question about earnings

Per Diem: Again??? OK....

The IRS gives a person whose job takes them away from their home a "tax break" for every day and night you are away from home. It is also know as "The 3 Martini lunch" tax break! The one that Clinton took away from us until we #####ed to where he had it changes and trickled it back to us!

Anyway, when you get in the seat of the truck and draw that first line to on duty your time starts. It stops when you draw the line to off duty at home or the yard or wherever that truck is parked.

Your log book will be your proof to the IRS of your days out. KEEP IT! Forever. You hear of this 7 year thing where you need to keep your tax forms? Well forget that and keep them for life. The IRS CAN come and audit you more than 7 years back. The burden of proof is on YOU! It isn't hard to keep this crapola in a big office filing box! I have them all the way back to the mid 70's

ANYWAY!
The Gooberment gives you an estimated amount of money and that's about $59 a day. (2010 year) It's not cash back but a credit and it can be a doozy! Take what the IRS gives you!

NOW: Heres what happens when BFI "pays" you a Per Diem:
First off they are NOT paying you jack crapola! If they were they would put, lets be nice and make it $200 in your pocket when you got to the yard and sent you out. This is for you to eat, motel, and maybe entertainment. You keep the receipts and turn them in at the end of the week and also the change you might have. THAT IS A PAID PER DIEM! Our Military does this, the rail roads used to do this and some companies with roving teams do this and even some trucking companies used to do this. It made it =easier for them to do business. I love it when mine handed me $300 on Monday and I gave them the change on Friday when I got back! They even paid for my clothing because we hauled chemicals and bleach and other stuff really messed up clothes!

What these BFI's are doing is taking a certain amount out of YOUR pay and doing this before they figure your taxes.

You are also CHARGED anywhere from $.01 to I've seen $.07 a mile for this service! Yep something a highschool student can do with Easy Calc in an Excel Spread Sheet these scum bags companies are charging you to do! Lets use a well known company out there that does this! Warner has maybe 7000 drivers in the fleet or close to 5000 trucks. If they make the what used to be regular miles a month of 10,000 and they charge just .02 CPM they MAKE off of their drivers 1 million dollars a month! Do the math to make sure I didn't mess it up! As far as I'm concerned that's good for the RICO act to be charged!

Now onward into this what I'll now call a scam:
They figure this "per diem" out of your pay before taxes. Correct? Yep!
What is the employer obligated to pay on your behalf?
Taxes. Correct?
OK now that this BFI does not show you made as much because of this trick with the numbers so he is NOT going to pay as much in Federal taxes. HEY GREAT for them!
WHY?
Well they won't pay as much to Unemployment,
Workers Compensation
and the best of them all
SOCIAL SECURITY!
OK SSI might not be around when you younger guys retire. If you were smart you controlled your own plan.

ALSO where you will come out on the short end of this is:
You meet that sweet little thing and get married! YES! American Dream on the way!
You want that little house with the picket fence and run to the bank for that home loan!
YOU GET TURNED DOWN!
WHAT????
My pay stubs show X dollars!
Your tax returns show a completely different number and it's LOWER!
BUT,BUT,BUT...
Remember they are taking that per diem OUT BEFORE TAXES!
So now your credit score is a lot lower due to your INCOME!
If you want that home or that car, motorcycle, golf clubs and greens fees or bass boat, you better save that per diem pay they "give you" so you can buy your new home or toys with cash because that bank ain't going to look at you!

Also you DO NOT WANT to get injured on the job! Workers Comp bites to begin with but now that your "income" was lower and less taxes paid in you won't get jack crapola on that money!
Then you got say laid off.
Unemployment pays you what your income was!

WHAT? That's ALL I GET?? You ask?
YEP that "hidden per diem" that BFI so nicely "gave you out of YOUR pay" and charged you to figure now is really starting to pay off isn't it!

Not yet it hasn't

THEN, you turn 65 or maybe by the time you retire they've changed it to 70. But you make it there! You stayed with this company oh lets say 20 years and another one that didn't hit you up on that scam and you file for your not so golden years. You sit there as the worker figures out what you paid in and hands you a slip of paper showing you what you'll be getting and your heart falls!
BUT? I worked all these years you say and the worker turns around whatever they will be using for monitors and shows you your yearly breakdown from the tax files.
Those years at BFI really doesn't look as good as that second job does it? but you got all that piddling maybe $50-$100 a week per diem pay! Well it's going to help pay for the cardboard boxes you'll need to use under that bridge!
Yep that SSI is figured off your income!

Now back to this year!
The ONLY people who benefit from this scam called per diem pay is the company! PERIOD! They pay less in taxes to the gooberment! This should really be firing up those who scream about "rich" people and companies as they aren't pulling their weight so to speak and they're doing this when the country needs the money in this recession! Knowing most of them backed Obama they're stabbing him in the back and making him look bad also!

