Millis chat room

Per diem pay appears to give you a bigger take home pay "after taxes" because millis does not tax 10 cpm on per diem program. With this being said regardless of your choice EVERY trucker that is away from his "tax home" overnight gets a tax break of $59 per day( current year amount) and 3/4 of this credit for the day you leave and the day you get home. Heres an example: Keeping it simple for math.

I leave today and stay out for 100days and come home on day 102 for the year.

I have 2 days, when I left and returned, for the year that are a 3/4 day credit. 59x2x.75= $88.50

now i take the 100 days as full days out. $59x100= $5,900

add the two=$5988.5 and when applied on the tax form your actual number is mutiplied by 80%, so $5,989x.80= $4,791. this is the amount my taxable income is reduced.

Now if I was on Straight Pay in this scenario I would take the full deduction. If on Per diem I would subtract the amount of perdiem (miles x.10cpm) that the company paid from the $4791 and take the balance.
I'll give 2 examples of this, one under paid per diem and one over:

say I ran 50,000 paid miles during my time out. I would been paid 50,000 times .10cpm per diem from the company. that's $5,000. $4791-$5000= ($209) over payment of per diem. I need to add to my taxable income.

If I ran 45,000 mi and was paid $4,500 I need to deduct $291 from my taxable income to get the balance of the per diem that I'm entitled to as a Transportation Worker.

I choose Straight Pay because Millis adds .02cpm to the bottom line and my per diem is equal at the end of the year. if I want some of it in my paycheck I just adjust my w-4 withholding. and take the 6.89% raise( .02/.29). Who bocks at a 7% raise?

the reason for the 2cpm difference is the company can only tak 50% of per diem paid as a write off so 5cpm of the 10cpm. its about 2cpm diff to their bottom line.

Anyway I'm not an CPA but I hope this helps give you the general idea. sorry so long winded.

With this I would add one more thing to my previous post under the advice list. We spend a lot of time out on the road. Spend some continually educating yourself about your profession from reading and re reading the regulation book, as it applys to your work , to listening to the Road Dog channel sirius/xm 106 on the radio as they discuss these topics. Knowledge is power and it certainly gives you a better chance of success from your pay to dealing with a DOT inspection.

 

Thanks Guys, I appreciate it.

 

Yes, my friend, I thought the same thing, however i verified it with Millis and other sources and thats why I capatilized FACT. My previous statement stands and is verifiable with Millis both pm and hhg are zipcodes. I can tell you though it was not explained to me that way when I was originally introduced to the pay options i was given the impression it was address to address.

 

your more than welcome. If we can all help each other we all rise together. I had to ask a lot of questions to get the answers I am providing. Always keep asking and the disect the information and prove it true or false and you'll continue to improve your quality of life. I know i'll still be asking questions if I'm doing this another 25 yrs.