per diem

swift has a per diem, But I know nothing about it. Hang around someone knows.

 

Yes, Swift does off Per diem. It's a joke. They take away 10 cents per mile of your pay and pay you 8 cents per mile as a reimbersement (no taxes taken out). Whether you sign up for the per diem program or not, you can still claim per diem on your taxes and get the deduction that they are basically giving you in advance, and charging you for it. On top of that, because it is considered a reimbersement instead of pay, it lowers the amount you are contributing to Social Security (which you may or may not see anyway down the road) and also because it lowers your gross pay would effect the amount of unemployment you might be elegible for if you became unemployed.

The company suggests it because it lowers your pay, and thus lowers the amount they have to contribute to your social security and their portion of your income taxes, therefore saving them money at your expense.

Find yourself a decent account, who understands the trucking industry, and get the per diem at the end of the year as a deduction rather than taking it in advance. There's tons of math that supports it.

Taking per diem now means more take home money now, but less money in the bank at the end of the year, because you give up 2 cents per mile. You can't get that back.

 

It doesn't benefit the driver in anyway shape or form. It is just another way for companies to screw the driver and put money back in there coffers. Less of your money goes into social security, so that's less money you get when you are ready to retire. It lessons your ability to get loans, because your bring home on paper is less.

 

at .08 cpm you will have to drive 553 miles each and every day to get the per diem you claim at the end of the year.

 

What if a driver usually goes to say H&R Block, or the like then would someone be better off doing the per diem ?

 

I have used H&R blockhead for a few years. The branch owner did fine by my taxes, but I would not recommend them in general for truckers taxes. They just dont have the specialized knowledge for it.

 

Search for perdium discussions on other parts of this board. It also affects workers comp if injured. Also unemployment, and car/home loans.

Want a trucker tax guy? Send me a PM. I have a friend that does mine. He is registered with the IRS and is an owner op with Landstar.

There is some good tax info on this site. Won't find it in the Swift section.

 

New here, so trying to understand this perdium thing period.
In plain terms, what's its purpose, and am I correct in thinking it's a bad deal all the way around? (from what I read anyway)