JB Hunt Driving Miles

[redsfan]

Ok...sarcasm aside. I'll try to post this with out getting my personal feelings into it.

First. Per Diem. This is the amount per day you can take off your earn income for every day you are away from your home. Thats $52.00 per day. Times that by 7 (are you driving 7 days aweek for JB Hunt?) That's $364.00 per week off you income for every week you are out. ($52 * 7days = $364) Now the per diem amount that JB give you is about $.095 per mile. the rest of your $.315 pay is your pay, which is about $.22 per mile. So, in order to get the amount of $364 per week, you have to drive 3831.58 miles in a week. Now, if you are getting these miles, GREAT. However, I don't think you are. Sorry, no sarcasm...

So now if you take the 2500 miles per week (that I never got) and times by .34, you get $850 per week, or about $44200 per year, working 52 weeks a year, no time off. The per diem amount that the gov. lets you take off is $364 per week, or $18928.00 deduction for your income, putting you taxable income at $25272.00 per year. This means a hugh refund at the end of the year. With JB Hunt's per Diem pay, you only have $237.5 per week (2500 * .095), or a deduction of $12350, and your income after this is $28600.00 taxible income (based on $.315 per mile * 2500 miles per week * 52 weeks minus per diem). Hmmmmmmmmm. Not much of a tax break. BTW, the total amount per year on the per diem plan JB offers is $40950.00 (2500 * .315 * 52). Hmmmmmmm. That would mean you make less, not more. And you pay more taxes. Who figured?

So yes, the per diem is good for all drivers, if used the way the government ment it as a deduction. Not the plans companies offer (like JB Hunt), which are not for me. And If I'm wrong about the amounts, please correct me. This has been a debate for a long time.

Second. The Enron comment. I was not meaning that you shouldn't invest for your future, but I did say "saving", so I guess that is wrong. Should have said something about 401K and companies retirement plans.
The 401K or retirement plans that companies are offering just don't make the kind of money you have to be prepared for. And when you got companies, like Enron, who STEALS that plan from their employees, you are taking a HUGH chance on you being able to retire. And a good 401K will give you a 16-20% return on you money, but the average return is lower than 10%. And with the cost of living going up, the return is simply not enough.

Now, I do invest into almost everything that will provide me a profit. It's not hard, you just take the money that you would have invested into the 401K, and invest it yourself.

For example:

I went to a tax sales and bought a 1/2 acre lot for $750. Less that 90 days later, I sold it for $5000. I do this off and on. This last year, I have invested about $2500 into investments, sold over $10,000, and still have 5 lots left. For Sale, if your interested.

Another example:

I started a small business in my home. (small wifi hotspot & land investments) Because I'm using my home for these businesses, I get to deduct 1/2 to all of my home payment, some of my electric bill, and the cost of the DSL line. Now, even though my wifi business will be in the red for a time, I do get deductions that I would normally would have to pay anyways. That lowers my taxable income, which means lower taxes.

This is the kind of return/deductions I have to make in order for me to retire. 401K can't do this for me. So I don't support them.

Just a couple of things that I will point out.

The per diem that you are allowed to deduct is a percentage of $52/day. I believe that it is 75%, but it may be 70%. I would have to go back and check.

One other thing that I never see in the per diem debate is the fact that just because you take the per diem pay from your company, that doesn't mean that you cannot deduct the difference between what you are paid and what you may deduct.

Example: For argument's sake let's say that the percentage is 75%. You are paid 9 cpm in per diem and you drive 2000 miles in a 7 day week. This gives you a total of tax-free per diem from your company of $180.00. Let's pretend that you have these same exact numbers for every week of the year. So, you are paid $9360 in per diem from your company for the year. If you are able to deduct 75% of $52 every day which comes to $273 for the week or $14196 for the year. Just because you took the company's per diem pay that does not disqualify you from being able to deduct the balance of what you are entitled. As a matter of fact you can, and should, deduct the balance. You simply subtract 9360 from 14196 = $4836 and you then deduct that amount from your taxes. This is perfectly legal, this is the way it was intended to work. I know several truck drivers who do the same thing and any tax accountant worth their salt will make you aware of this. It's basically the same as claiming dependants on your paycheck. You can claim more and take home more pay per week or you can just claim yourself and get a bigger chunk at the end of the year. It's basically a matter of personal preference. This in no way, shape or form screws a driver over. Does the company benefit from this? Yes, they absolutely do, but it also does not hurt the driver one bit.

