Income Taxes
Topic 5743 | Page 1
Hey Michael.
They will have you fill out the paperwork specifying how many dependents you would like to claim on your taxes and they'll take out the appropriate amount of Federal, State, SSI, etc.
Most companies also offer per diem pay which means they will pay you some of your salary tax free. The reason they do that is because OTR truck drivers get a lot of deductions for meal expenses, tools, clothing, etc. So instead of making you pay a ton of money each week toward taxes and getting a ton back at the end of the year you'll get more in each paycheck and less back at the end of the year. In the end you bring home the same. With per diem you just get more of it each week and less during tax time.
OTR:
Over The Road
OTR driving normally means you'll be hauling freight to various customers throughout your company's hauling region. It often entails being gone from home for two to three weeks at a time.
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
Hello all I have a quick question? I live in NY not NYC 65 miles south of buffalo NY do the company's you drive for take state and federal taxes out of your pay check or do you have to set money aside to pay your income taxes at the end of the year thx
Thanks Brett for the info love the site on daily going threw looking at all the information on this site having a little trouble with log book part it has been 15+ years since had to deal with logs
Yeah the logbook section is brutal but it's well worth it. There are several different rules and exceptions that can really be used to your advantage but most people don't know them very well.
Logbook:
A written or electronic record of a driver's duty status which must be maintained at all times. The driver records the amount of time spent driving, on-duty not driving, in the sleeper berth, or off duty. The enforcement of the Hours Of Service Rules (HOS) are based upon the entries put in a driver's logbook.
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Hello all I have a quick question? I live in NY not NYC 65 miles south of buffalo NY do the company's you drive for take state and federal taxes out of your pay check or do you have to set money aside to pay your income taxes at the end of the year thx