STPS

Do I Qualify for Per Diem?

You may be qualified for per diem payments as part of your income as a truck driver. To figure out if you qualify for per diem payments, you must consider a few factors. These include your tax situation, your employer’s per diem policy, and the length of time you are away from home.

What is Per Diem?

The word “per diem,” which comes from the Latin for “per day,” is a reimbursement paid to an employee to cover their expenses while they are away from home on business. Per diem is frequently used in the trucking world to reimburse drivers for their travel-related meals and incidentals. 

What factors do you need to have to qualify?

Employee’s per diem policy:

Let’s start by reviewing your employer’s per diem policy. While some trucking businesses include per diem as a regular component of their payroll, others do not. You need to learn about your employer’s per diem policy and daily pay rate if they do offer it.

Per diem reimbursments are often provided for each day the driver is on the road. This is meant to cover the cost of your food, and any other incidentals you may have while you are away from home. Some businesses may provide a flat daily rate, while others may give a percentage of the gross wage.

Tax status:

You must then think about your tax situation. Per diem payments are typically regarded as non-taxable income, which exempts them from tax withholding. You must, however, meet certain requirements in order to be eligible for this tax treatment.

Per Diem payments must only be made to employees who are over the road and away from home over night, according to rules imposed by the Internal Revenue Service (IRS). In other words, you might not be eligible for per diem payments if you’re a truck driver who able to get back to his/her home each night (local driver).

You must also maintain thorough records of your expenses and be able to prove that you were away from home for the reimbursed amount of time. You might have to do this by keeping a logbook or other records of your travels.

Per Diem rate:

The IRS has established a standard rate allowed for Per diem reimbursements. The standard per diem allowance, for instance, is $69 per day.

Bottom Line:

In conclusion, if you are a truck driver, you might be qualified for per diem compensation. You must take into account your employer’s per diem policy, your tax situation, and the amount of time you spend away from home to evaluate your eligibility. If you are eligible, per diem might be a useful source of money that will aid in paying your bills while you are traveling. To ensure that you are receiving the proper amount, just be sure to keep precise records and stay current on the most recent regulations.

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Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone. 

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