Just wanted to say thank you for the wonderful job you did explaining this. My husbands work is switching to paying per Diem and this was exactly what we were looking for to explain the break down.
Definitely my favor person to listen to after a long day of driving, I've learned so much from you in less than a month! Thinking I'm might give u a call when I get my own truck lol
Well done video and explaination. We deal with a lot of CA trucking companies for workers comp and bring in payroll and HR partners. This is the best video I have seen explaining per diem.
I think you have forgotten about including the fact that you as a individual driver can then claim the 80% of the $69 on your taxes later when you file your taxes. It makes for a much bigger refund.
No Per Diem = higher tax returns every year and higher soc. sec. payments in retirement. And thank you for pointing out the worker comp element. Seems to me that would mean less money to payout for claims and (potentially) could give the employer incentive to move employees out of the company for a significant claim, or multiple claims.
So by the time everything has been juggled around, instead of getting paid. 70 cents a mile you are really only getting. 62 cents a mile with perdiem. How is this legal?
I drive dump trucks collecting garbage. I start at 5am and when the work is done I go home. 10:15am 10:30 or 11am. But i still get paid the full eight hours. Is that per diem too?
I am a regional W2 company driver. My company offers $66/day per diem. Do you know if 80% of that is non taxed if company provides it to me? Or do you think that entire amount be 100% taxed?
If your business is being taxed as an S-corp and you are also the employee, you are considered a w-2 employee as far as the IRS is concerned so I believe the answer would be yes.
Great question! Per diem only applies when you are required to travel away from your tax home for longer than a work day. This means that local drivers cannot claim per diem
Thanks so much for this well detailed explaination. I have a question for you: my husband is a single member llc taxed as an s corp. He received a 1099 from his employer ( another truck company) on the llc's name and he consider himself a W2 workder for his llc/scorp. Will he deduct the per diem on his individual form or on the 1120-S form?
this video explained everything i was looking for. however, i do have one question. how do i add the per diem back into an employees check? is it another company that handles per diems or do we as the employer have to add it back into their paycheck? that part im not so sure.
Hi Carlito! So the per diem is added back by the employer or the payroll company that you use. Just make sure that the payroll company understands that this Per Diem is not taxable- mine had a hard time understanding this for a while :)
@@TruckingMadeSuccessful thank you. so do you just make it the flat rate the 55.20 per day that the driver is out on the road? is that the number you give payroll company?
@@TruckingMadeSuccessful also one last question, is per diem a write off for the company or just a deduction for the employee? im assuming its a write off for the company included in their wages being a deduction, but is there one on top of that? or is that it?
@@Coconut9795 That is correct. The per diem rate is $69 currently, and 80% of that is not subject to tax which is $55.20. For everyday the driver is OTR away from home, $55.20 of his daily earnings are not subject to withholding :)
do you happen to know what per diem split means ? i get awarded $1045 weekly but my employer said its per diem split that only $13 the hour of it is taxable. thanks in advance
Hi there! So a per diem split is called this because your paycheck is divided into two parts. First part will be the taxable $13/hour and the second part is the un-taxable per diem (therefore, split). Some employers do per diem on a CPM basis, for example 70 CPM pay out of which 10 CPM is per diem. Hope this helps!
@@TruckingMadeSuccessful thank you i found out that i get my salary plus $1,540 a week per deim split thank you . you helped with my question as i was confused
Hi! Yes that is correct. Thanks to the Tax Cuts and Jobs Act, company drivers are no longer eligible to claim Per Diem, unless its done through their employer.
@@TruckingMadeSuccessful Thanks. I've had my CDL for 6 years with a clean record. Maybe it's time to buy my truck and get that per diem. New Subscriber here. Great Content. Saludos from Texas!
