Episode 133 Show Notes
Episode 133 Show Notes
CRAZY WEATHER ACROSS THE COUNTRY
Be careful out there everyone, be smart, no loads worth your life. Think ahead and plan ahead. Your the captain of that ship and your the one that says if leaves or not. Not the dispatcher that sits behind the desk and looks out his or her window and says, oh it don’t look that bad out! You can make it there. Don’t fall for that bullshit, do what you feel safe doing and don’t be a idiot! Its not just your life but its the others out there with you and trust me some of them should of stayed home too! Please be safe and think first!
🚛 What Per Diem Means in Trucking
Per diem is a daily allowance meant to cover a driver’s meals and incidental expenses while they’re away from home on the job. The term literally means “per day.”
🧾 How It Works with Trucking Companies
✅ 1. For Company (W-2) Drivers
If you’re employed by a trucking company (W-2 employee):
You don’t get a tax deduction yourself.
Due to current IRS rules (Tax Cuts and Jobs Act), company truck drivers can’t claim per diem on their taxes anymore — so the only way you benefit is through your employer’s per diem program.
Here’s how companies implement it:
💡 Employer sets up a per diem program:
- The company chooses to allocate part of your pay as non-taxable per diem instead of taxable wages.
- This portion is to cover meals & incidental travel costs when you’re traveling away from home for work.
- It reduces your taxable income (so less tax is withheld each paycheck, putting more net pay into your pocket).
What qualifies?
- You must be away from your tax home overnight (working a route that keeps you on the road).
- Typically need to be 50+ miles from home and on a qualifying trip.
Amount:
- The IRS sets a maximum per diem rate. For example, IRS 2025 rates are about $80/day for the continental U.S. (may be more for Alaska/Hawaii) — those amounts are non-taxable reimbursements when paid correctly.
Important:
- Per diem isn’t extra money on top of your base pay — it reclassifies part of your pay to make it non-taxable.
- It lowers your taxable income but also lowers reported wages for things like Social Security, retirement credits, or loan income verification.
How you get paid:
Trucking companies handle this differently — common methods include:
- Daily flat per diem amounts
- Cents-per-mile that includes per diem portion
- Weekly summaries based on logs/trips
…depending on how the company runs payroll.
You often have to opt-in to the program during onboarding.
📊 2. For Owner-Operators (1099 / Independent Contractors)
If you’re self-employed or an owner-operator (not a W-2 employee):
You can use per diem on your tax return.
- You track the days you’re on the road.
- The IRS lets you deduct a standard daily per diem amount (e.g., 80% of the published rate) as a business expense — reducing taxable income.
- You must keep records (dates, locations, logs) to support it.
🧠 Key Points to Understand
📍 Per diem is not free money
It’s a tax benefit — your company classifies part of your earnings as reimbursement for meals so you pay less in taxes.
🧮 It affects your tax reporting
Since per diem is non-taxable (when handled properly), it lowers gross taxable wages on your W-2 — which can affect things like:
- Social Security credits
- Income for loans/mortgages
…even though you keep more money in your pocket weekly.
📅 You must qualify
Drivers usually must be:
- Away overnight
- Traveling for work and not local day-trips
- Following IRS substantiation rules (most companies handle this for you via logs)
📝 Example
Let’s say in a week:
- You were on the road 5 full days
- The IRS allows $80/day per diem
Your employer could:
- Classify 5 × $80 = $400 as non-taxable per diem
- Only tax your remaining wages
That means less tax withheld each week — more money in your take-home pay.
🧾 Summary
| Aspect | Company Driver (W-2) | Owner-Operator (1099) |
|---|---|---|
| Claim on taxes yourself | ❌ | ✔️ |
| Benefit from per diem | ✔️ (via employer program) | ✔️ (deduction) |
| Tax-free portion | Yes (when employer pays correctly) | Deduction from income |
| Requires tracking | Usually employer manages | You track logs/records |
# If a trucking company pays a driver 40 a day perdium, and he gone 5 days. the company gives him a seperate perdium check 200 dollars besides his normal pay, is this right?
Short answer: yes — that can be right, if the company is running a proper per diem program 👍
But there are a couple important details to understand so you know it’s legit and not shady.
Your example, broken down
- Per diem rate: $40 per day
- Days gone: 5 days
- Per diem total: $40 × 5 = $200
👉 Paying $200 in per diem for that trip is correct.
Separate per diem check — is that normal?
Yes. Very normal.
Trucking companies usually handle per diem in one of two ways:
✅ Option 1: Separate perdiem check (what you described)
- Regular paycheck = taxable wages
- Separate check (or line item) = non-taxable perdiem
- The perdiem check has no federal/state tax, Social Security, or Medicare withheld
This is actually one of the cleanest ways to do it and is very common in trucking.
✅ Option 2: One check, two line items
- Same result, just shown on one pay stub
- One line labeled “Wages”
- One line labeled “Per Diem (Non-Taxable)”
What makes it legit (important)
The setup you described is correct IF all of this is true:
- ✅ The driver was away from home overnight
- ✅ The per diem is for meals & incidentals
- ✅ The per diem amount is reasonable (IRS allows up to much more than $40/day)
- ✅ The company is not reducing pay below minimum or promised CPM to fund it
If those boxes are checked, then:
👉 The $200 per diem is not taxable
👉 It does not show as wages on the W-2
👉 The driver keeps the full $200
One thing to watch out for ⚠️
Ask this question (very important):
“Did they reduce my cents-per-mile or base pay to create the per diem?”
