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Jimbpard
Joined: 09 Aug 2005
Posts: 553
Location: Irwin. PA
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| Posted: Fri Sep 23, 2005 11:45 am Post subject: NON PER DIEM PAY or Per Diem pay?? |
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| If Per diem pay is 27cpm, and NON per diem is 32cpm, which would you choose any why?? |
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newtruck
Joined: 01 Aug 2005
Posts: 18
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| Posted: Fri Sep 23, 2005 12:29 pm Post subject: |
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how much of the 27 cpm will be per diem? Or are you saying the difference between 32 and 27 will be the per diem?
Off track a little bit, a recruiter told me yesterday to also look at it this way, if you choose per diem pay, it could effect you greatly when you go to buy a house or a car or anything involving money loans with banks. Just something to think about. |
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Sealord
Joined: 20 Jun 2005
Posts: 1724
Location: Florida
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| Posted: Fri Sep 23, 2005 12:40 pm Post subject: Non-Per Diem |
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| Companies paying drivers using a per diem/non-per diem split are screwing their drivers. You can always collect the allowable per diem when your Federal income taxes are filed which will also reduce your state income taxes. May decrease taxable income by as much as $17k/year. A driver also benefits for the reasons previous poster stated plus your Social Security (FICA) contribution will be higher meaning the employer also has to contribute more for you S/S retirement. BOL |
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Aligator
Joined: 06 Sep 2004
Posts: 880
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| Posted: Fri Sep 23, 2005 12:47 pm Post subject: |
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| I'm against driving for 27 CPM. They can put lipstick on the pig, but it's still a pig. |
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Bisquit
Joined: 08 Feb 2005
Posts: 503
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| Posted: Fri Sep 23, 2005 3:03 pm Post subject: |
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| The guys I drive for pay me .35 per mile. If I have to stay out overnight or whatever I get an additional per diem pay and motel if I don't wanna sleep in the truck.....Don |
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Uturn2001
Joined: 10 Jan 2005
Posts: 4652
Location: East Central IL between the corn and the beans
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| Posted: Fri Sep 23, 2005 5:58 pm Post subject: |
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Even if a company offered me the same base pay rate on a per diem or non per diem tax schedule I would still take the non per-diem pay plan.
Why you ask?
Because by taking the per diem pay option I am screwing myself when it comes to unemployment, workers comp, disability, social security, and quite possibly vacation pay as well. Any benefit that is based on my taxable earnings I would be entitled to less of if I was on a per diem pay plan. |
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GMAN
Joined: 13 Feb 2005
Posts: 9666
Location: Tennessee
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| Posted: Fri Sep 23, 2005 6:02 pm Post subject: |
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| I have looked at this and we have discussed it in a previous thread, but the driver usually winds up making less with the per diem rather than the straight pay. Employers make contributions based upon your salary. The per diem reduces your actual income for Social Security Taxes which allows the employer to pay you less since he contributes 1/2 of all Social Security taxes. He is reducing his tax bite by 7 1/2% of the per diem money. On the other hand, you could wind up paying more in taxes at the end of the year, depending on your tax situation. Your personal income taxes could initially be reduced by getting the per diem, but you could wind up paying more in taxes at the end of the year. 8) |
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