Potential Co. has mandatory Per Deim?!?!?

I'm not against per diem, I've been told I should go for it (I'm 27, no way am I getting SSI, lol). Just wanted to say though, every company pretends it's only for the benefit of it's drivers, but per diem saves your company a considerable amount of money as well.

Seriously, how could dropping your taxable income by 30% not be awesome? That's a bracket change.

 

all the people bashing per diem are correct
truth is many companies do it
I bet half the people on here are getting paid that way
they wont tell you that because the self righteous ones on here bash too often
the biggest thing you need is your first job and experience
6 months to one year of per diem is not the end of the world
nor in the long run will it affect years of SS

so my .02 is just get a job and get experience
when I have needed a job that is what I look for a job
when I need a better job I look for that

 

Very well said!

 

What catalina said. Although it doesn't work for a lot of folks, it does work for others. It's all predicated on your personal situation. And as Trans am Pete pointed out, it's not going to crumble your (future) financial empire if you do have to take it for a year! LOL. If you like the looks of the place, or if it's all that's currently offered in your area or experience level, take the ball and run with it grasshopper.

 

Your social security benefits is just one part. Got a wife, got kids? You participate in one of the top ten most dangerous jobs in America. Should you die your wife and/or kids will not benefit from that per diem. Per diem isn't going to help with workmanship compensation either should you lose and arm or a leg. There's more to consider than just retirement. But in the end the choice is yours.

my sister passed away at age 32, she left behind 3 children ages, 6, 9 and 12 her social security hhelped my brother I law survive as well as set them up for college. Anything can happen in life.

 

IMHO, if a company really wants to help you have more take home pay, they should just pay you more. Period. Leave my taxes, and taxable income alone. That stuff is between me, my accountant, and the IRS.

 

Hey, let's not forget the flip side of the coin. I am 100% against per diem pay, but if one company is going to pay me $0.55 a mile, plus perdiem, and the other company does not have per diem, but only wants to pay me $0.37 a mile, then yeah, I will go with the Per Diem job.

 

OK after reading all of this and trying to make sense out of it, can someone break down what you guys mean about per diem and how it is added to the rate a driver gets.

 

Most companies (all "starter companies") don't pay a real per diem. You are given a portion of your pay untaxed. It may be a flat rate, but it's usually 10 to 12 CPM of what you earn is labeled as your "per diem" and you aren't taxed on it. This means bigger net paychecks.

Per diem will drop your listed income by about 20 to 30%. Is that good or bad for you?

 

It REALLY isn't added to the rate you get, at least not here. Basically lets say my driver makes 1200.00 per week, and is away from home 6 nites that week, you would take you allowed Per Diem of 59.00 per day (depending on your circumstances) and times that by 6 or 354.00

take the 354.00 OFF your 1200.00 leaving you with a "TAXABLE" income of 846.00, THIS and only this is the amount that YOU pay tax on. Then after you pay your taxes out of that amount let's say you wind up with 650.00 left, NOW add back in your Per Diem of 354.00 that was NON-TAXABLE.

You will take home, IN YOUR POCKET 1004.00 Without Per Diem you would be TAXED on the WHOLE 1200.00 that you grossed, so your take home might be more like 890.00

BOTH you AND the company pay lower taxes with this method.

As far as how some of these companies figure it as part of your CPM, I frankly have no idea, and I think it is totally wrong to charge a fee for this, just my two cents.

Stan