Per diem pay

Sound like you need a better bank, or at least, a smarter banker.

 

ehhhh, I didnt use a bank lol. Banks refused to work with me because of the way I was paid.

Who do you work for again?

 

Magnum out of Fargo

 

You will be paid 35 cpm of which 10 cpm will be per diem. Only 25 cpm will be taxed. Here's an example based on 1000 mile week.

$350 mileage pay - $100 per diem = $250 taxable income

After taxes are subtracted the $100 per diem is added back in.

Per diem should be handled by the driver not the company as it lowers your gross pay therefore affecting your income as it relates to ssi, disability and reportable income for loans.

As has been stated above, the forced per diem is a scam as it provides a significant advantage to the company by way of lowering their matching fica taxes while charging a fee to the driver with little benefit to the driver.

2017 per diem for transportation industry is $63/day and 75% of $63/day for days you leave or return.

If you are out 5 days a week your weekly per diem deduction would be as follows:

3x63 + .75(2x63) = $283.50 or about $14,174/year based on 50 week year.

IMO find a company that doesn't force per diem on their drivers.

 

Hmm... I'm not being paid Per Diem, but for my convenience, my company is keeping up a Per Diem report of when and where I've been working.

Plus, on my W-2 I put 0 exemptions.

So... should this be a setup for a big tax return?

 

Your goal on taxes should be no return and nothing owed. A return is nothing more than an interest free loan to the government. I adjust my exemtions based on my deductions I will be taking for that tax year. I would rather have less taxes taken out of my check throughout the year instead of having a large return. Each exemption accounts for $3900 in income deductions. If the government spent our tax dollars more effectively and efficiently, I may feel different.

 

Yes, this ^ is probably [but not necessarily] the case. Many carriers run this "questionable advertising scam" by maybe omitting or adding improper key characters in the ad, to get drivers in the door for 45 cpm when in reality it's only 35 cpm. Then at orientation when they raise fury about the misleading pay statements, then they launch into their "per diem is the answer to all your tax problems and the best thing since sliced bread" spiel