They also made a ton off of you for them to "figure" that per diem pay out! That's something a secretary can do in about 3 minutes! It took me 7 but I'm not that good with Excel! OR a programmer can do it in about a minute and put it in the companies pay program!
IMHO any more that ONE DOLLAR a month to figure the per diem is stealing out of your pocket and that's too much too!

All this so that BFI does not have to pay as much in taxes on you! It's a legal SCAM they are "GIVING" you and telling you, you get this money tax free!

Now opting out, get used to those 2 words as you'll see it more and more in the future.

To OPT OUT means you have a choice to take something offered to you.
You can take it or not? Opt out.

There are also companies that "let" you opt out but only after you've been there for x number of months.

I'll opt out on signing on with any of these thieves! I want my pay with out all the hiding of some of it. I want my unemployment if you screw up and if I get hurt I really do need the help even if I did pay for a private disability plan like that duck or snoopy deal!

I hope this helped a little.

PER DIEM BAD!
PER DIEM at the end of the year BETTER! That BFI isn't even coming close to that $59 a day but you do get to claim what they didn't pay you so you don't lose it all but what a PINA that you still don't get that nicer refund in April!

And finally WHY do this cheap arsed way to pay a driver?
If you're paying 1980's and 90's pay then pay them! Don't screw them out of that "cost to figure" but go ahead and pay them a COLA pay!

Dude and Dudettes: RUN FAST from any of these companies that tell you a bold faced lie that you'll make more money with their per diem plan! Do you REALLY think these mega fleets are going to do you a FAVOR by giving you something? OH HELLO NO they aren't! They bend over backwards loosing little receipts out of trip Pack envelopes or paying you layover,detention and other things promised to you that you'll need perry Mason to help you prove they owe it to you! They work over time looking for ways not to pay you a final paycheck so you think these top 7 megas are here to help YOU?

OPT OUT!
Opt out by not hiring on with them! Get POed if the company you drive for tells you they are starting a Per Diem plan!

The piddling amount of money you finally get at the end of the week is squat in the long term. It's not whats in the bank at the end of the week but whats there at the end of the year and when you really need it down the road. Quit thing small!

 

Per Diem: Again??? OK....

The IRS gives a person whose job takes them away from their home a "tax break" for every day and night you are away from home. It is also know as "The 3 Martini lunch" tax break! The one that Clinton took away from us until we #####ed to where he had it changes and trickled it back to us!

Anyway, when you get in the seat of the truck and draw that first line to on duty your time starts. It stops when you draw the line to off duty at home or the yard or wherever that truck is parked.

Your log book will be your proof to the IRS of your days out. KEEP IT! Forever. You hear of this 7 year thing where you need to keep your tax forms? Well forget that and keep them for life. The IRS CAN come and audit you more than 7 years back. The burden of proof is on YOU! It isn't hard to keep this crapola in a big office filing box! I have them all the way back to the mid 70's

ANYWAY!
The Gooberment gives you an estimated amount of money and that's about $59 a day. (2010 year) It's not cash back but a credit and it can be a doozy! Take what the IRS gives you!

NOW: Heres what happens when BFI "pays" you a Per Diem:
First off they are NOT paying you jack crapola! If they were they would put, lets be nice and make it $200 in your pocket when you got to the yard and sent you out. This is for you to eat, motel, and maybe entertainment. You keep the receipts and turn them in at the end of the week and also the change you might have. THAT IS A PAID PER DIEM! Our Military does this, the rail roads used to do this and some companies with roving teams do this and even some trucking companies used to do this. It made it =easier for them to do business. I love it when mine handed me $300 on Monday and I gave them the change on Friday when I got back! They even paid for my clothing because we hauled chemicals and bleach and other stuff really messed up clothes!

What these BFI's are doing is taking a certain amount out of YOUR pay and doing this before they figure your taxes.

You are also CHARGED anywhere from $.01 to I've seen $.07 a mile for this service! Yep something a highschool student can do with Easy Calc in an Excel Spread Sheet these scum bags companies are charging you to do! Lets use a well known company out there that does this! Warner has maybe 7000 drivers in the fleet or close to 5000 trucks. If they make the what used to be regular miles a month of 10,000 and they charge just .02 CPM they MAKE off of their drivers 1 million dollars a month! Do the math to make sure I didn't mess it up! As far as I'm concerned that's good for the RICO act to be charged!