Another misconception that I hear all of the time is that banks will not qualify you for loans because per diem makes your income lower. I can't speak for every bank, but I showed my paystub to the manager at my bank and he told me that yes, they would count that as income. It may be in a different box, but still it is clearly income for me.

Just my 2 cents (or 75% of 2 cents...)

[stranger]

We had a driver a few weeks ago come in and go out to eat with us who has been here 19 years and has over 2 million in his 401k. Its a shame more drivers don't take advantage of things like that.

That is quite a feat. He started 19 years ago. I would assume that his 401k has a lot of JB stock in it, which has risen quite a bit in 19 years. This would account for the high dollar amount.

I can't see into the future, but I don't see JB stock rising as much in the next 20 years as it has in the last 20 years. I could be wrong, but trucking and competition has changed.

The main point I was trying to make, is that the way most trucking companies run a driver into the ground with low pay, little home time, and termination if they think for themselves, the odds of today's truck driver staying at one of the big companies OTR till retirement are very small.

If a driver does manage to find a company he can stomach, how long can his body and mind stand what is required of him?

When I started driving Dallas had a little over 300,000 people. There was very little traffic, which was good, for most interstates were not finished, which meant a lot of detours on two lane roads through towns. Many interstates weren't even started yet.

The DOT did not bother you as much, many states did not even have scale houses. Companies had warehouses and there was hardly any just in time freight. I was told when I picked up my load to check in every couple of days, and call when I was empty. No delivery appt.

Today there is so much stress associated with this job coming from the company, the shipper and receiver, DOT, traffic, and time away from home.

Back in the "old" days, if a dispatcher told you that you would be out four to six weeks, and then get 2-3 days off, he had better be running, and hope he could outrun the driver. Why do you think all the old terminals have the glass with the little hole to poke bills through? To keep the driver from kicking the crap out of the dispatcher if he got out of line.

Back to my point. What good are benefits if a driver does not live long enough to use them? If he does live to retirement after 20-30 years of OTR, out 4-6 weeks at a time, he sure won't have a family to leave anything to anyway.

I am not talking about every company, and I am not talking just about JB, I am talking about all the big boys who use drivers up and spit them out.

[Cluggy619]

Just a couple of things that I will point out.

The per diem that you are allowed to deduct is a percentage of $52/day. I believe that it is 75%, but it may be 70%. I would have to go back and check.

One other thing that I never see in the per diem debate is the fact that just because you take the per diem pay from your company, that doesn't mean that you cannot deduct the difference between what you are paid and what you may deduct.

Example: For argument's sake let's say that the percentage is 75%. You are paid 9 cpm in per diem and you drive 2000 miles in a 7 day week. This gives you a total of tax-free per diem from your company of $180.00. Let's pretend that you have these same exact numbers for every week of the year. So, you are paid $9360 in per diem from your company for the year. If you are able to deduct 75% of $52 every day which comes to $273 for the week or $14196 for the year. Just because you took the company's per diem pay that does not disqualify you from being able to deduct the balance of what you are entitled. As a matter of fact you can, and should, deduct the balance. You simply subtract 9360 from 14196 = $4836 and you then deduct that amount from your taxes. This is perfectly legal, this is the way it was intended to work. I know several truck drivers who do the same thing and any tax accountant worth their salt will make you aware of this. It's basically the same as claiming dependants on your paycheck. You can claim more and take home more pay per week or you can just claim yourself and get a bigger chunk at the end of the year. It's basically a matter of personal preference. This in no way, shape or form screws a driver over. Does the company benefit from this? Yes, they absolutely do, but it also does not hurt the driver one bit.

