Why do companies charge drivers for per diem?

Discussion in 'Experienced Truckers' Advice' started by A Bug, Jan 29, 2018.

  1. Brian76

    Brian76 Light Load Member

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    If you’re only driving 100,000 miles a year you are with the wrong company. Unless you were just using that number for argument sake. But if you take the per diem and add in the new adjustable income you get you will pay almost no taxes. I don’t know about you but I would like to keep my money. Plus you can’t itemize anymore as a company driver. Just my opinion.
     
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  3. A Bug

    A Bug Medium Load Member

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    Ha actually I drive a bit under 100k miles a year. But I love my company and will never leave. Driving is only part of my pay, the rest of my money comes from throwing tires at customers all day. Last year I just topped 70k.

    But you are right, I forgot about all the tax changes coming. New marginal rate of 12% I think it is. So then doing per diem will lose me money in the future, I should go turn it off.
     
  4. jraulpilot1998

    jraulpilot1998 Medium Load Member

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    Complex question......Each case/Driver, varies, it depends of what Did you request for payroll/Taxes deductions. I have met multiple dozens of drivers in the past, that do Not understand their Payroll documents. My opinion is, You need to be able to understand "Without a Doubt" every single "entry". If you don't, then take your Payroll info. to a Trucking payroll Specialist and by the Time you exit his Office you should be able to understand the Document. If after that reaction from your part you don't understand then You are "in trouble". (Repeat the process again). You will find Out that people that "work" payroll are humans too. They make plenty of mistakes that affect your final pay. If you don't keep "Tabs" on it..., you will loose.....thousands of "Cents". (A Truckers Pay.....is ALL about cents.) Happy Trails...!
     
  5. free spirited1

    free spirited1 Heavy Load Member

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    We're all getting a pork job from the govt, they just keep the system twisted
     
  6. Gunner75

    Gunner75 Road Train Member

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    Because the lower your taxable gross income, the harder it is to get approved for loans, you also pay less into social security.
     
  7. Brian76

    Brian76 Light Load Member

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    Never had a problem getting loans.
    never had a problem with getting a loan. And if you’re counting on social security being there when you retire you’re in for a rude awakening. I would rather not give the government an interest free loan throughout the year. I get it it’s a touchy subject and to each their own.
     
  8. STexan

    STexan Road Train Member

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    Dude, you're still not getting it! Do some home work before spouting the sales pitch the COMPANY fed you in orientation! [Especially if per diem is an option]

    Furthermore, why would you want to give away 2 cpm back to a company who will throw you under the bus at the first minor incident?
     
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  9. ncdriver1

    ncdriver1 Road Train Member

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    You don't? Per Diem is something you earn regardless of what the company does. Paying them $1500+ a year for the convenience of making the adjustment per check is just wasted money when you can do the same with your withholding and when you file taxes.
     
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  10. Gunner75

    Gunner75 Road Train Member

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    Ya know what, if you feel like saying you make X amount of money per year, when in fact you make slightly more money per year, by means have at it. If you have the right amount of exemptions on your w2 you get to keep more money rather than give it to the govt. I have 4 exemptions and I'm lucky if if I get more than $1000 back at the end of the year.
     
  11. STexan

    STexan Road Train Member

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    I often hear the terms "a little bit" and "slightly less" used a lot when discussing per diem. This is hardly the case in some configurations. Often the per diem amount is roughly 1/3 the "real" amount. If I took per diem option at my company a $66k year would be downsized to about a $42k year. Hardly peanuts. I can accomplish the same thing (tax liability reduction) by itemizing and not penalizing myself later down the road in life.
     
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