The "payroll administrative fee" is another name for a "kickback"
God bless every American and their families! God bless the U.S.A.!
Perplexed by forced per diem option?
Discussion in 'Trucker Taxes and Truck Financing' started by rookietrucker, Jan 24, 2012.
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If you want to avoid per diem tell your employer you want to submit dxpense reports. this way they can only "perdiem" you for actual expenses, and you can choose how much to tell them you spend on food in a week.
i avoid it by telling them i live in my truck. in order to qualify for perdiem you must have a "tax home". Per diem is after all reimbursement for money spent while away from home overnight. if your home is in your truck, you do not qualify.
misclassification of income as reimbursement is a huge irs problem, but like other issues in trucking the ATA manages to make oversight look the other way.
look up the werner per diem case that wentto supreme court but was never heard.
in two cases werner took two opposing stances on whether perdiem was income, or reimbursement. the reason being one case accused them of not meeting minimum wage. in that case reimbursement was wages. inthe other case it was overtime pay. in that case they said it was not wages because they were trying to lower the amount that would determine "time and a half". An appelate judge referred to it as werners "twin defenses".
bottom line is if you accet these bs per diem programs the company not only screws govt out of taxes owed, but they also get their greedy hands on refunds based on our so called expenses. idk about you but i dont spend $64 a day on food every day. yet thats what my perdiem is. if you look at my check it equates to 60% of my income being reimbursed food expenses. my verifiable income would wind up in the 20,000 range for the year instead of 60's. try buying a house on that.Rug_Trucker Thanks this. -
Perdium is for people that owe child support, can't handle their money, and think they're getting away with something on giving money on taxes.
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it is definitely not for the intelligent business minded truckers. at least not the way its been mangled. it should be, as the irs states, in addition to wages. if anyone ever started keeping data on the financial abuses within our industry a big can of lawsuits would ensue for labor trafficking.
Rug_Trucker Thanks this. -
It's expense not pay, never has been pay.KANSAS TRANSIT Thanks this. -
I know someone, very close to me who had a similar issue with a carrier. Won't say the carriers name but they were charging a 2cpm admin fee for processing payroll essentially. They ended up settling quietly, with that person that I know. And no, it wasn't me personally. But that person I know who got this quite substantial amount of money from that company, never even filed in any court on the issue. A company can't charge you for processing payroll. Paying your wages isn't an option or a courtesy. It's the law.
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