Ok I know this has been talked about before but is Per Diem required for a driver to take? I hear some companys say its offered and some say "whice includes per diem" so is it a option for a requirement?

 

Required by law? - No.

There are some companies that do not give you a choice in the matter. personal opinion -- stay away from them.

I noticed that you are in Texas - you might want to do a google on the Texas PayDay law. It gives details on how employers are supposed to pay employees along with a few other details.

 

I going to check that out right now.

 

I know I posted on here before about per diem or not but I'm confused now, it sounds like a good deal, little tax free money on check each week but then again it dose'nt sound that good. I'm married with 2 children would it be a better idea to do it or at the end of the year? And I'm thinking of going with Schneider and they said Per Diem or mileage pay whats the difference?

 

Do not elect to take the per diem. You will be MUCH better off to take the deduction at the end of the year. You will not need to keep recpts to get the deduction.

 

Per Diem is always a much heated debate on this forum (and others).

This is my opinion so, guys don't shoot me.

PerDiem can/could result in a few dollars more per a trip and ultimately on your check. It is very dependent on your situation. How many miles do you run, how many deductions, what is your overall tax bracket .......

Will it work for you? My view try it for one year each way then after 2 years sit down and evaluate how it affected you. Most companies will allow you to switch in between the two without to much difficulty.

Which one to start with - flip a coin would be my suggestion.

Yes, you can keep your receipts and do it yourself. I do have a question though. Who besides me, can't read receipts from Jan '07 that were printed on one of those thermal printers? You know the kind that print most of those receipts.

 

"can't read receipts from Jan '07" A good reason to scan 'em onto a thumb drive or other magnetic media. BOL

 

Okay ...its just my opinion ...and I am in the same situation ...mostly

Me Personally ...I think what theese folks are saying is this ...with all the Miles , logs , contracts , driving , ...all the mayhem and fun you already face ...just as a driver period ...the last thing you need is a reason for someone else to have a hand in your pocket ... so the less your indentured to anyone the better ...I think that is the message ...would One of you Vets out there set me 5x5 on this ...

Me personally ...I found an old 401 k ...ordered some new engineer boots ...a new oilskin duster ... and am holding about 500 cash for my own personal stash on the road ...

I personaly ( realizing not everyones situation is the same ) do not want to tolerate anything dipping out of my finances any more than I have to for whatever training the company that hires me does ... after that I plan to keep my personal accounts simple as I can ...no loans no advances ... thats what that starting stake is for ...
Shawn(Ogre)

 

per diem take some of the tax load off the comaney end put it on the emplyee. It benifits the co by ruducing the amount of matchig tax they pay for you such as social secuity, I know it may not be around when I retire but I want as much in there as possible. Also if you go to a bank for a loan it can make your yearly gross income look much lower than it is.
It may be right for some but not all, if a Co said you must take it I might walk, it would depend on how much they "charge" you to administer the plan .01-.02 per mile ok but no more

 

Couple bad things about Per Diem

Social Security, when you get ready to retire your Social Security you receive will be drastically reduced due to the amount that was not paid in by yourself and your employer.

Unemployment - If you are laid off and eligible for Unemployment, it will be paid at the taxed rate. Also substantially less than what you were actually earning.

Workman's Compensation - If you are injured on the job, your workman's compensation will also be substantially reduced from what you were actually earning.

Basically it's a pay me now or pay me later. If you have the strength to put extra money in the bank/ira/retirement, etc. to make up for what you are losing by getting a few more $$ each month, it may work out for you.