Now onward into this what I'll now call a scam:
They figure this "per diem" out of your pay before taxes. Correct? Yep!
What is the employer obligated to pay on your behalf?
Taxes. Correct?
OK now that this BFI does not show you made as much because of this trick with the numbers so he is NOT going to pay as much in Federal taxes. HEY GREAT for them!
WHY?
Well they won't pay as much to Unemployment,
Workers Compensation
and the best of them all
SOCIAL SECURITY!
OK SSI might not be around when you younger guys retire. If you were smart you controlled your own plan.

ALSO where you will come out on the short end of this is:
You meet that sweet little thing and get married! YES! American Dream on the way!
You want that little house with the picket fence and run to the bank for that home loan!
YOU GET TURNED DOWN!
WHAT????
My pay stubs show X dollars!
Your tax returns show a completely different number and it's LOWER!
BUT,BUT,BUT...
Remember they are taking that per diem OUT BEFORE TAXES!
So now your credit score is a lot lower due to your INCOME!
If you want that home or that car, motorcycle, golf clubs and greens fees or bass boat, you better save that per diem pay they "give you" so you can buy your new home or toys with cash because that bank ain't going to look at you!

Also you DO NOT WANT to get injured on the job! Workers Comp bites to begin with but now that your "income" was lower and less taxes paid in you won't get jack crapola on that money!
Then you got say laid off.
Unemployment pays you what your income was!

WHAT? That's ALL I GET?? You ask?
YEP that "hidden per diem" that BFI so nicely "gave you out of YOUR pay" and charged you to figure now is really starting to pay off isn't it!

Not yet it hasn't

THEN, you turn 65 or maybe by the time you retire they've changed it to 70. But you make it there! You stayed with this company oh lets say 20 years and another one that didn't hit you up on that scam and you file for your not so golden years. You sit there as the worker figures out what you paid in and hands you a slip of paper showing you what you'll be getting and your heart falls!
BUT? I worked all these years you say and the worker turns around whatever they will be using for monitors and shows you your yearly breakdown from the tax files.
Those years at BFI really doesn't look as good as that second job does it? but you got all that piddling maybe $50-$100 a week per diem pay! Well it's going to help pay for the cardboard boxes you'll need to use under that bridge!
Yep that SSI is figured off your income!

Now back to this year!
The ONLY people who benefit from this scam called per diem pay is the company! PERIOD! They pay less in taxes to the gooberment! This should really be firing up those who scream about "rich" people and companies as they aren't pulling their weight so to speak and they're doing this when the country needs the money in this recession! Knowing most of them backed Obama they're stabbing him in the back and making him look bad also!

They also made a ton off of you for them to "figure" that per diem pay out! That's something a secretary can do in about 3 minutes! It took me 7 but I'm not that good with Excel! OR a programmer can do it in about a minute and put it in the companies pay program!
IMHO any more that ONE DOLLAR a month to figure the per diem is stealing out of your pocket and that's too much too!

All this so that BFI does not have to pay as much in taxes on you! It's a legal SCAM they are "GIVING" you and telling you, you get this money tax free!

Now opting out, get used to those 2 words as you'll see it more and more in the future.

To OPT OUT means you have a choice to take something offered to you.
You can take it or not? Opt out.

There are also companies that "let" you opt out but only after you've been there for x number of months.

I'll opt out on signing on with any of these thieves! I want my pay with out all the hiding of some of it. I want my unemployment if you screw up and if I get hurt I really do need the help even if I did pay for a private disability plan like that duck or snoopy deal!

I hope this helped a little.

PER DIEM BAD!
PER DIEM at the end of the year BETTER! That BFI isn't even coming close to that $59 a day but you do get to claim what they didn't pay you so you don't lose it all but what a PINA that you still don't get that nicer refund in April!

And finally WHY do this cheap arsed way to pay a driver?
If you're paying 1980's and 90's pay then pay them! Don't screw them out of that "cost to figure" but go ahead and pay them a COLA pay!

Dude and Dudettes: RUN FAST from any of these companies that tell you a bold faced lie that you'll make more money with their per diem plan! Do you REALLY think these mega fleets are going to do you a FAVOR by giving you something? OH HELLO NO they aren't! They bend over backwards loosing little receipts out of trip Pack envelopes or paying you layover,detention and other things promised to you that you'll need perry Mason to help you prove they owe it to you! They work over time looking for ways not to pay you a final paycheck so you think these top 7 megas are here to help YOU?

OPT OUT!
Opt out by not hiring on with them! Get POed if the company you drive for tells you they are starting a Per Diem plan!

The piddling amount of money you finally get at the end of the week is squat in the long term. It's not whats in the bank at the end of the week but whats there at the end of the year and when you really need it down the road. Quit thing small!

Oh look on the meny bar at the top and do a search on PER DIEM and read the rest of the threads on this stupid subject!