Been doing it like this for 10 years now. Ive had zero issues with my income. List the per diem as other income. Bought my house, motorcycle, cars with zero issues. I end up with more money getting the xtra a month than the return at the end. With workers comp, youre talking peanuts, ss just work itll be fine. Just did my taxes last year. 68k with per diem and still getting 2k back... You'd almost be an idiot not doing it this way, unless you have no idea how to manage you money and taxes which in that case it is really stupid if you dont understand. When I didnt claim perdiem my returns were a little bigger but the extra money a month is better
Video Summary: This video explains how per diem payments work in a company, covering the basics of per diem and how it is calculated. It discusses the benefits and drawbacks of participating in a per diem program and addresses how the company benefits from paying per diem. - 00:00 Per diem is a daily allowance for travel expenses that truck drivers can receive, and it is not taxable. - 02:18 Per diem payments are non-taxable income for employees participating in per diem. - 04:38 The person participating in per diem payments has a lower taxable wage but ends up making more net income compared to the person not participating. - 06:57 Participating in per diem can lower your taxable income, but may make it harder to get certain loans, while the company benefits by saving on social security and medicare taxes. - 09:18 Taking per diem decreases taxable wages, resulting in the employer paying less towards worker's comp, but the employees are still covered; The company offers 70 cents/mile starting pay for CDL drivers and 25% of the gross of the load for those who prefer it, and also looking for owner operators to lease on to their carrier with 75-25 split. Generated by Monica AI. Get yours now! 👉 monica.im?r=467891
Girl! This is the best per diem video I have seen on CZcams! Definitely a two thumbs up Bravo! 👏👏👏
Thank you so much! :)
Agreed. Subscribed
Hi friends. Thanks to Violet, I realized there is a mistake in this video. The numbers here are if you are working at 75CPM! NOT 70CPM. Thanks!
I was scratching my head like “wait a min, how did she get $2250?” 😂😂
Just wanted to say thank you for the wonderful job you did explaining this. My husbands work is switching to paying per Diem and this was exactly what we were looking for to explain the break down.
Definitely my favor person to listen to after a long day of driving, I've learned so much from you in less than a month! Thinking I'm might give u a call when I get my own truck lol
Well done video and explaination. We deal with a lot of CA trucking companies for workers comp and bring in payroll and HR partners. This is the best video I have seen explaining per diem.
I think you have forgotten about including the fact that you as a individual driver can then claim the 80% of the $69 on your taxes later when you file your taxes. It makes for a much bigger refund.
The Trump tax cut took the 1040 per diem deduction away for W2 employees. You can’t do that anymore.
Excellent program
Your videos are always very informative. This one was no exception!
I just want to say you did an excellent job explaining this 👏🏾
No Per Diem = higher tax returns every year and higher soc. sec. payments in retirement. And thank you for pointing out the worker comp element. Seems to me that would mean less money to payout for claims and (potentially) could give the employer incentive to move employees out of the company for a significant claim, or multiple claims.
Talking pennies on the dollar
So rather than get bonus pay, they take away from your pay and give it back to you, its not taxed, big whoop. Per Diem is supposed to be a bonus.
Great job explaining this subject!!!
Thank you so much please keep them coming
Best video
Am I wrong here? Just doing the math 70 cents per mile on 3000 miles comes out to $2,100.00 in mileage pay. Did I miss something?
Thanks for the explanation!
How did you calculate the same exact gross amount ($2250) on the per diem and no per diem employee if it's based on number of miles?
Oh goodness, thats a good catch. I was thinking 75 CPM because thats what our drivers make after 6 months. Sorry about that!
So why does my company take out $14 out of each check (weekly) for per diem?
So by the time everything has been juggled around, instead of getting paid. 70 cents a mile you are really only getting. 62 cents a mile with perdiem. How is this legal?
Such great content!
I drive dump trucks collecting garbage. I start at 5am and when the work is done I go home.
10:15am 10:30 or 11am. But i still get paid the full eight hours. Is that per diem too?
I am a regional W2 company driver. My company offers $66/day per diem. Do you know if 80% of that is non taxed if company provides it to me? Or do you think that entire amount be 100% taxed?
Thank you!!
Thank you! Does employee need to submit expense reports and receipts for per diem?
No
Great video
We pay it the exact same way!
So smooth
Great Video!!! What about construction workers? Different Per Diem rates since they stay in Hotels?
Most likely but I am not 100% sure. I only know about the trucking industry
I just asked about per diem on another video 😂 thanks
Is per diem tax deductable for all State taxes?
Very good 👍
That’s not how workers comp is calculated in all states.
so if you hire yourself are you able to enroll yourself in the per diem program
If your business is being taxed as an S-corp and you are also the employee, you are considered a w-2 employee as far as the IRS is concerned so I believe the answer would be yes.
Is this also for 1099 employees? I am assuming yes but can someone confirm
Does this apply to local drivers? Really appreciate the videos, keep it up!
Great question! Per diem only applies when you are required to travel away from your tax home for longer than a work day. This means that local drivers cannot claim per diem
@@TruckingMadeSuccessful makes sense, thanks!
Do you offer benefits to your drivers? If so, can you make a video on how we can set this up as well please
Great question! We don't currently but we are actively looking into it. As soon as I know more, I will make a video :)
Thanks so much for this well detailed explaination. I have a question for you: my husband is a single member llc taxed as an s corp. He received a 1099 from his employer ( another truck company) on the llc's name and he consider himself a W2 workder for his llc/scorp.
