Getting per diem pay means that a driver can immediately recoup some of the expenses they incurred for meals in each paycheck instead of deducting them at tax time and being reimbursed.
Because everyone's situation is a bit different, it is up to the driver to decide the best way to handle per diem pay, assuming they are even offered a choice. As per diem pay has gained popularity with trucking companies, many require their drivers to accept it as a condition of employment.
The IRS has established specific criteria for transportation workers to claim the standard meal and incidental expense deduction on their taxes:
You must be employed in the transportation industry, and your job must keep you away from home on a regular basis. Long enough for you to sleep away from home.
Your job must directly involve moving goods or people by truck, train, bus, ship, airplane or barge.
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.
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
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
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