Per Diem causes gingivitis and ingrown toenails.

 

and genital warts

 

tell them you will consider it while you are waiting to hear back from the other companies you applied at, and you should be looking at other companies, last year it was $52 a day, if you stay with them, make sure they wear condoms..... :shock:

 

Now that you mension it, I remember reading a post from a driver that worked for Knight, and he said something to the effect that he made less money for the miles because he took the per diem. I work on a % basess but I'll ask out of curiosity if my % pay drops if I wrer to elect to go that route. I think I better stay away from the per diem. Thanks All!!!

 

I would ask someone who is qualified to answer that like a cpa..
There are 2 general thoughts.

1 if they pay you .40 a mile and take .10 per mile for per diem then your income as far as loans taxes and the goverment is concerned is .30 per mile.

now for tax reasons some people with other deductions will take the per diem and it does not hurt them at all. While others who have few or no deductions will take the gross pay.

here is a good lipmens test. Is your per diem pay the same as gross like .40 a mile .30 cents a mile and .10 cents a mile per diem..

or is it .30 a mile + .8 gross? it is however simple math at the end of the day..

If your per diem pay is = to the gross pay then it might be for you if you have enuff deductions.. If how ever it is not = to your pay then NO it is not worth it.

312 days a year if otr out for 3 weeks average 500 miles a day =156k a year Xs .40 = 62,400 a year tax = 62400.00

per diem 52.00 Xs 312 days =16224.00
medical insurance per year 5564.00
replacement items gloves cloths ect. 1254.00
totdal deductions $23042.00 net pay before taxes 39358.00
12k for me and the wife net tax base 27,358.00 taxes 4924.44 net net

net pay 22433.56+16224.00 =38657.56

per diem based 15,600.00 per diem
regular pay 46800.00 - a + b = 62400.00
ok taxe base is 46800.
medical 5564.00
ect 1254.00
dependents 12000.00 deductions 18818.00 net pay 27982.00 taxed 5036.76 net net net pay is 22945.24

22945.24 + 15600.00 =38545.24 net pay

net gross pay 38657.00 =s +111.76 Gross pay vs perdiem pay.
net per diem 38545.24 =s -111.76 make more on gross..

it is really up to you and i would get some cpa advice.

knowlage is a great thing.

 

Careful with the math....The per diem rate is $52.00, however you can only claim 75%.
$52 x .75= $39 x 312 = $12168

 

I cant verify this, but a friend was working for All American out of Georgia. he said he was getting 34 cents a mile and a per diem of 50.00 they told him they were stopping the per diem and giving a 9 cents a mile instead. he said when he got his first check after that, he made 25 cents a mile plus a 9 cent a mile bonus, now THAT"S how to keep drivers!! He quit as soon as they told him his check was right..

 

I took 312 days not 365 days based on what my cpa does and i do write a log so the math is correct.. IF you eat out and can prove it..

it all depends how much home time you have and the goverment does it based on what they think the math is.. I have been audited and with my logs i always win.. Make sure you do a little book dates time places reciepts ect.. As long as you do it with logs and a book of were when who and times it works.. and the 75% rule is for time at home. i am out 312 days a year i don't average i do actual time out..

You have a choice of actual expenses or per diem i always take whatever is the most..