Per Diem

The company usually just takes a certain percentage of it. Then its up to you to take the rest. Youd have to get with your company to find out what they are taking?

 

Regardless of how the company figures it, you are still responsible for checking the final figures even if you company is paying this automatically.

If they are deducting the full $63 per day on your checks, then you are going to end up owing at the end of the year to make up for the 20%...

There might be special exceptions for the entertainment industry from talking to the dudes from Upstaging & SET but I cannot confirm; as it stands you are only allowed 80% of $63 per day away from home...regardless of what company pays you.

 

I don't see why the entertainment industry would be different. The trucks have the same rules we have. Everyone else gets half what the trucking industry gets.

 

If the company is paying you per diem they are not paying Social Security on that money. So they are saving 7 1/2 percent of what they are paying you as per diem.

You can deduct the 80% of $63. or $50.40. For days you were in Canada, deduct 80% of $65 or $52. You must be away from home to use this deduction.

If the company is paying you $20 a day for per diem. You only get to deduct $50.40 - $20 or $30.40.

The company saves 7.5% of the $20 or $1.50. If the company has 5000 drivers and they each take per diem pay for 280 days a year that equals a savings to the company of $2,100,000. per year.

That is why companies act like they are doing you a favor when they pay you part of your pay as per diem.