per diem so confusing

Ive searched, but im tired of looking at my phone. Screen is to small. So quick easy question..29 cent per diem pay or .34 cent.straight pay. What way will make my TAKE HOME pay more ? Im thinking straight pay will leave me with more money

 

Don't play that per diem game with your company. Take the .34 and have all your wages taxed.

Here is why. At the end of the year you will get to deduct a $59 a day per deim from your taxes. So you will get all of your tax money back. Second, if you get hurt and file workmans comp they will pay you only for what you make above the per deim. Per deim pay is not counted if you get hurt, laid off, or get fired and have to go on unemployment. It also lowers what you pay in to social security so when you get ready to retire your SS check won't be enough to live on anything but Tender Vittles.

 

Correct . Also carriers can be fined heavily if they overpay per diem so they underpay . Claim it at the end of the year and you get every bit due .

 

... and then some when comparing per-diem plan vs. no per-diem and taking your standard driver daily meal allowance which is actually easy to do. And as a company driver, just make sure to get weekly or monthly recaps from your carrier if you're on e-logs, and save your paid shower, hotel, and other driver incidental cost receipts as these can also be used as you itemize to reduce your taxable income. Don't give the carrier the satisfaction (less payroll liability and "administrative fees") by being duped into their per-diem plan. And if they don't give you a choice? I'd walk.

 

If you need more take home pay right now fill out your W4 with several dependants. That way you get less withholding tax taken out. You will still be ok at the end of the year because of your per diem deductions.

 

Another good point . Minor expenses like showers , pens , boots , etc may not total enough to be make itemizing worthwhile . If per diem is more than the standard deduction you can then itemize the smaller expenses as well .

 

Im taking the straight pay. Chose to go with millis transfer. They try to persuade per diem pay by offering vacation and bonuses, but ill just take my 34 cent/mile and aim for minimum 2500 miles a week

 

Actually, you can deduct 80% of that $59, or $47.20.

http://www.ooida.com/Education&BusinessTools/Resources/Per_diem_rate.shtml

 

There is a bit of confusion as to what exactly "per diem pay" is. In any other industry that I am aware of, per diem is extra pay a company pays employees who have to travel, to compensate them for the extra expense of traveling for company business. And in those cases it has nothing to do with taxes except it raises your taxable income. The hooey these carriers call "per diem" pay is just a tax dodge for the carrier, and will screw a driver over at tax time. I did that with one carrier years ago. Guess what year was the only year in 20 years driving I had to pay in in April. The year I got "per diem" pay. I left that company in May after feeling shafted in April.

 

Where'd you come up with all that ? If a company gives you expense money and you spend that amount or more on expenses it does not raise your taxable income . IRS has a set deduction per day .