Are you a truck driver trying to figure out if you qualify for per diem? Or are you a trucking company uncertain if your drivers qualify for per diem. You could be missing out on crucial tax benefits and your drivers missing out on extra take-home pay.
Per diem payments help drivers cover on-the-road expenses while putting more money in their pockets. A per diem program also helps lower tax liability for trucking companies, creating a win-win situation for both drivers and companiesy.
This article will explain what per diem is, eligibility factors, and how to make the most of this tax-saving benefit.
*** article updated 11/11/2024 ***
What Is Per Diem for Truck Drivers?
Per diem is a daily allowance that covers meals and small expenses when you’re on the road overnight. The words “per diem” mean “per day” in Latin, and in trucking, this allowance helps drivers handle the costs of food and other incidentals that come with life on the road.
Understanding Your Company’s Per Diem Pay Policy
Before assuming per diem is part of your pay, it’s important to check with your employer. Some trucking companies offer per diem as part of their pay structure, while others may not.
Ask your employer if they offer per diem and find out how they calculate it—whether as a flat daily rate or a percentage of your gross pay.
For companies, offering a per diem program can lower payroll taxes and increase drivers’ take-home pay, creating a win-win situation. Understanding how a per diem program works will help trucking companies set clear expectations with their drivers. It also ensures that the company’s per diem practices align with IRS guidelines, reducing tax liabilities and simplifying payroll compliance.
Current Per Diem Rate for Truck Drivers
The IRS sets a standard rate for per diem, which is currently $80 per day. This amount covers meals and incidental expenses while drivers are on the road. It’s important to check that your employer is using the current rate to ensure you’re getting the correct amount. Companies should also stay updated on any changes in the IRS rate to make sure payroll calculations are accurate.
Per Diem Eligibility Requirements for Truck Drivers
To determine if you or your drivers qualify for per diem, it’s essential to understand a few important factors. Here’s what you need to know:
Per Diem Eligibility Requirements for Truck Drivers
For drivers to qualify for per diem, the IRS requires that they are considered “over-the-road” or away from home overnight due to work. This means that if a driver returns home each night, they won’t qualify for per diem under IRS guidelines. However, for drivers spending nights away from home, per diem can be a valuable benefit.
Per Diem Eligibility Requirements for Truck Drivers
Keeping accurate records is essential for both drivers and companies when it comes to per diem. Drivers need to document each trip, noting when they leave home and when they return, which can be done through logbooks or other travel records. These records not only help drivers prove their time away if needed but also help companies track and calculate the correct per diem amounts to include in payroll. For companies, having precise records ensures compliance and makes payroll processing easier.
How Truck Drivers and Companies Can Benefit from Per Diem
Qualifying for per diem can make a real difference in the lives of truck drivers and the companies that employ them. By understanding the per diem rate and the qualifying factors, drivers can keep more of their pay in their pocket, and companies can reduce payroll tax liability. Remember, for drivers, it’s crucial to check with your employer about their per diem program and keep accurate records of your trips. For companies, offering a per diem program can reduce tax liabilities and increase drivers’ satisfaction.
If you’re a driver, your next step is to talk with your employer about whether they offer per diem and make sure you understand how it applies to you. For companies, reviewing your per diem options can lead to savings and ensure that your payroll practices are compliant and beneficial for your drivers.
Superior Trucking Payroll Service understands the ins and outs of per diem and payroll, and we’re here to make these processes easier for you. Take the next step in maximizing per diem benefits by visiting our dedicated page on our website, where you’ll find a range of resources—from in-depth articles to informative webinars—all aimed at helping trucking companies understand and maximize per diem benefits. If you have questions or need guidance, don’t hesitate to reach out; whether by phone or message, our team is here to support you every step of the way.
Written by Melisa Bush
With over 15 years of experience in the trucking industry, Melisa is well-versed in the complexities of trucking payroll and adept at navigating special circumstances. Before joining Superior Trucking Payroll Service, Melisa worked at a trucking company, where she managed driver miles and expenses for a fleet of 50 trucks. This hands-on experience gives her unique insight into the challenges our clients face when preparing their payroll data.
Melisa’s top priority is customer service. She strives to treat each client as an individual with genuine needs, rather than just another number in the system. Her goal is to alleviate the burdens of our clients and make their daily operations smoother.