pay packages

You will wind up with the same pay almost every time. It is basically a wash either way. On HHG, at times you will make a little more but not always as both ways are both calculated mileage wise pretty much the same way.

 

I don't drive for Millis but I did enough research on the topic. Most guys here will tell you it depends on your personal situation as to which way you go on non-per diem or per diem.

Me personally, I would go HHG and non per diem. HHG because there is always that every now and then chance you will make a few extra dollars on your check even if it is only 10 bucks.

That per diem pay really only benefits the company. Someone here can elaborate more on how it works but basically you only get taxed on .25 cents and the other .09 or .10 is tax free so you get a "bigger check" but show lower annual income at end of year. So if you are trying to buy a house this may hurt you when you are asked to produce your W2's.

Non-per diem is basically getting a normal check with all your deductions taken out and showing a higher annual income on your W2. But I think and don't quote me on this, if you save all your receipts for everything you spent to live while out on the road, you can write this stuff off as living expenses. So you will owe less tax or get more back at the end of the year.

Like I said, the per diem pay benefits the company more than you. You will have to decide which is best for you. I personally would not go that way.

I believe Bear is on per diem. He can answer any questions you have about it. If I am wrong about any information I just gave you I apologize but most if not all should be correct. If not, most of the Millis drivers on here should be able to help.

 

Per Diem makes it look like you make less. So for instance if you pay child support your payment would be smaller(advantage) If you have a child in college your EFC would be smaller(advantage). If you want to buy a house, your earnings would look smaller(disadvantage).Social Security buildup, per diem is a disadvantage. Per Diem you get biger checks weekly but on paper looks like you make less. Non per diem smaller checks but around 8000 write off come tax time.
I personally went Per diem/ Practical. It suits my needs and I am happy with my decision. I feel I have built my social security in my 30 plus years of employment and I have a child in college and no major loans needed in my life.
Just my 2 cents
If any of my info is in err feel free to correct as I am a newb.

 

I'm with Mojo for a different reason.....I needed to withdraw some of my 401k and the company I deal with doesn't withhold taxes if you don't want them to...so I will have to show the proceeds as income at the end of the year.....so I take the perdiem package and HHG miles (the reason I take HHG is because it pays more per mile and the jury is still out on whether or not practical vs. HHG is a wash at the end of the year... I'm convinced it is).
I already own my own house, I will never finance another car as long as I live (my 2006 F150 is paid for), I wouldn't pay less in child support if I could because I know the money goes to my daughter (I am one of the fortunate), and throughout the year, I don't have to keep up with every reciept thats handed to me (and at the end of the year try to make sense of it all).

To the person who wrote that it only helps the company, 2 things: thing one is that there is no sin in helping the company you're working for and taught you a trade. And thing two is that, depending on your circumstance, the perdiem pay rate can be benificial to the individual as well....... it all depends on your circumstance.

Crunch the numbers using 2000, 2500, and 3,000 miles as examples (I think you might find that at 3,000 miles you actually do better)....see what works for you.

Peace

 

Here's how Per Diem works. The IRS will allow company employees who itemize to deduct a set amount for Meals, Lodging and Incidentals for each day that they are required by their company to travel, without having to provide receipts. As a truck driver, you can deduct only a percentage of this amount presumably because you don't really require the lodging (sleeper). If you don't or can't itemize, then take advantage of the company per diem option if offered - but only if the company does not charge you for the 'privilege'. If you plan to itemize, then skip the per diem option and claim it yourself.

It is true that your income will appear to be less than it is for social security benefit, 401(k) contributions and child support calculation purposes, but when you state income when applying for loans or other financing, then per diem IS accepted as income. I know, because I have had per diem accepted as income when I purchased my new car 2 years ago. Just show your pay stubs when applying for loans and you're fine. Consult with your tax professional and financial planner to see which would be best for your particular situation.

 

Several drivers I have talked with in the last 3 weeks, Who are on perdiem are talking about switching back to non perdiem because of under paying your year end taxes and owing $2-3 thousand at tax time.
I took the straight pay/hhg=35cpm + .01 for not taking the health ins.
I just cannot see losing .05cpm and taking perdiem(.30cpm hhg perdiem)
I polled as many drivers as I could and it was 50/50 on the pay package they took.

 

It sounds like the company did not report the income properly. It's possible that they've made an error. Per diem is not taxable income, but they may have reported it as such.