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USExpress Per Diem

Discussion in 'US Xpress' started by Black Knight, Aug 2, 2013.

  1. Black Knight

    Black Knight Active Member

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    I understand that USExpress uses Per Diem in their Pay. Is that true? If so, how does that work, what is the CPM or flat rate, or however it is accomplished? just interestes.
     
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  3. Mike

    Mike Well-Known Member Staff Member

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    I have no idea, but dont factor it into your pay. All they are truly paying you is the actual base pay.

    You already get a deduction on your taxes for each day you are out and all that per diem does is eat into that and make your taxes more complicated at the end of the year.
     
    Tim likes this.
  4. DubbleD

    DubbleD Color Commentator

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    Are you an employee?

    In a nutshell;
    Per Diem for truck drivers is the amount of deduction a driver may take daily... currently I believe it's $57 per day if you are more than 100 miles from home and is meant to offset the out of pocket expenses for room and board.

    Companies can add a portion of that amount to your weekly, bi-weekly settlements if they choose to do so.

    They are allowed to take an administrative fee from that.

    Your pay is supplemented and at the end of the tax year you can deduct the unused portion of your allotted amount from your taxes - (minus) the admin fee.

    Owner Operators/Lease Operators aren't eligible for the obvious reason.... we are paying ourselves already, Companies use it to boost your income (albeit falsely) so the company driver can survive at .21 cpm.

    I'm pretty sure a driver can opt out much the same as you can stop witholding when you've decided you have met your taxable burden for the year but don't take my word on it.... check with payroll, they should be able to supply you with the final word and forms for the option.

    I've also read that some companies will not allow the option ... again... don't know the entire legal schmuck.
     
    Last edited: Aug 2, 2013
  5. Black Knight

    Black Knight Active Member

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    Curious if anyone could tell me the CPM breakdown for the per diem. I understand the concept and other things about it. No I am not a employee, and they only hire teams up here, but I havent found anyone I can trust to drive while I sleep.
    Just curious, as the thought of per diem is intriguing for me. Not necessarily at USExpress. It could be a problem for others, but it appears that it would fit me perfectly. Although, just thinking about it at present.
     
  6. DubbleD

    DubbleD Color Commentator

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    Per Diem isn't associated with miles, it's determined by the cost of traveling as we do.

    If it makes you happy to determine the cpm of $57/day.... Then do it this way.....

    (Miles I drove today)/57.00 = (Per Diem cpm for this day)

    Example;

    720/57.00 = 12.6315789 cpm today
    540/57.00 = 9.47368421 cpm tomorrow

    The constant is $57 per day that you can't sleep or eat at home.

    If you don't take Per Diem you can keep track of those days and lower your tax liability by $57 dollars for each day you could not eat and sleep at your home.

    If you're a company driver they may front you all or a portion of your allowed Per Diem... So lets say they allot you $30 for each day you can't et and sleep at home....

    ...at the end of the year you are allowed to reduce your tax liability by an additional $27 for each day you could not eat and sleep at home ......LESS ...... THE ADMIN FEE THE COMPANY GOT FOR DISHING IT OUT TO YA.

    now I gotta headache!
     
  7. Black Knight

    Black Knight Active Member

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    I understand that you get $59 per day, but only 80% of it. As I have been finding out, those companies that do use per diem use part of your CPM as per diem. Such as one, which I shall leave nameless, uses .10 CPM, and the remainder of the CPM is not per diem. This is what I am asking for. No company, to my knowledge, gives you the $59 per day.
    It just appears that each company that uses per diem in the pay, tend to use a CPM portion of the total CPM a driver gets.
    I dont believe per diem takes into consideration lodging. I believe that this covers meals and incidentals only. Although I could be wrong. What intrigues me is the lower taxable income, and besides lower taxes also lowers my taxable income as to social security, medicare etc payments. For me that would be a good thing, where as it could be a problem for someone else.
     
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  8. DubbleD

    DubbleD Color Commentator

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    Try reading this....http://www.irs.gov/uac/Publication-1542,-Per-Diem-Rates
     
  9. Black Knight

    Black Knight Active Member

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    I have seen this before, I am not understanding what you are attempting to show me? As the rate it self is not what I seek, it is the CPM breakdown that I believe some companies use. There is another perdiem breakdown for OTR truckers as well.
     
  10. Black Knight

    Black Knight Active Member

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  11. DubbleD

    DubbleD Color Commentator

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  12. Black Knight

    Black Knight Active Member

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    First off, does US Express use per diem in their pay for drivers? Second, if so then how is it distributed. Such as is it in their milage pay CPM, or lump sum from the company. I heard that the per diem is distributed as say .10CPM of the total CPM. Such as if the total CPM is say .30 CPM, then .10CPM is untaxed, while the other .20 CPM is taxed and part of your total taxable income. Although this what I am interested in finding out, just how the company works it, and what the correct amount is.
     
