Per Diem: So what is the scam?

Let me see if I can nutshell it for you. I'll start by saying it's a bad thing for the driver. Here's why...

As a driver, you get a standard deduction of $59 a day for meals on the road when you sleep away from home. (you actually get 80% of that, so use $47 a day when you figure it at the end of the year. I don't know why they don't just say $47, but it's the IRS).

So, companies pay you less than what you're earning (when they sell this rip off to you, they say you're paying less taxes, which is technically true because you're making less money). They use YOUR money (per diem $47 a day) to make up the difference (usually with a .02 cpm charge because effing you once isn't enough).

So, at tax time, you have made less money AND you don't get your per diem write off. If you're OTR and sleep away from home 200 days in a year that's $47 x 200 =$9400. There is minutiae that can change these numbers some that you need an accountant to figure out IF you decide to let the company eff you, but I'm not going into that.

What it comes down to is this...

No company per diem program means you make all the money you've earned AND you get your full write off ($47 a day on the road)

Company per diem program means you make less than what you've earned and your write off is gone.

Hope this helps. It's a bad deal. The ONLY way it's a 'good' deal is if you want to show you're making less money than you are. Like if you're paying child support or alimony and want to give your ex or children less money. Classless companies sell that too.

 

per diem is paid only when the wheels are turning..so if your on your reset or broke down..no per diem..