Will we lose per diem

And you don't even have to depreciate the jet!

That actually raises an interesting question. If I've already taken two years of depreciation on my truck can I take the remaining depreciation all at once next year? And how would that work since depreciation factors in the estimated salvage value at the end of the depreciation period whereas a straight write-off doesn't?

 

So does that mean company drivers should take the per diem plan through thier company..

Big companies seem to be pushing that now instead of a straight pay plan.

 

That plan will likely disapear.

 

No, that's two different things. The company per diem plan affects payday withholding, but doesn't affect the actual FIT tax amount owed at the end of the year (though it does affect FICA). The daily allowance, which we also call pre diem (perhaps incorrectly) only affects your tax return at the end of the year. So if the $63 allowance goes away, why would you want to claim the payday per diem? You'll just end up owing it all back at the end of the year. More to the point, why would the government continue to allow the payday reduction if they aren't going to allow you to claim the allowance at the end of the year?

I never took the payday per diem reduction anyway. You could also reduce your withholding and increase you check by simply claiming one or two additional exemptions on your W4. The difference being that W4 exemptions do not reduce you FICA tax or the corresponding employer matching, whereas the per diem reduction is both pre-FIT and pre-FICA.

 

That's what I was thinking.. I'm just confused as to the message my company sent out, but will keep up on the itemized deductions talk.. since I guess it's not finalized yet anyways.

The way the company said it, they seemed to be getting rid of straight pay, but if there was no deduction how would they keep per diem anyways. Lol

 

Now that I’m in a daycab and buy about 80 bucks a week in groceries, I’ll get the same $12,000 deduction as you OTR drivers living on the road and eating out.

 

I enjoy watching this industry thru my "retired" rear view mirror.
There have been very few pieces of legislation passed thru the years, that the American truck driver has come out on top.

 

Why? I've never been a company driver so I'm not real familiar with it but i was under the impression any per diem paid by an employer was tax free. Thay makes me think those per diem pay structures will become the new normal as carriers compete for drivers.

 

Those plans are usually just to offset the deduction you take for meals so that the driver has the money up front. If they cant deduct it then it would mess up their taxes. Plus from what ive read the companies are losing most of the meals and entertainment deductions too.

 

The expression "per diem" refers to the ten cents a mile that can be exempted from FICA and FIT withholding. It just means you have less withheld in anticipation of declaring $63 per day as exempt income at the end of the year.