Per diem?

Please explain what you think he doesn't understand? I think Brandt nailed it (although not clear on the rules governing what is allowed by the company or should be) and your the one that has or is the bad accountant.

 

Having just had a long conversation with my tax advisor after eating #### in taxes, per diem is a good thing if you still gross over 40k or so in taxable income. Don't rely on tax returns.

 

You are making blanket statements that are incorrect and also irresponsible as it could influence a driver to make a decision where he wouldn't bring home as much money to his family.

If your company is offering to separate per diem for you, then they are offering you to have a portion of your income ineligible for taxes to make up for all the #### you have to spend money on OTR.

If your company is offering to charge you a fee to separate per diem or isnt offering per diem at all, then I recommend to you that you go look at some job ads on indeed.

 

so you pay more income tax than necesary so the company doesn't save there share of the ss tax ..... if you would take the money you saved by taking the per diem through your company and invest that in an 401k instead of flushing down the toilet by paying the taxes you would be better off . the only drawbacks to per diem is you get a little less social security if you live long enough or it's still there when you retire. but if you took that extra money you saved in put it in a 401k you would end up getting more plus the fact you could get to it in an emergency or could be passed down to your he irs

 

the company's should not charge the administration costs because they are saving 6% for pay roll tax

 

Gawd. There is STILL so much false information being spread about both per diem and how it factors in under the new tax plan. I give up. You’re just going to have to figure it out for yourself. And not every company assesses a “handling fee” for running a CPM per diem plan.

But I will say that if you are FORCED to go onto the per diem model, (no opt out option) that may be an indicator of a company that implements a handling fee which is basically a way to siphon off a penny or more per mile from your labor to the boss’s annual Bermuda golf vacation account.

 

Employees, not just truck drivers, lost the ability to itemize deductions. Employees who travel for work also lost the daily meal allowance for every day spent away from home. These two things are different than a per diem plan offered by an employer to lower your taxable income. But just as kpra rules get called a bridge law, to many drivers this is all per diem and they get themselves confused.

 

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