Per diem?

Terrible for a company driver. They probably steal a few cents a mile for some BS accounting fee.

Then your gross pay is understated. So when you go for credit purchase, they don't care about your per diem.

And mostly, the hugest rip off. the company is required to match your Social Security contribution ( FICA ). So basically you are letting them off the hook for $3800 a year they should be paying into your social security.

But they will tell you what a big win it is for you.

It's the dumbest move you can make.

 

Per Diem is a scam that benefits the owner of the company you work for

 

You don't have a choice at this point. Vote those out who made this new tax law change. Meanwhile it is in your interest to take the company per diem as a W2 employee, over the smaller benefits lost. Save on income tax and your SS tax contribution on this company per diem, since you are no longer able to take this deduction on your end of the year personal taxes.

 

The new tax law change screwed every company driver who claims all deductions, per diem, and charity events...

 

Opt out. Company drivers cannot get any tax advantage anymore. Per diem pays leaves more room for shady payroll tricks, if your company is so inclined.
No benefit + some risk = No Thanks. IMO

 

While doubling the amount of untaxed income the feds cannot touch.

 

This is incorrect. Op, please read about IRS eligible Per Diem rules concerning OTR drivers. Company per diem plans if properly conducted are allowed under IRS rules, tax free.
This article gets to the brunt of it, if still concerned consult a CPA.

 

The per diem is a good deal people don't understand it seems. Maybe it's not as good as in the past but it still a good deal. Unless you want to pay more in taxes.

My company pays per diem on a day rate. We get it any day, we are 60 miles away from home. Some do the miles thing, you should ask your company.

I made $62,000 had $17,000 in per diem. That $45,000 for taxable income. Now I get new Standard deduction. I get $19,000 as Head Of Household $45k-19k is $26,000, I pay taxes on. I made $62,000 and only paid taxes on $26,000 seems like a good deal to me.

I could tell the company to stop per diem reimbursement so $62,000 -$19,000 is $43,000 and pay taxes on that. I think I'll take the per diem deal.

 

You got a bad tax accountant if you don’t understand.

But that’s why they make chocolate and vanilla