Per diem is often not extra money — it’s usually part of the pay reclassified to save taxes. That’s legal, but the driver should know.
Also note:
- Lower taxable wages = slightly lower Social Security earnings
- Can matter for loans, mortgages, and retirement
Bottom line
✔️ Yes, paying $200 as a separate per diem check for 5 days at $40/day is correct and normal.
✔️ It’s a common trucking payroll practice.
⚠️ Just make sure it’s properly documented and not quietly cutting promised pay.
If you want, tell me:
- Company driver or owner-op?
- Paid CPM or salary?
- Is per diem optional?
I can sanity-check the whole pay structure for you.
its hourly pay with no reduction for the perdium, its on top of normal hourly pay and if the company only pays 40 and can claim 80 ,where does that go?
Great question — this is where per diem gets confusing, and you’re thinking about it the right way.
Short answer first:
If the company pays $40/day and the IRS allows up to $80/day, the extra $40 does NOT go anywhere.
No one “keeps” it. It just isn’t used.
Let’s clear it up cleanly
1️⃣ Per diem is a maximum, not a requirement
The IRS sets a maximum allowable non-taxable amount (say $80/day).
- Company pays $40/day → ✅ $40 is non-taxable
- Remaining $40 → ❌ not paid, not claimed, not pocketed
There is no credit, refund, or leftover amount for:
- the driver
- the company
- payroll
- taxes
It simply disappears into the void 🫥
2️⃣ Since this is hourly pay with NO reduction
This is actually a very clean and driver-friendly setup:
- Hourly wages = fully taxable, unchanged
- Per diem = true reimbursement, paid on top
- That means the per diem is not a pay reclassification
That’s 100% legitimate and IRS-safe as long as:
- You’re away from home overnight
- The per diem is for meals/incidentals
- The company tracks days (logs, dispatch records)
This is better than most trucking per diem setups, honestly.
3️⃣ Why doesn’t the driver get the other $40?
Because:
- W-2 drivers cannot claim per diem deductions themselves anymore
- Only the employer can pay it tax-free
- And the employer is only choosing to pay $40, not $80
The IRS rule is basically:
“We’ll allow up to $80/day to be paid tax-free — but only if the employer actually pays it.”
No pay = no benefit.
4️⃣ Can the company keep or deduct the extra $40?
No.
They:
- Can’t claim it as an expense
- Can’t write it off
- Can’t pocket it
- Can’t roll it into anything else
Only paid per diem counts.
5️⃣ Simple example
- 5 days away
- IRS max: $80/day
- Company pays: $40/day
Result:
- Driver gets: $200 tax-free
- Unused allowance: $200 → gone
- No one claims it
Bottom line (plain English)
- ✔️ Your setup is legit
- ✔️ Per diem is truly “on top” of hourly pay
- ✔️ The company is just being conservative
- ❌ There is no missing money
- ❌ No one gets the unused amount
If you want, I can also explain why some companies deliberately pay less than the IRS max (there are a few strategic reasons), or compare this to CPM-based per diem setups.
do you need reciepts to prove the money is for meals and expenses
Good question — and this one has a very clear answer.
Short answer:
No, receipts are NOT required for per diem meals & incidental expenses in trucking — if it’s done correctly.
Why receipts aren’t required
The whole point of per diem is that it’s a standard allowance instead of tracking every sandwich and coffee ☕🥪.
Under IRS rules:
- Per diem replaces meal receipts
- You do not have to prove what you actually spent
- You just have to prove you qualified for the per diem day
What does need to be documented (this matters)
Even without receipts, the company (or driver) must be able to show:
✅ 1. You were away from your tax home overnight
This is the big one.
✅ 2. The dates you were gone
- Trip start/end
- Full days vs partial days (company policy)
✅ 3. The location or route
Usually handled automatically via:
- ELD logs
- Dispatch records
- Trip sheets
If those exist, that’s enough.
When receipts are required ❗
Receipts are required for:
- Lodging (hotels)
- Fuel
- Repairs
- Other reimbursed expenses (not meals)
But not for per diem meals & incidentals.
For your specific setup (hourly + per diem on top)
Since:
- It’s hourly pay
- Per diem is paid separately
- No wage reduction
- $40/day (well below IRS max)
This is considered a low-risk, accountable plan setup.
That means:
- No receipts
- No tax on the per diem
- Clean payroll treatment
One thing to double-check (small but important)
Ask or look at the paystub to confirm:
- Per diem is labeled “Per Diem – Non-Taxable”
- It is not included in gross wages
- No taxes are withheld from it
If yes → you’re golden.
Bottom line
✔️ No meal receipts needed
✔️ Logs / trip records are enough
✔️ You don’t have to justify what you ate
✔️ The company just has to prove you were eligible
If you want, I can also explain partial days, first/last day rules, or what happens if the IRS audits a per diem program (and what they actually look for).
