Perplexed by forced per diem option?

The "payroll administrative fee" is another name for a "kickback"

God bless every American and their families! God bless the U.S.A.!

 

IRS states per diem should be IN ADDITION to normal pay. these companies are replacing your cpm with perdiem which at the end of the year reduces your verifiable income so good luck with credit. it also allows the company to get refunded by the govt for that portion of your pay.

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.

 

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.

 

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.

 

Try finding the IRS reg that uses the word per diem ... It doesn't exist. The only thing the IRS defines is the daily meal allowance expense ...

It's expense not pay, never has been pay.

 

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.

 

Why not name the dirtbags? What's the big dilly-0? Out them. They are probably doing to others and they aren't aware of it. They are probably hosing their drivers in other ways.

 

Starts with S and ends with R, and is 9 letters long. But really, any company that does that is being crooks. Situation particular to that matter though the company allowed drivers to opt-out. Which he tried to do several times. They kept claiming to have lost the form. The 2 cpm was for the per-diem pay they tried to force you to take unless you opted out. Making you pay 2 cpm. Kicker is apparently there was a lot of people who really thought they were coming out better that way. Paying 2 cpm for someone to process their pay. Ain't that something? Suppose it would depend on state law as well. I have heard Missouri will just let employers deduct for whatever and whenever. I live in Texas, though so never had that issue.