Will he deduct the per diem on his individual form or on the 1120-S form?
She never replied🥲😂
So he does it on the 1120S right?
Can you do per diem for an owner operator ?
I think I'm in love. 😍
What is the name of your company? Do you hire company drivers from other states? I live in Pennsylvania.
😍
this video explained everything i was looking for. however, i do have one question. how do i add the per diem back into an employees check? is it another company that handles per diems or do we as the employer have to add it back into their paycheck? that part im not so sure.
Hi Carlito! So the per diem is added back by the employer or the payroll company that you use. Just make sure that the payroll company understands that this Per Diem is not taxable- mine had a hard time understanding this for a while :)
@@TruckingMadeSuccessful thank you. so do you just make it the flat rate the 55.20 per day that the driver is out on the road? is that the number you give payroll company?
@@TruckingMadeSuccessful also one last question, is per diem a write off for the company or just a deduction for the employee? im assuming its a write off for the company included in their wages being a deduction, but is there one on top of that? or is that it?
@@Coconut9795 That is correct. The per diem rate is $69 currently, and 80% of that is not subject to tax which is $55.20. For everyday the driver is OTR away from home, $55.20 of his daily earnings are not subject to withholding :)
Beautifully explained, I would like to work at ur company ☺️
do you happen to know what per diem split means ? i get awarded $1045 weekly but my employer said its per diem split that only $13 the hour of it is taxable.
thanks in advance
Hi there! So a per diem split is called this because your paycheck is divided into two parts. First part will be the taxable $13/hour and the second part is the un-taxable per diem (therefore, split). Some employers do per diem on a CPM basis, for example 70 CPM pay out of which 10 CPM is per diem. Hope this helps!
@@TruckingMadeSuccessful thank you i found out that i get my salary plus $1,540 a week per deim split thank you . you helped with my question as i was confused
Hi ma'am. So company drivers cannot claim Per Diem? It has to be thru employer?
Hi! Yes that is correct. Thanks to the Tax Cuts and Jobs Act, company drivers are no longer eligible to claim Per Diem, unless its done through their employer.
@@TruckingMadeSuccessful Thanks. I've had my CDL for 6 years with a clean record. Maybe it's time to buy my truck and get that per diem. New Subscriber here. Great Content. Saludos from Texas!
What’s the most per deim a company can pay?
As of October 2021, the Per Diem went to $69 per day within the continental US. 80% is tax deductible so $55.20 is not subject to tax.
How much experience do I need to work for your cimpany?
2 years for the reefer. For the dry van 1 year is preferred
Does your company offer paid training?
We do not
@@TruckingMadeSuccessful how much experience is required? Thanks for your reply
it s totally wrong you should take out deduction from (2250+386.40) . 🙈 poor drivers
You’re beautiful
This is stupidity you save a hundred dollars that will eventually hurt you in the long run on worker’s compensation taxes and ssn .
Been doing it like this for 10 years now. Ive had zero issues with my income. List the per diem as other income. Bought my house, motorcycle, cars with zero issues. I end up with more money getting the xtra a month than the return at the end. With workers comp, youre talking peanuts, ss just work itll be fine.
Just did my taxes last year. 68k with per diem and still getting 2k back... You'd almost be an idiot not doing it this way, unless you have no idea how to manage you money and taxes which in that case it is really stupid if you dont understand. When I didnt claim perdiem my returns were a little bigger but the extra money a month is better
@@AM0908 so how do I file my taxes
“All of these taxes” 🤮🤮
Tell me about it
Your soo beautiful 😍
Creepy...
It's s scam the way you do per diem.
Scam, taxes whatever
Video Summary:
This video explains how per diem payments work in a company, covering the basics of per diem and how it is calculated. It discusses the benefits and drawbacks of participating in a per diem program and addresses how the company benefits from paying per diem.
- 00:00 Per diem is a daily allowance for travel expenses that truck drivers can receive, and it is not taxable.
- 02:18 Per diem payments are non-taxable income for employees participating in per diem.
- 04:38 The person participating in per diem payments has a lower taxable wage but ends up making more net income compared to the person not participating.
- 06:57 Participating in per diem can lower your taxable income, but may make it harder to get certain loans, while the company benefits by saving on social security and medicare taxes.
- 09:18 Taking per diem decreases taxable wages, resulting in the employer paying less towards worker's comp, but the employees are still covered; The company offers 70 cents/mile starting pay for CDL drivers and 25% of the gross of the load for those who prefer it, and also looking for owner operators to lease on to their carrier with 75-25 split.
Generated by Monica AI. Get yours now! 👉 monica.im?r=467891