So, in 2012 it looks like Gov Gary Johnson will be getting my vote!

 

Fair tax, flat tax; HOW BOUT NO TAX!

The way any of the taxes you pay out of what you EARN is completely UNCONSTITUTIONAL due to the fact that your direct contributions are allocated to others and are NOT directly allocated back to the individual paying their taxes in the form of services given to you by the federal government.

As a tax professianado as you seem to be, tell me this; with the current tax code, how does per diem NOT benefit the recipient?

Someone makes $70,000/yr without per diem and has $24,000 in write offs as opposed to someone who made $70,000/yr, was only taxed on $57,000 and has the same $24,000 in write offs.

The guy who had per diem who only had to claim the $57,000 will get a substantially greater tax return as well as had more money in his pocket the entire year.

I understand all about the fair tax and think it would be far superior and much more beneficial to the average citizens then the current code, but I must still defend my position of a 0% income tax as its the only FAIR TAX percentage which would truly be FAIR!

 

I wanted to say hi to all and let anyone who's interested know that I'm back out here with you guys!

Baby's home with mom and doing well, and I'm happy to be back out here making money. I tried to read most of the 50 or so pages on this post that I had missed but it got too tedious so I may have missed a few things. I am asking forgiveness now from all of you if I post something that's already been discussed or if I jump into a conversation I know nothing about lol!

Hope everyone's having a great day and stay positive.

Not a cheerleader, but I think that many need to look at themselves and what it is that they are doing and what they could do to improve their overall experience here.

I read many of the 50 pages and have to say that after 12 yrs 10 companies, and a whole lot of experience which shouldn't have had to be lived, J.B.S. is a very decent company to work for.

They have treated me very fairly and have shown me respect unparalleled in this industry. If you think its terrible here and you have less then 5 years in the TRUCKING INDUSTRY, then you have a lot to learn about the new career you have chosen.

There are companies that are better, but there are far more companies that are far worst then this one. Spread your wings if you so choose, but take the advice of a Professional SUPERTRUCKER and the advice of some more experienced drivers before jumping ship at any company for greener pastures. Most of the time its not greener grass, its the liquid bull**** they've sprayed over the wilted weeds

 

NO TAX is not realistic. There has to be some sort of funding for the federal government in order for it to operate.

HOWEVER, that does not mean that we have to be taxed based on INCOME.

In fact, our country operated until 1913 without a tax on INCOME.

I'm not going to argue the Constitutionality of any taxation scheme. I'm not a "tax protester", I'm a "tax reformist" as I realize the former has little chance of success.

Perhaps from a tax only standpoint per diem is a good deal for the employee. But it's ALWAYS a good deal for the company.

However, there's more to one's financial situation than just taxes.

Rather than try to re-articulate it in my own words, here's an excerpt from another website that does a really good job at explaining per diem and who benefits from it.

"A per diem pay plan reclassifies a portion of your paycheck as "expense reimbursement" rather than actual income. Therefore, your taxable income is lower. In return, this will affect many other benefits that are calculated off of taxable income such as worker's compensation, disability claims, unemployment benefits and the most important one to some...social security benefits.

Also, an important aspect to remember, is that by showing a lower taxable income, this could very well reduce your ability to secure loans at a decent rate, and to be able to obtain credit. This is because, of course, that banks and lending institutions look at your total income when basing their decision on extending loans and credit. Another important factor that could be disrupted by using the per diem, is any profit sharing plan your company may offer. Profit sharing plans are mostly based on taxable income, and any income tax savings you may receive from utilizing the per diem plan, would reduce your profit sharing contributions.

Also keep in mind, that the per diem portion the driver receives is tax free when the trucking company pays it. At the end of the year, if the driver has been over paid what the IRS allows, then the driver...not the company...will have to pay the difference in taxes. We will all have to pay taxes anyway. Why give up hundreds of dollars it will cost us over our lifetime of earnings, in order to "bring home" $35 to $75 more per week? Drivers are basically trading their future retirement earnings, while the trucking company is increasing their daily earnings, by reducing their tax liabilities.

The trucking companies are really the ones benefiting from the pay per diem plan. The company will pay less in unemployment tax, medicare, driver pay and social security. The per diem pay plan can drastically reduce the drivers' future social security benefits as well as other retirement plans such as the 401K.

Always check with your accountant who specializes in transportation if you are still uncertain about the per diem pay plan. Trucking companies are in business to make money. Any business is in business to make money, that is understandable. Just remember, the plan the trucking company is pushing for the driver to utilize, is often the plan the driver wants to stay away from the most. "

Actually i agree with you because The Fair Tax IS NOT AN INCOME TAX!

