Per Diem Pay For Truck Drivers

Topic 1355 | Page 4

Page 4 of 4 Previous Page Go To Page:
powrline99's Comment
member avatar

Thanks for explaining per diem. Now it makes sense to me.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Chiefmac's Comment
member avatar

@Patski

Would maximizing your exemptions help those who want more in their weekly check and less big refund at the end of the year?

Understanding there would be more effort to keep track of as a trade off.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Izzy's Comment
member avatar

That is the right attitude. The American fascination with a huge tax return is extremely poor financial planning. But it's not only about the big lump versus getting it now. You may be getting less OVERALL. Would you rather have $5,500 extra over 12 months paid each paycheck? Or $7000 extra over those same 12 months but paid in a lump sum at the end? $7,000 is always better than $5,500.

You also can counteract the "lump sum" approach by adjusting your withholding. Again... talk to a professional, it's worth the time. And not just you Daniel, but everyone.

Is there anyone that can show us a real example of the two choices?

Is there someone who can and is willing to show they earned the same amount (as close as possible but no more than a $10,000 annual income difference) for any of 2 years (doesn't have to be consecutive years) with one year showing what they got for per diem through every pay check and their tax return for that year with the other year showing you getting your per diem at the end of the tax year and what that tax return was?

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OWI:

Operating While Intoxicated

Steppenwolf 's Comment
member avatar

Here is what I got for pay. 46803 for year.

Forced per diem pay was 26680 This was my pay for 1040 tax form.

Now the per diem amount is used for social security in 2 years when I get to 65. So now after making around 44000 the last 3 years I have a big drop in this years SS income.

I believe IRS uses last 3 years to pay out SS benefits so now I have to work harder without per diem lowering my gross pay for year, to get SS benefits back up to higher pay out..

I don't like per diem, but if you're younger person it could be good.

That's all I got. Steppenwolf

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

James H.'s Comment
member avatar

I believe IRS uses last 3 years to pay out SS benefits so now I have to work harder without per diem lowering my gross pay for year, to get SS benefits back up to higher pay out..

Steppenwolf

I don't think that's correct. Your Social Security benefits are based on your lifetime contributions. This is from the ssa.gov website "We base Social Security benefits on your lifetime earnings. We adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most."

You might be confusing it with certain defined benefit pensions, which often are based on your final 3 years. This is famously the case with government employees, and why police officers nearing retirement get first dibs on overtime, so they can max out the basis of their pensions.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

PackRat's Comment
member avatar

James nailed it!

Page 4 of 4 Previous Page Go To Page:

New Reply:

New! Check out our help videos for a better understanding of our forum features

Bold
Italic
Underline
Quote
Photo
Link
Smiley
Links On TruckingTruth


example: TruckingTruth Homepage



example: https://www.truckingtruth.com
Submit
Cancel
Upload New Photo
Please enter a caption of one sentence or less:

Click on any of the buttons below to insert a link to that section of TruckingTruth:

Getting Started In Trucking High Road Training Program Company-Sponsored Training Programs Apply For Company-Sponsored Training Truck Driver's Career Guide Choosing A School Choosing A Company Truck Driving Schools Truck Driving Jobs Apply For Truck Driving Jobs DOT Physical Drug Testing Items To Pack Pre-Hire Letters CDL Practice Tests Trucking Company Reviews Brett's Book Leasing A Truck Pre-Trip Inspection Learn The Logbook Rules Sleep Apnea
Done
Done

0 characters so far - 5,500 maximum allowed.
Submit Preview

Preview:

Submit
Cancel

This topic has the following tags:

Per Diem Pay Truck Driver Salary Understanding The Laws
Click on any of the buttons above to view topics with that tag, or you can view a list of all forum tags here.

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More