STPS

How Do I Find Proof That Per Diem is Legal?

Per diem payments are commonly utilized in the trucking industry to provide drivers with allowances for daily expenses incurred while on the road. However, ensuring the legality of per diem practices is crucial for trucking companies. In this article, we will explore effective ways for trucking businesses to find proof that per diem payments are legal, providing confidence in compliance with tax regulations.

Quick refresher on per diem:

This normally consists of a meal allowance and incidental expenses. Incidental expenses include; laundry, meals, personal hygiene items, etc. This also might include lodging depending on the season, time frame, and location. This gives truck drivers more take-home pay because fewer taxes are taken out. If you are a truck driver, or are thinking of becoming a truck driver, you should know more about per diem and how it works.

Is per diem legal?

As long as you follow the IRS rules on per diem then it is definitely legal! The rate of per diem at this time is $69 per day allowance. The IRS also has rules on how you pay it out to your drivers. We have those rules outlined here. 

Tax laws and regulations within the trucking industry may have specific provisions that impact per diem payments. It is crucial to stay updated with the latest developments in trucking-specific tax laws.  The link to the IRS revenue procedure 2023-68 is below.

Click here for the IRS Rev Proc!

Ensuring the legality of per diem payments is crucial for trucking companies utilizing this practice. By researching IRS guidelines specific to the industry, and staying informed about trucking-specific tax laws, trucking companies can find the necessary proof that per diem payments are legal. This knowledge and supporting evidence provide confidence in compliance with tax regulations and promote the smooth operation of per diem practices within the trucking industry.

If you have any more questions about per diem, you can contact us or read more about it in our other article below.

Written by Mike Ritzema

Before founding Superior Trucking Payroll Service, Mike was the CFO of a trucking company with 80 trucks and a thriving brokerage. This experience gave him the perspective that a payroll solution has to make the lives of the office people better.  All the solutions he has designed are to benefit everyone.  Our company mission is to help trucking families and that includes the company owners, the drivers, and the office.

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