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Per Diem

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by michaelmtc, Jul 12, 2007.

  1. Jul 12, 2007 #1
    michaelmtc

    michaelmtc Bobtail Member

    24
    0
    May 17, 2007
    Bloomington, Indiana
    0
    I got a question. I am talking to a company they pay .35 cents a mile, but they informed me that .07 cents of that per mile was per diem pay. So basically I am thinking I am working for .28cents per mile. If I am correct because is this not going to screw me on my taxes at the end of the year. I am confused, I don't understand how this works I have never worked for a company that pays per diem, so if anybody can offer any clearity to this question, I do appriciate.
     
    michaelmtc, Jul 12, 2007
    michaelmtc, Jul 12, 2007
    #1
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  3. Jul 12, 2007 #2
    Baack

    Baack Road Train Member

    15,294
    10,172
    May 24, 2007
    Wisconsin
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    It wont hurt your taxes.
    You will pay less actually.
    The problem is you will also pay less into Social securty. So less when you retire.
    You will get less unemployment.
    Less workmans comp.
    Probley more reasons.
     
    Baack, Jul 12, 2007
    Baack, Jul 12, 2007
    #2
  4. Jul 14, 2007 #3
    DeputyDog

    DeputyDog Bobtail Member

    30
    0
    Oct 21, 2006
    Dayton,Oh
    0
    I'm told that it will also affect your borrowing ability as your W-2 will reflect only the .28 cpm numbers as earned taxable income. Talk to a tax man and someone from your bank or credit union.
     
    DeputyDog, Jul 14, 2007
    DeputyDog, Jul 14, 2007
    #3
  5. Jul 15, 2007 #4
    Sad_Panda

    Sad_Panda Road Train Member

    1,056
    310
    Dec 2, 2006
    0
    You as a drive also get boned because you can take a per diem for the full amount each day, but if you get the split pay, it turns into a real bear to figure it out. Sometimes you can find out that you can't even run a legal full day in a state and make up the per diem with the mileage.

    And let's talk about the days that you run short. The companies save money on paying taxes on you is why they do it.
     
    Sad_Panda, Jul 15, 2007
    Sad_Panda, Jul 15, 2007
    #4
  7. Jul 16, 2007 #5
    michaelmtc

    michaelmtc Bobtail Member

    24
    0
    May 17, 2007
    Bloomington, Indiana
    0
    Thanks for all the feedback. This site is great, because if you have a question you can get an honost answer. Thanks again for all your help.
     
    michaelmtc, Jul 16, 2007
    michaelmtc, Jul 16, 2007
    #5
  8. Jul 23, 2007 #6
    IrishMike202

    IrishMike202 <strong>"Ireland-It's My Island"</strong>

    121
    5
    Jul 10, 2007
    West Virginia
    0

    Can anyone explain this? How exactly does Per Diem work? I too am confused on this.
     
    IrishMike202, Jul 23, 2007
    IrishMike202, Jul 23, 2007
    #6
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