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Originally Posted by flood
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Originally Posted by firefighteremtb78
whats the per diem pay?
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i would stay away from per diem pay it will mess up things you are not thinking about, it's better to take it off at the end of the year (you'll make out better) but as to what you asked if your pay SHOULD be .28cpm thay pay you .20cpm (tax) and .06cpm (no tex per diem) you will make less but take home more using per diem.
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Per diem pay in real money to the driver is a rip-off, period. It will appear to be more income, however....it will effectively reduce your Social Security benefits, and all you are doing is saving the company 7.62% of Social Security payments on your income. And you're not paying it either, and its a double edged sword...read on.
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IRS gives you write off of 75% of $52 a day for per diem or $39
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This is for each 24 hour period on the road away from home. And essentially... its a freeby.
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but you will have to run 650ml to get the $39 per diem max at .06cpm and you would need to run 650ml every day, what if you are brake down or you need a 34hr (no per diem pay for that day)or your load for the day is only 500ml.
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Looks like in addition to that rip-off sliding mileage scale... more miles = less pay...they found another way to hose their drivers. :x I would even question the actual legality of that. If you're not home.... you should get it, period. So I guess what you're saying is that the "Good Christians" at USX have figured out a number of ways to literally "screw their drivers" and line their own pockets?
Even the IRS isn't that crooked. Just being away from home overnight qualifies for the deduction.
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i just keep up with the days i'm not home and take it at the end of the year, have checked it both ways and this works out better for me.
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It will normally always work out better. Two reasons; First...using the IRS per diem formula is a freeby in that you don't have to spend a dime to get it nor do you have to produce receipts if audited to prove anything. Your logbooks are all the proof you need. Second, what alot of people fail to realize and understand is that when you get paid "per-diem" in real money, you have to provide receipts to back up the use of the money, and if you can't prove spending it all....the difference is to be converted to "ordinary income" which is taxable.
A person can probably get away with mis-handling "cash per-diem" for a while....but if ever there is an audit :shock: :shock: :shock: :shock: that person should wear diapers to the audit....they're going to need them when they find out how many $$$$ they owe the Fed... :lol: :lol: :lol: :lol:
Bottom line:
DON'T DO IT!!!
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