(Company Driver) Per Diem Making A Comeback!

Topic 24513 | Page 1

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Marc Lee's Comment
member avatar

Please note...

No endorsements or axes to grind here. Just posting information.

This email (web link version) explains how one company is dealing with per diem for company drivers in the wake of recent legal changes. It explains the current legal landscape and is complete with an actual side-by-side comparison of per diem and non-per diem take home pay.

Other companies may begin to implement or modify existing programs to account for the recent changes.

NOTE: Some companies charge an administrative fee to participate in such programs (% or c.p.m.). Also, be aware that lowering your taxable income can have other consequences (beyond lowering your taxes) such as lowering income utilized to calculate ability to qualify for mortgage (and other) loans. Not sure about income-based garnishments, etc..

As always, consult tax and legal representatives where appropriate.

Your mileage may vary!

https://www.google.com/amp/s/fox6now.com/2019/02/05/design-milestone-american-family-insurance-amphitheater-roof-raised-26-feet/amp/

Dm:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.

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

Marc Lee's Comment
member avatar

Oops! Wrong link!

Try this...

https://knowledgecenter.averittexpress.com/e2t/c/*W52-pjk5tVgzqW5sl0Js3DT94v0/*W6fWRH53zgQffW4WHzyB1tT60r0/5/f18dQhb0S4186v3BxHT_GYH1xhrccW4RxyW-3RzCtgW7TPLxl8QC9svW7_qyrJ8zFtRtW5xdc6Q4r1v2WW4xf8_X5lPdZmW2781kw3q1fLBN1rfCGkV9wjKN7Zdn96cxpp7W4Bb0JD2h_9jlW3qQnFl8rs-YvVc5Xd97K4mfhW2wtFBn20L0x5W6lC9Ql6cBkglVBRDph7dVqqhW7kHhKD1m5BlYW54j9-H4YXhxFW73cnw15HcxR5W8ysKcJ8BnwQ7W42YYrS1cQ-53W3-CC7v2nqtV0W88V0lm4cKMZtN2S728J29f8JW9gZ9yS5_5Pv-W88dlP06KkS6wW4V9wp41DmHvFW918y8C3vtV9_W3x2hRk4rcnSTW2CVsWs79kKvRVWCXwq3CB6DYVR_dDq8c_NgsW1fQcTZ7xpJ6rW7cgHH0767Xxhw7SZrs9jGwW2T-4mt6BJwgHW6f77cy1rdPJvW7kPX5Z3TDrjfW7YJvPN26gz9TN1NMKJMSjhyMW6XXcqx9cbKKsN5hqXf2k1lkLW3P4qWT3Kv5l0W1mh7HX4fJB58Vz0Xv78y90D3W6FxD0p8cQMNHW2MkbXG58F8YjW5NLFWh89FPdwW39S9Rv4CyXdtW81PY9k3sZ5_BW2RH1888VmkpLW8sHtpJ7Kw8Z_W4QjsWy2S8zYDW700rDV1vkb76103

Dm:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.
Marc Lee's Comment
member avatar

If all else fails... here's an overview. More details on their web site, supposedly.

Averitt's Per Diem Program

The Averitt Per Diem Manager Program Beginning Jan. 1, 2019, Averitt is offering a company-sponsored per diem program. This is a great benefit to our driving force, allowing our drivers to take advantage of tax savings and putting more money into their pockets every week!

What is Per Diem? Per diem pay is classified by the IRS as reimbursement to cover meal and incidental expenses incurred by drivers while they’re away from home. It gives you more take home pay because less taxes are withheld in your weekly paycheck.

Basically, Averitt pays you a flat rate of $66/day for meals and incidental expenses incurred while you’re away from home. This is a fixed amount instead of reimbursing actual meals and incidental expenses; no receipts are required.

All per diem payments are tax free, are not reported on Form W-2, and are not subject to income or employment taxes. Anyone who travels out of town overnight for work is eligible for per diem. A driver must be working away from home for at least 12 hours. This refers to the day a driver starts and ends the day.

Program Details As of Jan. 1, 2018, company drivers cannot claim a per diem deduction on their end-of-year taxes. Drivers can only receive the benefits of per diem if they are participating in a company-sponsored reimbursement program like ours. A driver who is out of town overnight may receive a $66 meals and incidental expense reimbursement once per day up to seven times per week. Per diem is automatically awarded only after drivers confirming your DOT HOS log each day.

A driver must depart for an overnight trip before noon to be awarded per diem on the first day away from home, and return to their domicile after noon to be awarded per diem on the last day away from home. Per diem is awarded when travelling at least 50 miles away from your tax home ZIP code.

IRS-required time, date and place substantiation is retained and accessible for seven years.

This per diem program is provided as a benefit to Averitt drivers at no cost.

What Do Averitt Drivers Need to Do to Participate?

To take advantage of per diem, there’s nothing Averitt associates need to do. Everything is tracked automatically through a driver's Qualcomm unit. Just confirm your logs the way you already do, and that’s it.

(Example shows tax savings of approximately $1,800 or more on $50,000 "gross pay" for single filer taking standard deduction of $12,000)...

Qualcomm:

Omnitracs (a.k.a. Qualcomm) is a satellite-based messaging system with built-in GPS capabilities built by Qualcomm. It has a small computer screen and keyboard and is tied into the truck’s computer. It allows trucking companies to track where the driver is at, monitor the truck, and send and receive messages with the driver – similar to email.

DOT:

Department Of Transportation

A department of the federal executive branch responsible for the national highways and for railroad and airline safety. It also manages Amtrak, the national railroad system, and the Coast Guard.

State and Federal DOT Officers are responsible for commercial vehicle enforcement. "The truck police" you could call them.

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

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