Practical vs. Speedometer

Discussion in 'Questions From New Drivers' started by Midwest Kid, Feb 20, 2009.

  1. Midwest Kid

    Midwest Kid Bobtail Member

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    Lincoln, NE
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    Hey everyone, I have now had 2 offers of employment from trucking companies here in nebraska. However, here is my question. One of them is going to pay me practical miles at .34 cpm and the other one is going to pay me .31 cpm off the speedometer, with .10 cents per diem. (which means those 10 cents are untaxed)

    Just wondering what might be the better of the two.

    Thanks in advance:biggrin_25511:
     
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  3. dancnoone

    dancnoone "Village Idiot"

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    Take the .34 practical.

    Your retirement years will thank you.
     
  4. 25(2)+2

    25(2)+2 Trucker Forum STAFF Staff Member

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    Not speedometer but odometer, if the company offering 34 cents is long distance hauling, the difference in miles run would probably be negligible, short hauls would be considerable.
     
  5. dancnoone

    dancnoone "Village Idiot"

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    Actually, if they use PC Miler to compute the practical, it will only be 2 or 3%. Even on short runs.

    If they use Rand McNally practical...it may be as much as 7%.
     
  6. jlkklj777

    jlkklj777 20 Year Truckload Veteran

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    I would also take the practical and AVOID the per diem scam. Per diem plans help the company more than they will ever help the driver.

    Do some research on per diem and you will soon understand why it is such a bad deal for the driver.
     
  7. RickG

    RickG Road Train Member

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    You mean they finally quit calling them hub miles ?
     
  8. Midwest Kid

    Midwest Kid Bobtail Member

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    Dec 25, 2008
    Lincoln, NE
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    Thank you for all your reponses to my question, does anyone know of a website that shows the advantages or disadvantages to the per diem pay, i have looked at a few but not really gaining any information from them.
     
  9. IROCUBabe

    IROCUBabe Road Train Member

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    Per diem is a scam! We got 3000ish per diem we were entitled to 5600 deduction on just counting food cost ALONE.

    SCAM SCAM SCAM
     
  10. RickG

    RickG Road Train Member

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    Owensboro , KY
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    The IRS form will ask you how much you are entitled to , then ask you how much you were reimbursed , then allow you to deduct what you were underpaid . Companies will always underpay because IRS will penalize them if they overpay .
     
    dancnoone Thanks this.
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