Perplexed by forced per diem option?

This is simply incorrect. Company paid per diem will ALWAYS put more money in a drivers pocket. To claim otherwise is simply ignorance.

 

Whatever. Have you ever actually done it?

 

It depends on how it's done Lilbit. If some of the per diem payment is withheld by the company to defray "administrative costs" then it can rapidly devolve into a financial screw job. It also depends on the individual's tax situation... if one has enough deductions to allow them to itemize, then per diem payments can reduce the amount of income shielded by the deductions. If on the other hand, the driver is filing a 1040EZ with no deductions and there isn't an administrative charge, it does shield the per diem payment from being included as taxable income.

 

I don't trust anyone to deal with doing anything with my money, especially a trucking company. The trucking company benefits much more than a driver ever will due to reduced costs in payroll, unemployment and other payroll taxes, which are all based on what the payroll amount is that the company has paid out. If one knows a good accountant, there is no reason to pay the government more or give them a free loan for the year. A consultation with an accountant would be all you would need, you don't even need them to do your taxes for you. They aren't that hard, and the only time I have an accountant do my taxes was when I had employees. Take the full amount of your money on your pay check and deal with working the deductions yourself. It's in your best interest.

 

I'm an IC these days (not an employee getting screwed on a 1099) so per diem payments aren't even part of my life. An accountant does my taxes because I really hate doing taxes... you have no idea how much I appreciate having someone do that chore for me!

 

Of course. And there is NO scenario under which not having company paid per diem results in more money in a drivers pocket than having company paid per diem.

If you disagree, please, present the scenario that think supports your position. Put some numbers to it, and I will explain how you are wrong.

 

Ok... AGI of say $35,000, standard deduction. Driver paid 38-cpm for all miles, 8-cpm paid as per diem, and 2-cpm withheld from per diem by the carrier for "administrative costs."

 

And again, you're wrong.

Come up with any scenario you want to try to support your position. Put numbers to it, and I will explain exactly how you are wrong.

 

You lose on pre diem when running all the time. You lose on SSI, workmans comp, and come tax time you cant claim your logged days on your log book for meals. Like it was said already companies claim to pay so much but like decker truck lines they say the pay 42 cent a mile than 15 cent of that was pre diem a 2500 mile weeks gives you 53 dollars a day. on the other hand if you get out of pre diem and take normal pay your SSI gets feed more as well as all the other accounts they must maintane for you per the IRS and other government req. than tax time you can claim 55 dollars for each logged day away from home plus deduct other bills and expences. like tools cell phone truck supllies and so on.

Great tip of the day Stay away from pre diem. its the companies way to screw you in the long run. plus on thing missed here is if your on a 401k so much of your pay goes in depending on how you set it up. I normal went 10 percent of my pay. now that your getting pre diem that gets cut which screws you for retirement. god forbid you do get hurt. that paycheck you get every week right now well we all know it gets cut down already but now take whatever your weekly prediem is out of the numbers when figuring out how much you will get while out hurt....its a screw the driver rewards program