Pros and Cons of Roehl's Tax Free plan?

Discussion in 'Roehl' started by doninwooster, Feb 25, 2018.

  1. doninwooster

    doninwooster Light Load Member

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    Roehl offers this tax-free reimbursement to its drivers. My being cynical about anything any type of employer or company does to "benefit its employees" causes me to question if this is an actual benefit for the driver. Any Roehl drivers on this plan?

    This statement on their website sound condescending to me.

    "Creating this voluntary benefit plan is more costly to the business. If you’re getting hung up on that difference, think of it this way – you can certainly sit on the dock and contemplate the physics of how 130,000 tons of steel floats on water and in the meantime your ship has sailed. Avoid getting caught up in paralysis by analysis."


    Tax Free Plan - Are you getting 11 cents per mile tax free?

    Roehl's Tax Free Plan provides a tax free reimbursement for truck drivers who spend the majority of their time at work away from home (AKA: “over the road”). Here’s how it works:
    • We pay you a 12.5 cpm lower mileage rate than our standard fully taxable plans.
    • We provide you 11 cpm as a non-taxable reimbursement.
     
  2. blairandgretchen

    blairandgretchen Road Train Member

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    Yeah - I second the condescending tone there . . .

    So, are they saying,

    52.5cpm is now 40 cpm - and of that, 29 c is taxed, and 11 is not?
     
  3. xsetra

    xsetra Road Train Member

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    It sounds like a tax liability savings for Roehl. No income is tax free.
    Seems like a per diem that transfers the payroll tax from Roehl to the driver.

    They pay 12.5 cpm less to you, in return they pay you an 11 cpm "non-taxable reimbursement"(per diem)
    They gain 1.5 cpm you lose the tax write off (hotels and food) per diem.
    Someone will have to pay tax on that 12.5 cpm. Either Roehl or the driver.
    Tax man cometh, he will get his cut.

    I always take the option that gives me the most income and worry about taxes after I bank the money, not before. I don't mind paying taxes. Means I made a profit. Payroll or Income, both are good.
    Good luck.
     
  4. slim shady

    slim shady Road Train Member

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    Don't board that ship,Stand at the dock and wave as the ship sails
     
  5. blairandgretchen

    blairandgretchen Road Train Member

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    First chuckle of the day - thank you.
     
  6. doninwooster

    doninwooster Light Load Member

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    Aren't company drivers going to lose the daily per diem in 2019, or am I confused about that?
     
  7. blairandgretchen

    blairandgretchen Road Train Member

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    Check the tax topics forum, I think this is currently being thrashed to death over there.
     
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  8. pmdriver

    pmdriver Road Train Member

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    You are going to pay less in taxes if the regulators really allow that, then comes retirement and you look at your social security benefits and they are real low....if you go with that plan better be prepared.
     
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  9. jammer910Z

    jammer910Z Road Train Member

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    Lol. They're charging you 1.5cpm for the per diem benefit.

    On a 600 mile day, that's $9.
    About $40 a week.
    $2000 a year.

    FOR A LITTLE COMPUTER PROGRAM IN PAYROLL.
     
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  10. Scooter Jones

    Scooter Jones Road Train Member

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    It's per diem. Take it through the company and figure out how much tax savings you will have. Then put that saved portion into the company matching 401k plan. It's a no brainer.
     
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