  13. Mike

    Mike Well-Known Member Staff Member

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  14. Tazz

    Tazz Well-Known Member

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    OK Per Diem is just fancy speak for exempting part of your pay from Federal Taxes. You an do this yourself at the end of the year. The companies like doing it because it cuts their employer contribution of FICA taxes(SS, Medicare, and what ever the third one is).

    They do this by separating a percentage of your pay and terming it per diem. This will normally be around $.10/mile.
     
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  15. rigjockey

    rigjockey Hoser! Staff Member

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    Per Diem is not offered by my company. I deduct my per Diem expenses on my own when I file my taxes. The companies hands are out of it. I get refund every year. Granted it is a different country, With different rules. But, The idea remains the same
     
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  16. Tazz

    Tazz Well-Known Member

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    We do that down here too.
     
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  17. Duck

    Duck Quack Staff Member

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    From http://www.usxpress.com:81/support/sharepoint/USX Driver Handbook.pdf

    Section 2, page 21 (pages 23 & 24 in the PDF)


    Per Diem Pay Plan
    U.S. Xpress has long recognized that its drivers incur travel
    expenses while performing their duties for the Company. Such
    personal expenses include meals, showers, laundering and
    other necessary living expenses. The Company intends that
    the compensation paid to drivers include amounts needed for
    such necessary expenses and that the expense reimbursement
    component of the drivers’ compensation is identified as “per diem.”
    Per diems are paid in an amount that reflects the anticipated
    expenses of the drivers and are paid in accordance with guidelines
    established by the Internal Revenue Service as an “accountable
    plan.” Driving positions that require the driver to be away from
    home overnight on a regular basis may be eligible to receive per
    diem payments through U.S. Xpress. The Company, in accordance
    with IRS regulations, has established eligibility requirements
    for drivers who are interested in participating in the U.S. Xpress
    Per Diem program. Per diem payments made to drivers are not
    included in drivers’ taxable wage base and are not subject to
    employment or withholding taxes.
    Although it is the policy of the Company to identify all
    anticipated expenses as nontaxable per diem payments, the
    Company acknowledges that some of its drivers desire to
    receive expense reimbursement in the form of a taxable wage.
    For various reasons, such drivers desire to bear their own
    burdens of record keeping and tax reporting of their expenses.
    If a driver requests to be excluded from the per diem payments,
    the Company will continue to reimburse the driver for his travel
    expenses. However, the rate of reimbursement will be at a non-
    per diem rate. The non-per diem rate will be included in taxable
    wages and include a component to compensate the driver for
    the additional tax he/she will incur on the reimbursement.
    From time to time, drivers will question why the mileage
    rate reduction is greater than the per diem mileage rate. While
    it seems you will earn less under per diem, this is not true. The
    difference between these rates help the Company offset the
    additional tax cost associated with paying per diems versus
    regular wages.
    For 2007 and forward, only 80 percent of per diem payments
    can be deducted. This means that U.S. Xpress will pay a higher
    tax if it pays you one dollar in per diem than it would pay by
    paying you one dollar in regular wages. This is because if we
    pay drivers one dollar in per diem, we can only deduct 80 cents.
    Even with the net reduction in your total mileage rate, it
    is almost certain that your take-home pay will increase if you
    participate in the U.S. Xpress Per Diem Program.
    If you would like more information on the Per Diem Program
    or to determine if you are eligible to participate, please contact
    the Driver Liaison Department at
    1-800-251-6291 x 1240, 1317,
    and 1352​
    .
     
  18. Black Knight

    Black Knight Active Member

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    Mike already sent me the Drivers handbook, and I have read it. Does not answer the question as to amount, but gives a number to call.
    Was trying to get the answer through a possible driver who works for them. Guess there are none here. Guess I will have to go to the horses mouth on this one. But, thanks to all of you for trying to answer.
     
  19. dragonryder

    dragonryder New Member

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    I think the question at hand is if you are paid .35 cents per mile without per diem and take the 2 cent cut for per diem do you get .33 cents per mile plus 56 dollars a day?
     
  20. ironpony

    ironpony Well-Known Member

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    Not a chance in the world.

    The IRS qualified per diem plans allow the carrier to pay part of your compensation as per diem up to but not exceeding $59 per day. You don't get an extra chunk my friend.

    BTW, if your carrier withholds a penny or two per mile for "administrative purposes," you're getting ripped off.
     
  21. Duck

    Duck Quack Staff Member

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    You're sorta getting ripped off anyway.

    It lowers your reportable gross income, which is used in loan consideration, workman's comp claims, stuff like that.
     

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