Perplexed by forced per diem option?

(deleted)

oops, i understand it now.

 

Hmmm.

The company I work for automatically deducts $59 dollars a day for "subsustance" pay. I return home every night and have never spent a rest period away.

I called driver pay on it and the said "if you travel 150+" miles from your home terminal you qualify for that.

Seems dicey at best. I opted out.

 

Quick question.....probably been answered here somewhere, but I can't find it.....
Is the "administrative fee" tax deductible?

Thanks in advance.

 

it should be criminal!!! Get a different job they are hosing you!

 

I posted this question in another thread on this website, but yall may be more able to answer it for me. I live in Michigan, the "daily expense" deduction is not allowed for my state taxes here. I am in the process of getting hired on at Roehl, in thier offer of employment package they offered me two choices: tax advantage, or premium pay package. Tax advantage gives .10/mile tax free, premium pay is .02/mile more but all is taxed. If I do the math, figuring 27% for taxes I still come out ahead as far as take-home pay when I get .10/mile before taxes. I do own my own home, and have filed the long form with deductions having been self employed since 1999 (as a sub-contractor in construction), so do I need to consult an accountant, or should I just try it this year at premium pay and see how it goes?

 

IMO if you can handle your money go for all of it being taxed. Easier math. That's what I did when I was OTR. If you get injured on the job your worker comp payments are based on 60% of your taxable income. Same with your social security. It's a win-win for the company.

The $47.20 a day for food comes off your gross income. So I would think it may adjust your gross with the state too? I don't know! No state tax here in TN.

Don't forget any cold weather gear, batteries, cooking appliances, tools, gloves, pens, staples, duct tape, 12V fridge etc is deductable.

 

It's funny how they are giving perdiem special names. Drivers are suppose to make the same amount cpm regardless of perdiem.

It all comes out in the wash come tax time regardless what you do. You don't need no program reducing what is on your W-2 for the many reasons. Example, I was drawing long term disability. Because of per diem hiding my true income, my benefit was reduced by $143 a month. The same goes with Social Security, Medicare, workers comp and 401K match. If you want them reduced, take perdiem. The only thing perdiem is good for is saving companies thousands and millions of dollars depending on their size. That and if one wants a reduced child support payment.

 

Condo,
Think I asked you or Roadmedic before...... when i borrow credit from my carrier for repairs he adds it to the top of my 1099. Something doesn't sound right to me.

( EG: I bought a recon trans and a new clutch at his vendor, charged 3k on his account, he adds the 3k to my 1099 as income then deducts payments and interest )

your opinion?

 

Where I'm at pays mandatory per diem at 0.07 cents a mile. No admin fees taken out. We also get paid our regular mileage pay. All the math I've done is basically having it offset my regular tax deductions.

I've ran the scenario every way possible. I don't see how I'm losing and I still get a nice chunk on my tax returns.

 

It's a mistake on the carriers end because it's not earned income. I'll dig and find the procedures for not agreeing with your 1099. There's procedures to make him correct it and issue you another 1099. If it was last year the return can be amended for up to 3 years.

At minimum on your tax return it could be showed as it is and then cancelled out when you itemize or a business expense.