What's wrong with per diem pay?

Discussion in 'Experienced Truckers' Advice' started by Gitana, Nov 27, 2013.

  1. Gitana

    Gitana Light Load Member

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    I mean, I understand it's not only wrong, but should actually be illegal for a company to charge an administrative fee for processing your per diem when you don't have a choice, but if they are not charging anything and the amount is the same or maybe even slightly higher than you would get doing the accounting yourself, what's wrong with it?

    I agree that you should always be able to opt out, but in this case I actually like it because they are taking care of that paperwork and saving me work.

    I guess lower social security wages are an issue, but personally not for us because it's not like he's planning to stay there for 10 or 15 years.

    I'm not arguing that it's better, but is there something I'm missing in this picture?
     
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  3. joseph1135

    joseph1135 Papa Murphy

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    Here's the problem I see with it. It shows that you make less. I don't care what it's benefits are for a company. I'm not on the company level. Problem is that when you go to get a car loan, home loan, etc, you might have made $53,000 last year but it only shows $38,000. That's my biggest problem with per diem.
     
  4. full speed

    full speed Heavy Load Member

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    Ya its just away for most of these companies to rip you off from your taxes and to get buy paying you less money.

    Wene per diem first came out in the industry I't was just what it ment. Additional pay for each day being out.

    The companies took advantage of the interest the drivers had in it and turned it around for they're benefit.
    Not all but most of your bigger companies. Especially them Salt Lake one's. Tend to do the same thing.

    You can actually right off for per diem at the end of the year from your taxes using the long form. That is if your company hasn't already scamed you out of them.

    Mines one of the few companies that I know of that actually give you a propper per diem wage. My company that I work for actually gives me 40 dollers a day for each day out. If your per diem's not like that then your getting screwd.

    Before that I used the long form for years to right off my per diem at the end of the year. Kicking my tax refund up another 1000k or so each year.

    The way most companies do it now is give you so much per diem per mile but pay you less miliage pay. Thus nolifying the purpose of it.

    My company pays me competative milage pay and gives me 40 dollers a day adding another pay check at the end of the month just for per diam.
     
    Last edited: Nov 27, 2013
  5. inandoutoftrouble

    inandoutoftrouble Road Train Member

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    What company do you currently for?
     
  6. double yellow

    double yellow Road Train Member

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    Sounds like you understand it better than 99% of drivers...
     
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  7. craggy1982

    craggy1982 Light Load Member

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    when it comes to per diem it is always better to me to just claim it on your taxes yourself at the end of the year. makes a nice deduction.
     
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  8. CondoCruiser

    CondoCruiser The Legend

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    I read yesterday it is currently being investigated by the IRS because companies are abusing it. My last company claimed I only made $23K my last year when I made over double that. There was nothing in the W-2 box the amount they claimed. Many companies are doing that. If you take any company of size if you can save $5 off each driver turns into thousands in savings for the company. That's one reason many companies penny pinch and pull little quick ones.

    Forced per diem hurts a driver in many ways not just social security. Workers comp, 401K match, disability insurance, unemployment are all based on a driver's wages. When it's forced is a clue something fishy is going on. An administrative fee on top for calculating your own paycheck? :biggrin_2559:
     
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  9. inandoutoftrouble

    inandoutoftrouble Road Train Member

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    Hi Joseph1135,

    How are you?

    Based on your opinions and remarks on the forum, you strike me as a very honest hard working decent human being. God bless you and your family!

    1) $53,000 minus $38,000 = $15,000.

    2) $15,000 divided by 12 months = $1,250 per month

    3) $15,000 divided by 52 weeks = $288.47 a week

    NOTE:
    The federal minimum wage is $7.25 an hour X 40 hours = $290 a week X 52 weeks = $15,080 a year.

    One could take a portion of that $15,000 and both SAVE and INVEST it.

    When it comes time to take out a loan, use the saved and invested portion of $15,000 plus accrued interest as a down payment and base the remainder of your loan on the $38,000 that is reported on your W-2 form.

    Many people are earning anywhere from minimum wage, low income wages, to maybe lower middle income wages, after many years of hard work. Some of the reasons are their own doing, some of the reasons are way beyond their control.

    For many people, having a "REPORTED" income of $38,000 on their W-2 form, while actually receiving an additional $15,000 of "UNREPORTED" income, would be "manna from heaven".

    Many people will never in their entire lives of working ever see an ORIGINAL annual income of $38,000, let alone a "REPORTED" income of $38,000.

    IT IS ALL A MATTER OF PERSPECTIVE.

    NOTE:
    Joseph1135,
    You know better than I do that there are hardworking experienced truck drivers, with clean driving records, earning less than $30,000 a year BEFORE taxes and deductions. This is both SAD and UNFORTUNATE.

    God bless every American and their families! God bless the U.S.A.!
     
    Last edited: Nov 27, 2013
    thebennyman and Menehune Thank this.
  10. inandoutoftrouble

    inandoutoftrouble Road Train Member

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    What company do you or did you work for when all this was taking place?
     
  11. Gitana

    Gitana Light Load Member

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    Kissimmee, FL
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    Wow! They were saving much more than $5 per driver! All good points, thank you. I agree that an administrative fee should be criminal.
     
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