The Fair Tax is a CONSUMPTION TAX!

That's the big problem with the so-called "Flat Tax"; it's STILL AN INCOME TAX!

The Fair Tax would make this whole conversation moot as we would be taxed only on what we CONSUME, not what we PRODUCE or SAVE!

ANY tax on PRODUCTION is COUNTER-PRODUCTIVE, PERIOD!

 

Griphon,
I agree with most of what you said,
However if I was not Married to the Woman who has done my Taxes for the last 18 years, (how I met her) which most of the time I was 1099 until JBS. I would say that her Virginia Bar Card is the best advice I can get.
I do know that when someone calls any Gov't agency they might not get the right answer but it is a start to looking for the right answer.
I just suffered through an IRS Audit, Yep while I have been home I have spent over 30 hours with IRS agents, and several of the people who work in the Firm my Wife works at in Williamsburg.
And of all the crap we went over the only thing that was scrutinized over the 10 year period of the audit outline, had nothing to do with my Income source, but my Schedule C for 7 years there was some supporting Documentation the IRS Lost in transit... Thank God For good records.... After all was said and done the "over Bearing" IRS folks have left I did not walk away clean at all had to do some compliance crap and I am filing a 433f, along with the wonderful 656 form OIC. I of all people despise the IRS and think frankly it is a complete waste of my Tax Paying Dollars. I am for NO tax at all considering a multitude of things, and as you have said the Tax Code is twisted so tight that it takes a team of Lawyers to try to make sense of it, and even with Lawyers not everything is correct. As I have found out the hard way....
The last 2 years of my Tax Records did not even come under scrutiny, everything else well my arse feels raw.
I would suggest anyone not familiar with Per Diem Pay to call a Reputable Tax Firm, one that understands the IRS Laws and The Transportation industry, as truck drivers have several HUGE benefits within the IRS Code....

 

Gryphon,
My Per Diem Pay is much Higher than 45-60 a week,
And you are Right The Workers comp pay is lower, Unemployment rate is lower, But take this number to chew on for a second...

In the 6 months since I came back My Gross was 53k, My Net is 41K if you average that out and multiply by 12 months that is 106k, and 86k Not bad, and considering both Workers Comp, and Unemployment have Cap on them I think I am ok with the per diem....

 

In that time frame since May 17th I have run 94k paid miles, Not bad for having taken off 14 days at the end of the year, 6 days in November, and an additional 10 days prior to that......
And Again I will say this I sit like others and JBS is not the ultimate company out there, it is what it is, and I do my ###### best to make as much money as I can.....

 

Social Security,,,, please do not tell me you think it is going to be there....

401k Is not affected at all by Per Diem, if anything it offers you an opportunity to put in UNTAXED wages into a 401k if you are willing to gamble your money.....

Best part of Per Diem, I can take my Money to a Casino and piss it away instead of allowing someone else in Washington to do so.

If anyone believes that Social Security is going to be around in 10 years, then Pigs will fly, And unicorns will gallop the earth, and the Mayan Calendar is right except one thing the Mayan's ran out of room to go beyond 2012, they even wrote about it ..

 

I'm glad that per diem works for you. And honestly, it might work for me as well, but I want to be the one to make that decision.

My main POINT is that I don't want to be FORCED to take it. I want to be able to look at my own personal entire financial situation (cash flow, retirement, taxes, etc.) and DECIDE FOR MYSELF how I want to manage my money, PERIOD.

And at the end of the day, there's a reason why companies push so hard for their drivers to take it.

I had one tell me that they don't force per diem on their drivers because they manage their own company finances well enough that they don't have to rely on the savings from per diem, etc.

However, she also said that during orientation she was going to stand up in front of me and try to encourage me to take per diem pay. But at the end of the day they don't make their drivers take it because they believe that their drivers have earned their money and should be able to manage it as they see fit.

While JBS is still on my list, they've fallen down that list as I've also gotten "hiring approvals" from companies like Con-Way (pays student drivers A LOT better), May Trucking (comparable pay and no forced per diem), and others (7 total with JBS being the only one with forced per diem), etc.

Happy New Year!

 

@srvmcmxc,

I'm surprised that such a staunch Ron Paul supporter would be so quick to defend a company telling him how to spend his money! I guess it's just wrong with the government does it huh?!

Sorry, I couldn't resist getting a little jab in at you!

BTW, I love Ron Paul, he's one of only a handful of true STATESMEN in a body made up of mostly POLITICIANS! I spent 8 years living just 100 yards or so from his Congressional District line. I always wished he was my congressman instead of the useless Lloyd Doggett!

Happy New Year!