Another misconception that I hear all of the time is that banks will not qualify you for loans because per diem makes your income lower. I can't speak for every bank, but I showed my paystub to the manager at my bank and he told me that yes, they would count that as income. It may be in a different box, but still it is clearly income for me.

Just my 2 cents (or 75% of 2 cents...)

Thanks for the info about the per diem.

I really don't understand why they set a amount, then tell you only 75% of that amount.....kinda redundant....oh well.

Please adjust my earlier comments for this info.

Thanks.

[neverbeenlate]

YOU CAN ABSOLUTELY RETIRE A MILLIONAIRE. I HAVE DRIVEN FOR 18 YEARS AND WORK FOR JB'S PPG DEDICATED. WHEN I RETIRE I WILL BE A MULTI-MILLIONAIRE. JB'S 401K IS NOT CONTROLLED BY JB HUNT IT IS CONTROLLED BY MERRILL LYNCH WHICH TAKES THE ENRON COMMENT OUT OF THE ARGUMENT. PER DIEM IS SIMPLY A WAY TO KEEP YOUR MONEY IN YOUR POCKET ALL YEAR RATHER THAN LET UNCLE SAM USE YOUR MONEY ALL YEAR INTEREST FREE--YOU KEEP THE MONEY. IF YOU ARE ONE OF THOSE IDIOTS THAT THINKS GETTING A BIG TAX RETURN CHECK MAKES YOU FEEL GOOD--THINK ABOUT HOW UNCLE SAM USES YOUR MONEY ALL YEAR AND PAYS YOU NOTHING FOR IT. IF YOU TOOK THAT MONEY THAT YOU GET ON PER DIEM AND INVESTED IT THROUGHOUT THE YEAR IT WILL ADD UP TO A LOT MORE THAN THAT REFUND CHECK YOU GET...JUST ASK YOUR ACCOUNTANT

[Cluggy619]

YOU CAN ABSOLUTELY RETIRE A MILLIONAIRE. I HAVE DRIVEN FOR 18 YEARS AND WORK FOR JB'S PPG DEDICATED. WHEN I RETIRE I WILL BE A MULTI-MILLIONAIRE. JB'S 401K IS NOT CONTROLLED BY JB HUNT IT IS CONTROLLED BY MERRILL LYNCH WHICH TAKES THE ENRON COMMENT OUT OF THE ARGUMENT. PER DIEM IS SIMPLY A WAY TO KEEP YOUR MONEY IN YOUR POCKET ALL YEAR RATHER THAN LET UNCLE SAM USE YOUR MONEY ALL YEAR INTEREST FREE--YOU KEEP THE MONEY. IF YOU ARE ONE OF THOSE IDIOTS THAT THINKS GETTING A BIG TAX RETURN CHECK MAKES YOU FEEL GOOD--THINK ABOUT HOW UNCLE SAM USES YOUR MONEY ALL YEAR AND PAYS YOU NOTHING FOR IT. IF YOU TOOK THAT MONEY THAT YOU GET ON PER DIEM AND INVESTED IT THROUGHOUT THE YEAR IT WILL ADD UP TO A LOT MORE THAN THAT REFUND CHECK YOU GET...JUST ASK YOUR ACCOUNTANT

Well, at least you know where your cap button is. However, in a different post, you stated you only drove for 15 years. Which is it? REAL drivers know how long they been driving, and are never off by 3 years. Not unless they have been drinking. Quite alot. And I believe they still would know.

[ben45750]

WHEN I RETIRE I WILL BE A MULTI-MILLIONAIRE.

If I say I am going to quit smoking tomorrow does that make me a non-smoker today? Honestly......how many retired truck drivers do you really know that are worth more than a ONE-MILLION dollars? Then ask yourself how many retired truck drivers do you know?

