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TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board
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<p>[QUOTE="MercuryLine, post: 11606138, member: 281414"]Thank you for this insight. So just to clarify- if I was doing 65 cents per mile, 50 cents wages and 15 cents will be per diem, that means that it will be miles * 65 cents per mile, 15 cents/mile of which are not taxable, correct?</p><p><br /></p><p>So lets say 2500 miles a week</p><p>Wages: 50 cents per mile = $1250 in taxable income</p><p>Per diem: 15 cents per mile = $375 in non taxable income</p><p>Approximate tax withholding on taxable 50 cents per mile = $272</p><p><br /></p><p>Take home pay= $1353, correct?</p><p><br /></p><p>I am still a bit confused why its not an incentive, I would love if you could go into detail on that. I know that the company saves money because it has to match the employment tax, and that is based on taxable wages. But the take home pay for the driver is larger because not all of it is subject to withholding. I know some people dont like per diem because of Social Security, but I am sure I am missing a ton of other reasons why per diem is not popular among some individuals. Would love your thoughts![/QUOTE]</p><p><br /></p>
[QUOTE="MercuryLine, post: 11606138, member: 281414"]Thank you for this insight. So just to clarify- if I was doing 65 cents per mile, 50 cents wages and 15 cents will be per diem, that means that it will be miles * 65 cents per mile, 15 cents/mile of which are not taxable, correct? So lets say 2500 miles a week Wages: 50 cents per mile = $1250 in taxable income Per diem: 15 cents per mile = $375 in non taxable income Approximate tax withholding on taxable 50 cents per mile = $272 Take home pay= $1353, correct? I am still a bit confused why its not an incentive, I would love if you could go into detail on that. I know that the company saves money because it has to match the employment tax, and that is based on taxable wages. But the take home pay for the driver is larger because not all of it is subject to withholding. I know some people dont like per diem because of Social Security, but I am sure I am missing a ton of other reasons why per diem is not popular among some individuals. Would love your thoughts![/QUOTE]
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TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board
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