Pros and Cons of Roehl's Tax Free plan?

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

  1. jammer910Z

    jammer910Z Road Train Member

    1,455
    2,872
    May 28, 2015
    0
    The per diem is a no brainer.. for sure.
    Especially since the new tax laws are in effect.
    But, they shouldn't be charging a premium for that benefit.

    1.5cpm is a lot of $ on 120,000-140,000 miles.
     
    JOHNQPUBLIC Thanks this.
  2. Scooter Jones

    Scooter Jones Road Train Member

    6,102
    9,925
    Apr 19, 2011
    PNW
    0
    Yeah, I'm not sure about the penny & a half reduction thing. The other option is to keep things as they are for the extra penny and a half per mile and lose the advantage of per diem altogether, because it sure looks like that option is going away for company drivers this year.
     
  3. pmdriver

    pmdriver Road Train Member

    1,902
    2,716
    Nov 14, 2017
    0
    companies are in business to make a profit no matter what, if the money is not coming from a service they provide they will take it from the workers. Welcome to capitalism.
     
  4. Scooter Jones

    Scooter Jones Road Train Member

    6,102
    9,925
    Apr 19, 2011
    PNW
    0
    The difference being that in capitalism, no one (think government agency) is forcing you to work for them. You are free to go and start your own company if you don't like it!
     
    pmdriver Thanks this.
  5. STexan

    STexan Road Train Member

    14,191
    26,877
    Oct 3, 2011
    Longview, TX
    0
    I see you've bought the company sales pitch, too. But to go that route, you have to ignore the fact that Susan who works as a secretary and sleeps in her bed every night get's the additional standard deduction benefit. Meanwhile the OTR truck driver gets the added standard deduction benefit, BUT loses the meal allowance deduction [which was more then the added standard deduction benefit]. So OTR truck drivers, get shafted (or lose the tax savings at best). So much for OTR drivers being a hard commodity to come by if the government can treat them like this. Blue collar truckers are being penalized. Whereas other deductions such as state income tax and property taxes and mortgage interest charges were only REDUCED (or capped) but not eliminated altogether like the standard daily meal was eliminated for truckers. See how much the government and large carriers appreciate you OTR drivers? I'd be okay if they'd just implement a meal deduction cap but this is not the case, apparently. But it is allowed for owner operators? WTF is the difference?

    No doubt the carriers pushed hard for this "tax cut" that convinces many to participate in the per diem plan, helping reduce the employer payroll tax liable considerably. This also shafts the driver later in life when they start looking to take what they were forced to participate in, social security benefits (it's the principle of the thing). Also, if you get in an accident or suffer a health problem causing you to lose work and use your insurance to provide income while away from work, you're going to be judged based on your new "reduced wages income" that the per diem resulted in. Same goes for an OTJ accident and workers comp benefits.

    Drivers should write their representatives and demand they reinstate the itemized deduction for meals and other expenses of OTR drivers who sacrifice so much and are forced to deal with the many issues of living on the road, in between truck stops.

    I used to stay in a hotel every once in a while to get out of the truck for a night. Now, I have to think twice before incurring this expense as it's no longer deductible. How is this good for the economy? How is this good to keep me in a job that nobody wants to do?

    Rant over for now. But all OTR drivers who stay out for extended periods like in excess of 300 days a year, should be mad at what was done to you [in the context of the average taxpayer got a benefit, with no offsetting liability]
     
    nordrunner, JOHNQPUBLIC and jammer910Z Thank this.
  6. pmdriver

    pmdriver Road Train Member

    1,902
    2,716
    Nov 14, 2017
    0
    But it seems like capitalism they need to always have more and if they do not get it from doing business honestly they can move the numbers around to make that profit...guess what, you are a number.
     
  7. Scooter Jones

    Scooter Jones Road Train Member

    6,102
    9,925
    Apr 19, 2011
    PNW
    0
    I haven't "bought" anything. I'm an owner operator. I file as an S-Corp. Part of my pay package is per diem. The new tax law doesn't effect me one bit as far as per diem deduction is concerned.

    The reality is the tax law changed. There's always winners and losers in these situations. If per diem deduction is not an option now on 1040 schedule A, then a company driver has one of 3 options. Period.
     
  8. jammer910Z

    jammer910Z Road Train Member

    1,455
    2,872
    May 28, 2015
    0
    Bingo!!!
    You said a mouthful !

    100% correct.
     
  9. doninwooster

    doninwooster Light Load Member

    158
    105
    Feb 19, 2018
    Wooster, OH
    0
    $1800-2100.00
     
  10. doninwooster

    doninwooster Light Load Member

    158
    105
    Feb 19, 2018
    Wooster, OH
    0
    So if I understand this correctly, let's say a new cdl driver for Roehl gets 37 cpm. In the Roehl Tax Free Plan, they deduct 12.5 cpm, and add 11 cpm non-taxable as per diem. This is 35.5 cpm, correct? Don't know if this is an optional plan with Roehl or a requirement. 25.5 cpm with 11 cpm non-taxable, vs 37 cpm. Since company drivers can't claim per diem either way anymore, what is the benefit beside lower taxes now? Later, Social Security benefits, etc. would be lower, would they not? Maybe I am confusing myself.
     
  • Draft saved Draft deleted