Stevens per diem pay?

Per diem is done for company drivers only. Not O/O or L/Os.
They post a certain amount of daily pay (can't remember the amount, but it corresponds to the IRS allowed amount..around $54, I think) as 'per diem', or non taxable, and calculate the taxes on the remaining balance.
So let's say you earned $700 in one week, and for the sake of arguement the per diem is $50/day.
They will post only $350 as taxable and figure your tax deductions on that amount, while paying you the other $350 in gross. So if your taxes are $55 on the $350, your net check will be $645.
You have already taken your per diem in each check, so you won't have to do it on your tax forms.
The advantage is you receive a higher net check each week.
The disadvantage is long term in figuring government benefits such as social security. By this method, you earned $350 in the eyes of the government and were taxed accordingly. So your ultimate lifetime contributions to SS are lower and benefits will be lower.
The same can be a problem for qualifying for a mortgage or car loan.
If the loan manager is smart (and often times are dumber than a box of rocks) they will add the per diem back in.

 

Or another way is say your pay is 40 cpm..they will take whatever they want to pay in per diem from the 40..so if its 15, you ge t taxed on 25 and then you get 12 cents non taxed, because they will take another 3 cents of your pay to process your pay..

 

And, even tho I don't do the per diem thing, I don't think they charge you a FEE to pay you your own money. Unlike some of the companies that charge an administrative fee to pay you your own money.

 

Its calculated at (I think) 10 cents per mile. So if your making .28 you would get .10 as per diem and .18 mileage pay.


amd no, Stevens doesnt charge you a fee for doing it.

 

Stevens does not take anything to process your pay. I doubt ANYONE does that, as it's not legal for an employee in most if not all states.

 

Yea my bad , stevens may not, but marten does, and a few other do too,

 

Stevens saves a considerable amount of money paying per diem... since they are required to match the employees SS contribution, the lower it is, the lower the match.

 

Several companies do actually. I know that Werner does as well. Unbelievable right?

 

Thats why you should never accept per diem as part of your pay..we already get a tax deduction for meals and stuff on the road.we need a higher SS match for higher Bennys in the future..