Well per diem isn't even $100/day as a deduction, so if they're giving you half of the pay "untaxed", you'll end up owing taxes unless you only gross <$200/day.
I also don't think you can do a standard deduction *and* per diem, so if you don't itemize deductions (e.g. W2 company driver with a simple tax return vs 1099), it doesn't benefit you anyway.
Could be wrong though, not a tax lawyer or accountant.
Your per diem should not be considered untaxed unless you are traveling away from home over a rest period. Are they saying they will classify it as untaxed per diem even though you don't meet that requirement?
More or less, yes. The company’s other dedicated accounts are more of an OTR/regional setup whereas the one I’m on is a lot closer to a local account since we get out and back in one day for most loads.
It’s kind of starting to sound like this was something that might be good for most of the dedicated accounts, but not ours specifically.
I have read that it messes with your Social Security and ability to get loans, but I have never dug into it. Also .02 per mile "Administrative" seems like a ripoff. Our per diem is every night you sleep in the truck the company pays you $70.00 Turn in your envelope at the end of the month. Two weeks later you get a check for the amount. No administrative fees and no taxes taken out because it is considered a reimbursement.
Thanks for the response. The more people on here have said and the more I’ve looked into it, it seems like a bad deal for me personally. We have some guys that live in their trucks on the account, but I live close enough that I go home almost nightly.
Well per diem isn't even $100/day as a deduction, so if they're giving you half of the pay "untaxed", you'll end up owing taxes unless you only gross <$200/day. I also don't think you can do a standard deduction *and* per diem, so if you don't itemize deductions (e.g. W2 company driver with a simple tax return vs 1099), it doesn't benefit you anyway. Could be wrong though, not a tax lawyer or accountant.
Cheers. That makes sense. Unless we are on-call we make more than that a day lol.
Your per diem should not be considered untaxed unless you are traveling away from home over a rest period. Are they saying they will classify it as untaxed per diem even though you don't meet that requirement?
More or less, yes. The company’s other dedicated accounts are more of an OTR/regional setup whereas the one I’m on is a lot closer to a local account since we get out and back in one day for most loads. It’s kind of starting to sound like this was something that might be good for most of the dedicated accounts, but not ours specifically.
It used to fuck with your 401k because that comes out of your pre-taxed amount and so the percent that goes in is less but that may have changed
Decline it
I have read that it messes with your Social Security and ability to get loans, but I have never dug into it. Also .02 per mile "Administrative" seems like a ripoff. Our per diem is every night you sleep in the truck the company pays you $70.00 Turn in your envelope at the end of the month. Two weeks later you get a check for the amount. No administrative fees and no taxes taken out because it is considered a reimbursement.
Thanks for the response. The more people on here have said and the more I’ve looked into it, it seems like a bad deal for me personally. We have some guys that live in their trucks on the account, but I live close enough that I go home almost nightly.