Per Diem pay plans, Good or Bad idea??

[ohiomohawk]

Just thought I would ask for some comments, suggestions or advice

[Kintama]

I think it's a scam! Just a way for the company to pretend they're paying you more.

[Cyanide]

Bad...

Less money into your 401k plan, social security, medicare, and workmen's comp. Also, you cannot claim your per diem allowance at tax time since it's already been paid to you every paycheck.

Bad...

Less money into your 401k plan, social security, medicare, and workmen's comp. Also, you cannot claim your per diem allowance at tax time since it's already been paid to you every paycheck.

Anyone know an account they could get to come to the board and comment on this? It'd be really cool to see some experianced advice on this posted.

Nendail

[Sealord]

Do an archives search here, at layover.com, pumpkindriver.com, and truck.net. It's been beat to death. Ask your tax preparer which is the best way to go for you. That's how individualized it may be.
In most cases with a driver already having a mortgage, dependents, etc., per diem is a rip off of the driver by their employer. BOL

[got mud?]

I think it's a scam! Just a way for the company to pretend they're paying you more.

every persons needs are diffrent. some people would like to "hide" some of their taxable income because of child support or past bills being garneshed from their wages. also some companys give enough incetive in vacations and extra pay to make up the diffrence. every situation is diffrent.

[syl77dar]

goodluck

[classicxl]

i agree take the money and take your per diem at tax time

YOU CAN GET MORE MONEY W/O DIEM AND CLAIM $54 A DAY ON TAXES WHOLE TIME YOU ARE AWAY FROM HOME!

I believe you actually get to claim 72% of the 54.00 a day don't you? I know you don't get to clame the whole amount, only a percentage.. anyone remember the percentage for certain?

Nendail

[syl77dar]

MY CPA DOES $54 A DAY!~

[Sentinel]

The following link is to the IRS WEB site and will discuss these matters. It is a starting point and you will, as with any government site, have to reference other pages.

http://www.irs.gov/publications/p463/ch01.html

[Quadzy]

I'm actually use it. I'm a great fan of getting tax free money. I'm also a great
fan of not letting someone else hold my money to years end, I tend to think it's safer with me.


Bottom line is most companies tax you on a portion of your per miles money. The part you aren't taxed on is your per-diem. In my case it's .08 per mile that isn't taxed. So, I pay taxes on .30.