Question:
I've been reading the per-diem threads on this site, but I'm still confused as to how a company like Millis has it listed on their website.
Millis Transfer Pay Packages
Their starting pay, on the per-diem plan, is .25/mile. Non-per-diem is .30/mile. I've heard some good things about Millis here on Truck Net, but .25/mile doesn't seem like much...
I thought per-diem was supposed to be more? What am I overlooking? Other than bonuses, they don't say anything about how the per-diem (if additional to mileage) is paid, or how much it is.
de KJ5KX

Answer:
Per Diem gives you an immediate tax brake on each pay check. On the net side (after taxes) on your check is often like making 3-5 cents per mile more than you are. For example if you are being paid on a per diem basis and are maikng 30 cpm then your pay check would look more like you were making 35 cpm.
The only advantage to the driver, in most cases, would be the immediate tax brake since part of your earnings are not taxed each pay period.
The disadvantages to the driver come at vacation time when companies that pay per diem typically only pay your vacation wages for the taxable amount, and also if you ever had to collect workers comp with that company you would only be paid the percentage off the wages that were taxed. Also at times it can cause you to have to actually pay in at tax time in certain circumstances which totally depend on your tax situation.
I have a name not a number. I am not cheap but I am resonable.
Answer:
PerDiem pay is not taxed. But at the end of the year it is counted as gross income and you are therefore responsible for the taxes on it. It is also not counted towards your Social Security or as someone else said towards workmans comp or vacation. It is a loophole that allows the company to pay you money that they don't have to pay out as much on. I don't know if that makes sense but on general taxed income the company has to pay out towards Social Security and workmans comp. It makes it look as if you are making more money when you actually aren't.

Answer:
Sorry to disagree with ya but, Per-deim is not taxed and is not taxable at tax time. It is considered reimbursment for otr living expenses, ie, meals, showers etc...Check with your tax man. Per-deim also, does NOT count as income when you are applying for a loan, so think about it carefully for it will show a lower income, then you are really getting.. Also, if ya itemize your taxes, then ya can`t take otr expenses off on your taxes. Again, check with a good taxman current with otr drivers taxes, I did and learned alot.. Bye for now...
fishman

Answer:
Thanks all, for the responses. I drove a lot in my last career, and since I always itemized deductions, I do understand about the employer-paid expenses vs. deductable allowances aspect.
What I still don't understand is do these companies that list the two different pay scales (e.g., Millis: .25/mi per-diem, and .30/mi non-per-diem) actually pay the difference to the per-diem drivers (in this case, .05/mile)? Or is it a lesser amount?
Thanks again, TN is a great education!
de KJ5KX

Answer:
Are there any Millis or Heartland Express drivers who know how the per-diem is paid?
de KJ5KX

Answer:
"What I still don't understand is do these companies that list the two different pay scales (e.g., Millis: .25/mi per-diem, and .30/mi non-per-diem) actually pay the difference to the per-diem drivers (in this case, .05/mile)? Or is it a lesser amount? "
FFM, why don't you ask Millis? Sounds to me if you take their per diem, you are only going to make .25cpm. Yet, you need to ask them 'how much' of that .25c IS perdiem, and if they say 'none of it', sounds like they aren't even holding taxes out on you!! (a true violation of IRS rules!)
If you sign up for the other plan, it says .30cpm. You need to ask them first, and then perhaps a tax person at H&R Bloch, etc, to see how it works.
As saltrodbuilder says, "Per-deim also, does NOT count as income when you are applying for a loan," Most companies that pay per diem ususally pay maybe .25cpm NON perdiem, and additional 5cpm 'per diem'. So the 5c is NOT taxed per week. It IS tho, (I'm 99% sure, fishman!!)it WILL be taxed one way or another at the END of the year, when you DO your taxes. It WILL show up as income as Beeman said, and you WILL have to pay your own SS/Medicare taxes on that. This is a convenient, yet who knows if it is legal, way of letting companies NOT pay their 'fair share' of SS/Med taxes on you. And as fishman said, 'doesn't count towards income' when you apply for a loan. Say if you made $25,000 a yr. and taxed on that, and an additional $5,000 a year 'per diem', I don't think a Loan Officer actually has you as making 30 g's a year, but only 25. I dunno for sure. Hell, you will pay taxes on that 5 g's, no way around it.
There is that great deduction all 'otr' drivers are allow, the 'Rule of '65% of $38 per day' (or $24.70 a day) allowed by the IRS on Form 2106, Line 5. That is how I did it anyway. Some of you deduct/say it is $38 a day, for being in the sleeper away from home. It is 65% of $38, (but heck, who's auditing anyway??
I figured the amount of nights spent in the sleeper, (away from home) and multiplied that by $24.70 a day, and put that in Column B of form 2106, Employee Business Expense. On Line 3 I put the amount I spent on Motels thru the year. (not much!) Line 4 of Form 2106 I put my cost of CB, antenna, 'fridge, gloves, lantern, batterys, maps, DOT physical fee, etc, etc.
Then all this Form 2106 stuff goes to Schedule A-Itemized Deductions. I did all that was allowable there; and got back a big ole' refund last year. Will again this year too.
Probably about 260,000,000 ways to do the tax forms at the end of the year. About 1 for each person in the USA.

