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Are you letting the IRS take money that could stay in your business?
Are your drivers taking home less money than they should?
If you answered “yes” to either one, then we need to talk about per diem.
A lot of trucking companies either don’t understand how per diem works or think it’s too hard to deal with. But ignoring it can cost you—and your drivers—a lot of money.
When you don’t offer per diem, you pay more in taxes, and your drivers earn less. That sends the wrong message: that you don’t care about saving money or helping your team.
In this article, you’ll learn what per diem is, how it helps both your company and your drivers, and how to set it up the right way without making payroll harder.
What Does Per Diem Mean for Trucking Companies?
Per diem means “per day,” and in trucking, it refers to a daily allowance the IRS allows for meals and expenses when drivers are away from home. The best part? That money is not taxed.
That means:
- Drivers take home more money.
- You pay less in payroll taxes.
- Everyone wins (except the IRS).
Real Example:
Let’s say a driver is on the road 20 days a month. With the 2025 per diem rate at $80/day, that’s $1,600 a month in non-taxable pay.
The driver keeps more of their check. You save 7.65% on payroll taxes for that amount. Now multiply that by 10, 50, or even 100 drivers. The savings stack up fast.
The Real Cost of Not Offering Per Diem
Skipping per diem doesn’t just cost money—it creates real problems.
Your Drivers Take Home Less
Drivers work hard. If they find out other companies offer per diem and you don’t, they’ll feel cheated—even if your base pay is the same. That leads to higher turnover.
You Pay More in Payroll Taxes
Without per diem, every dollar you pay is taxed. That means you’re giving away thousands each year to the IRS, for no reason at all.
It Hurts Your Driver Hiring and Retention
The best drivers know what per diem is. They want it. If it’s not part of your pay package, your job ads get ignored.
Why Companies Are Still Skipping Per Diem
You might be wondering:
- “Is Per Diem Too Complicated?”
- “Does It Mess Up Payroll?”
- “Is It Really Worth It?”
Here’s the deal:
- It’s not that complicated when set up correctly.
- You can outsource it to a payroll service that knows trucking.
- The IRS allows it—you just need to follow the rules.
Most companies avoid it out of fear or misunderstanding. That ends up costing more in the long run.
How Per Diem Helps Your Business and Your Drivers
Offering per diem isn’t just a nice gesture—it’s a smart business move that brings real benefits to both your drivers and your bottom line.
Drivers Keep More of Their Pay
Since per diem is tax-free, drivers get bigger paychecks without needing a raise. That makes your pay package stand out.
You Pay Less in Payroll Taxes
For every $1,600/month in per diem, you save about $122.40 per driver. Multiply that by your fleet and you’re looking at real money.
You Keep Good Drivers Longer
Drivers notice when you’re trying to help them. Per diem shows you care about their take-home pay. That keeps them loyal.
You Attract Experienced Drivers
Offering per diem tells experienced drivers that you run a professional outfit. They’re more likely to apply and stay.
Now that you know why per diem is a win for everyone, let’s look at how to set it up the right way, without causing a payroll headache.
How to Set Up Per Diem for Your Trucking Company
Getting started with per diem isn’t as hard as you might think, especially when you know the steps and have the right support in place.
With the right setup, offering per diem becomes simple, and the payoff is well worth it. So, what’s stopping you?
Don’t Miss Out on Per Diem — A Win for You and Your Drivers
Per diem isn’t a loophole—it’s a smart, legal way to lower your payroll taxes and put more money in your drivers’ pockets. It’s one of the simplest ways to boost morale, improve retention, and protect your bottom line.
If you’ve been ignoring per diem, you’ve been paying too much in taxes and giving your drivers less than they deserve. That’s not good for business, and it’s not good for your people.
You don’t have to figure this out alone. We’ve helped dozens of trucking companies set up per diem the right way—clean, compliant, and headache-free.
We’re Superior Trucking Payroll Service, and we specialize in making payroll simple, legal, and driver-friendly for fleets like yours. Ready to stop overpaying and start doing right by your drivers?
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.