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Old 09-13-2009, 06:42 PM
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Default I'm forced to take per diem (question)

I get paid and 12 cpm is automatically paid as per diem. Is it legal to be forced to take this? Don't I have the option not to be forced to take it? At the end of the year, if it is a bigger deduction, can I figure taxes on the actual income without per diem and deduct my HOS regulated transportation worker daily deduction? If you run a lot of miles, per diem would benefit you more but considering it is September and I just started working you might get a bigger deduction not using per diem. Anyone know the details of per diem? Thanks!
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Old 09-13-2009, 09:03 PM
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As to being forced to take the per diem, no you can not be forced to have per diem paid this way. You have the option of going to another company and working for them. However, if the company you work for does it this way, it is up to them if you have an option of either before or after taxes. My choice after driving for 3 years with it paid before taxes would be to have it paid AFTER taxes. You won't take home as much cash each paycheck but in the long run you are really screwing yourself having it taken out pre-tax. If you have a company retirement, you will draw less when you retire. If you are laid off, your unemployment will be less, you social security will be less, if you hae an accident and are disabled, your disability pay will be less.

Had I know these things prior to going to work where I am, I would have continued looking and found a place that did pay per diem post-tax, for the employee's benefit, not for the employer's benefit. The reason they pay it pre-tax is so that the employer will pay less money in Social Security and Medicare.

As to the 12 cents per mile, I am not sure how that works out but if you drive more than 433 miles a day they will be paying you more than the federal allowable $52.00 and you may have to pay out of pocket at the end of the year to make up for it!!
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Old 09-13-2009, 09:47 PM
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Thanks!
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Old 09-14-2009, 12:15 PM
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BaldEagle has is mostly correct. I took per diem for years. It does decrease your taxable earnings with the impact on your unemployment (should you need it) and ssn. No, you will not have to pay anything at the end of the year as long as your withholding on your taxable income is correct. What will happen is the company will either issue you two checks, one non-taxable per diem and the other your taxable "wages" or direct deposit two different amounts into your bank account. At the end of the year your company will send your form to you showing each amount split out. You only have to report the taxable wages when you do your taxes.
You can not take per diem and the truckers exemption of $52/day. One or the other.

I did it for years under the theory that I knew how to spend my money better than the government and the less they took in taxes the better. Also, SSN is bankrupt and I don't think I'll see anything from it anyways so I don't want to put anymore money into it than is necessary.
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Old 09-16-2009, 12:02 AM
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Quote:
Originally Posted by madaxeman View Post
I get paid and 12 cpm is automatically paid as per diem. Is it legal to be forced to take this? Don't I have the option not to be forced to take it? At the end of the year, if it is a bigger deduction, can I figure taxes on the actual income without per diem and deduct my HOS regulated transportation worker daily deduction? If you run a lot of miles, per diem would benefit you more but considering it is September and I just started working you might get a bigger deduction not using per diem. Anyone know the details of per diem? Thanks!

Just wondering madaxeman. What coolie carrier are you driving for that is doing this to you and other drivers?

That way we can steer other unfortunates that come to the board away from this **** outfit? Thanks........

"work 80, 100, log 70, paid 40"
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Old 09-28-2009, 12:38 AM
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I don't think Madaxeman is telling everything as a company can not force a driver to take per diem. The others gave good examples of why either taking or not taking per diem can benefit the driver depending upon their situation. I'd go discuss this with them, and if they tell you that you must take per diem then I'd have a word with the department of labor. A company that would do this very likely has a laundry list of other violations, and isn't worth working for. It was stated why companies push this at orientation as it does benefit them, but you do have the choice (legally).
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Old 09-28-2009, 01:35 AM
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My company also only pays per diem. I asked the owner as well as the payroll person - the driver has no choice in not taking the per diem.
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