Per Diem

Why not just adjust what is withheld and get it upfront? The perdiem deduction is only benefiting the company, the line they feed you is you can have it now, why wait until the end of the year is a scam. By paying you a lower wage, they pay less in disability premiums, and less in social security taxes. You should be able to adjust your withholding and get it now, and the tax bracket most drivers are in is easy to max out your deductions.

 

Because without pre-payroll per diem, you overpay on the 7.65% FICA tax and you can't get a refund.

That said, companies charging fees for per diem are screwing drivers.

 

$63 is the IRS maximum allowable daily expensee. You get 80% of that without receipts.

Now companies can just cut a check each week for $350. It is easier and is the way it is done in most other industries. But, we're talking about truck drivers here. Give them $350 a week tax free and too many of them won't bother to move the truck.

 

That's some funny, but unfortunately true, stuff right there.

 

If a "home weekends" employer advertises ".38/mile + $28.50 per diem", does that probably mean each full day you are out and away from home terminal they also pay an additional $28.50 that is untaxed?

 

You do not need receipts... Plus there is no listing of 80% in the publication that I can find at this time. If a partial day then it is 75% of the standard daily rate of $63, if in Canada then $68

Read this publication. Most of what is posted is not true...

If a company takes out "M&IE" not called Per Diem, then they can never take out the full amount of what you are able to claim. If they exceed what you can claim then they are dropped out of the Program by the IRS.

 

I've already told you ... page 12, first column, at the bottom ...

 

That's the way I would interpret it. I heard that Epes pays a daily rate.