The only retired truck drivers worth more than ONE-MILLION dollars (not a multi-millionaire when they retire) are the ones that got smart and figured out that if they buy trucks and hire drivers to do the driving for them.... those are the MULTI-MILLIONAIRES in the trucking industry.

And back to the thread, I just started out with JB Hunt 3 weeks ago. It has been a rough start with them. last week was my best week with a little over 2,000 miles. In the last 3 weeks I have sat for more than 24 hours 3 times waiting for loads, sometimes I get preplanned and sometimes I only sit for a 30-60 minutes and other times it's 3-6 hours. The runs have been getting better because I am asking for them not waiting for them to give them to me, 1st 2 weeks I had several 300-500 mile runs and more than 24 hours to get it there. Was a little pissed they promised me home every 14 days, well if you don't tell them up front when you want to go back home they assume you want to live in the truck. But they got me home for 3 days for Christmas so that made me happy.

There are many good things that I like about them though. In the last 3 weeks I went to Canada, ran a bunch a short runs down in the South (Florida, Georgia, Alabama, Mississippi and Texas in the 70-80 degree weather in December) I got to play in the snow in Up-State New York and I'm driving a nice truck. I'm laid of from a LTL job and wanted to make a few extra bucks for Christmas but I plan on going back out for a couple more weeks till I get called back.

Honestly working for JB Hunt is pretty easy work and bringing home $650-$700 isn't bad pay for easy work.

My best advice for a driver thinking about driving for JB Hunt tell them what you want and what you expect and let them know if they can't do it you will move on. If you are a good driver with a good attitude they will work with you. It's to easy to slip between the cracks when your working for a company with 15,000 employees but also along with that there is a good opportunity to make some good cash again if you are a good driver with a good attitude.

last week was my best week with a little over 2,000 miles. In the last 3 weeks I have sat for more than 24 hours 3 times waiting for loads, sometimes I get preplanned and sometimes I only sit for a 30-60 minutes and other times it's 3-6 hours.

That's the biggest rap I've heard about ole' JB from their drivers: lots of short-haul work and sitting around waiting on loads. No wonder every other truckstop has a JB Hunt recruiter handing out business cards.

[ben45750]

I've been on both ends of the driving spectrum. Driving for Star running 3000-3500miles in 5 days and the only day I was legal was the first 11 hours of my week compared to driving for JB 100% legal all the time and making a whole lot more money. At this point I also refuse to run illegal and having something happen that would effect my job with Roadway. I really don't mind not getting a ton of miles, as long as I'm not spending my savings while i'm layed off I'm content.

I still say there is nothing wrong with JB Hunt and they are good company to work for.

[ben45750]

Well back to update on my JB Hunt Driving miles. Just got home today and I'm off for 4 days. I have 1400 miles in since Tuesday Morning (end/begin pay cycle) and don't go back till Sunday at 10:00 so this week will be light on miles. Last week I had 3100 miles and the week before that I hit right at 3000 miles. If you have a 3000 mile week with JB Hunt and you do the per diem your bring home $1000 a week, $1000 net not gross.

I have been running alot harder, wasn't used to running that hard after driving local so I'm getting back of the grove of driving OTR. I am also picking up and delivering all my loads as early as I can but running pretty much legal. They are also starting to give be better runs, more of the 700-1100 mile runs instead of the 300-400 mile runs. My dispatcher will tell me if they are drop and hook or live loads so that gives me an idea of which ones to get there early and which ones to take my time on so I don't waste my time sitting and the shipper/receiver. I am also not refusing loads, last week I did a short run to Quebec from Syracuse that other JB drivers refused that had earlier available times than me, then after that got a nice easy 1100 mile run.

So things are going pretty good at JB Hunt for me and Roadway is still slow so going to hang out with JB for a while.

[danj_otr]

Warning, once JB finds out you are alive, they will never stop calling you.

Not true! I told them I was moving 200 miles from their drop yard in Seattle and they dropped me like I was nothing!