Answer:
"I figured the amount of nights spent in the sleeper, (away from home) and multiplied that by $24.70 a day, and put that in Column B of form 2106, Emplo "
I do it this way; others may EAT more than me, and have more than $24.70 a day of meal expenses.
If you eat more than this a day, by all means, take the ACTUAL amount you spend per day on food. Married couples that either team, or one as a rider, WILL probably want to keep all their FOOD receipts in the year. (my lady and I about went broke when she rode with me for 6 months or so! Of course, there was a lot of 'antennae-whippin' time, too!) If at the end of the year you have MORE than the $24.70 per day allowed, then take the actual deduction.
You gotta back it up with actual invoices. Me? I don't save food invoices. Uncle Sam 'gives' me the benefit of the doubt with this legal deduction and none of the hassle.

Answer:
FFM, why don't you ask Millis?
Thanks, Ed'sTruck. I'd rather hear from the drivers first, as a company's response will likely be skewed towards recruiting. Since I'm not intimate with the business yet, I have no way to know if they're being straight with me or only making it sound good.
Plus, asking on the forum will leave a record of this info for others down the line.
de KJ5KX
[This message was edited by FlimFlamMan on December 29, 2002 at 21:22.]

Answer:
FFM, I started with MILLIS in Feb after finishing their school in Cartersville. I chose the per diem route and hope I did not make a mistake. The way it works is that you are paid and taxed on .17 cent per mile. You are paid an additional .08 cent per mile and there are no taxes taken out of that. I will know for sure if I made the correct decision in a few weeks when it is time to do the taxes.
HTH
Tnraven
If you ain't the lead dog, the scenery never changes!!

Answer:
You have mail.

Answer:
Thanks, TNraven! I just learned my brother (who is a trainer for USA) started with their new per-diem plan earlier this year. FWIW, he said he's taking home much more than he did last year. He doesn't have to pay taxes on it at the end of the year, either.
Btw, how do you like driving for Millis, are you getting miles? I didn't see on their website, but I'm curious to know if they pay lumpers 100%, and how much they charge you for insurance, if you don't mind saying?
I appreciate your taking the time to respond. Thanks again!
de KJ5KX
[This message was edited by FlimFlamMan on December 31, 2002 at 14:18.]

Answer:
the tax forum on this web site has a professional tax accountant as a moderator. he's very good at explaining the minutia of tax laws as they apply to the trucking industry. he used to be a truck driver himself for 20 years. he was forced out by an accident. i am a fan of his forum as may be obvious by now.

Answer:
I aint sure where ya got the $24.70 from pardner,but the govt allows $38 a day for everyday that you are not at home......so by all means TAKE IT!!!!!
oh yea i fergot to mention that you actually only get to deduct 60% of that $38 a day(it may be up to 70% for 2002)I aint sure,thats why you get yourself a good tax guy/gal that KNOWS the trucking industry and the tax issues within
BOL
CD
"Not all who wander are lost"~J.R.R.Tolkienrecovering dweller..........oilfield trash division

Answer:
"I just learned my brother (who is a trainer for USA) started with their new per-diem plan earlier this year. FWIW, he said he's taking home much more than he did last year. He doesn't have to pay taxes on it at the end of the year, either."
There is no free lunch in America. I think this topic should go to the Tax Forum and get the straight scoop over there. If you get money, I don't care if you plucked it from a money tree, it must be accounted for and it is taxable.