Per Diem For Company Drivers

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Anne A. (G13Momcat)'s Comment
member avatar

Here's one, where Rick countered Erroll a bit, re: Per Diem.

A Year of Per Diem Results

Pretty good thread!

~ Anne ~

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

Harvey C.'s Comment
member avatar

Here's one, where Rick countered Erroll a bit, re: Per Diem.

A Year of Per Diem Results

Pretty good thread!

~ Anne ~

Here's one, where Rick countered Erroll a bit, re: Per Diem.

A Year of Per Diem Results

Pretty good thread!

~ Anne ~

Discussion prior to 2018 don't account for the fact that drivers can no longer itemize travel expense deductions.

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

Harvey C.'s Comment
member avatar

I don't know how that happened, I hit the Quote button once. Martians?

G-Town's Comment
member avatar

Harvey did you take the time to read all of the information in the thread Anne sent? My guess? No. You dismissed it.

Yes, it was prior to 2018 but it highlights the salient points supporting why it benefits the company and arguably not the driver. Big picture...

I’m not debating this any longer... this is a subject that in the grand scheme of things, is of lesser importance than the majority of topics we address.

Harvey C.'s Comment
member avatar

Harvey did you take the time to read all of the information in the thread Anne sent? My guess? No. You dismissed it.

Yes, it was prior to 2018 but it highlights the salient points supporting why it benefits the company and arguably not the driver. Big picture...

I’m not debating this any longer... this is a subject that in the grand scheme of things, is of lesser importance than the majority of topics we address.

Yes, I read it completely back in March of last year before Michael chose to take per diem with Marten but much of it is not relevant to the tax code today. I only reviewed it briefly today.

Fine if you don't want to debate it. I still have no idea why you asked what Michael's CPA rate 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.
Harvey C.'s Comment
member avatar

double-quotes-start.png

Even with Schneider charging 2 CPM , the net pay to the driver is 16% higher.

double-quotes-end.png

I don't know how you came up with that number. I'd be interested in understanding it though.

I overlooked answering this. In the Schneider example that I linked, the weekly driver take-home pay increased from $704.97 to $818.73, or $113.76. $113.76 divided by $704.97 is 16.1%.

As Steve pointed out, the Federal tax rate shown by Schneider is too high for that level of income, though it could be close if the driver was married and a spouse had equal or higher income.

You said you had done it both ways and I wonder if you've tried it since the tax code changed in 2018. I pay a significant amount in income and social security taxes so it's something I follow fairly closely but I am not a tax advisor, just sharing my observations.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Anne A. (G13Momcat)'s Comment
member avatar

Harvey did you take the time to read all of the information in the thread Anne sent? My guess? No. You dismissed it.

Yes, it was prior to 2018 but it highlights the salient points supporting why it benefits the company and arguably not the driver. Big picture...

I’m not debating this any longer... this is a subject that in the grand scheme of things, is of lesser importance than the majority of topics we address.

Here's a 2019 thread, where Rick stands by his research, and revised it:

Per Diem 2019.

Again, a LOT of good input and conversating, between members.

~ Anne ~

ps: Harvey, I'm pretty sure you meant Michael's CPM rate, ( not CPA ! ) LoL ... (well, that too ?!?!?) ;)

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

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

Anne A. (G13Momcat)'s Comment
member avatar

I don't know how that happened, I hit the Quote button once. Martians?

LoL, they get me, too! I usually kick'em out in the 'Preview' stage, haha!

Best to all, guys!

~ Anne ~

G-Town's Comment
member avatar

Harvey, I changed my mind because as I stated it’s pointless and not a good use of my time to continue debating you on this thread because you insist on being right and prolonging this. Like I said... not a priority and I wish I’d adhered to Old School’s request to refrain from commenting. Sorry OS...

Persist if you will... I’m done playin’.

double-quotes-start.png

Harvey did you take the time to read all of the information in the thread Anne sent? My guess? No. You dismissed it.

Yes, it was prior to 2018 but it highlights the salient points supporting why it benefits the company and arguably not the driver. Big picture...

I’m not debating this any longer... this is a subject that in the grand scheme of things, is of lesser importance than the majority of topics we address.

double-quotes-end.png

Yes, I read it completely back in March of last year before Michael chose to take per diem with Marten but much of it is not relevant to the tax code today. I only reviewed it briefly today.

Fine if you don't want to debate it. I still have no idea why you asked what Michael's CPA rate 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.
John S.'s Comment
member avatar
After the 2018 tax law changes you are no longer allowed to take a standard meal deduction. Your standard deduction was increased but many expenses previously deducted are no longer allowed.

It appears I was wrong so I apologize to anyone I mislead. Things have changed.

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