Trucking’s #1 Money-Saving Strategy: Per Diem

Q: Is per diem legal and IRS-approved?

Yes—when handled correctly through payroll, per diem is legal and IRS-approved. This guide explains how to do it the right way.

Q: Do I need to be a Superior Trucking Payroll client to use this guide?

No. The guide is free for anyone in the trucking industry, even if you handle payroll in-house or use another provider.

Q: Is there a tool to see how much I could save?

Yes. You can use the free Per Diem Savings Calculator to estimate how much your company could save.

We Have Answers about Per Diem

No Sales Pressure

Just honest information to help you make the right call.

We know per diem can be confusing – but it doesn’t have to be. This Per Diem Guide explains exactly what per diem is, how it works in trucking, and how it can save you thousands in payroll taxes – without increasing driver pay.

You’ll get clear, honest answers from payroll experts who work only with trucking companies and understand the rules inside and out.

What you’ll get:

Stop Leaving Money on the Table. Per Diem saves $2,500 per truck per year.

More savings, more retention, less tax liability.

If you’re not using per diem, you’re overpaying in taxes to the IRS and overpaying workers’ comp premiums.

Truck drivers take home more pay with per diem.

Trucking Companies save $2,500 per truck per year by lowering payroll taxes and reducing worker’s comp costs.

Have Questions?

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How One Trucking Company Saved Big with Per Diem

How Per Diem Could Save a Trucking Company $63,250 a Year

Big Wheels Transport is a fictional company used to illustrate potential savings.

Suppose a trucking company implements a qualifying per diem program that reduces annual taxable wages by $500,000. Assuming that entire amount would otherwise be subject to employer Social Security and Medicare taxes at 7.65%, the company could save $38,250 in employer payroll taxes.

If its workers’ compensation policy also recognizes that reduction, assume an additional $25,000 in premium savings.

Total illustrative annual savings: $63,250.

Actual savings depend on eligible driver days, wages, participation, and the company’s workers’ compensation policy.

That’s money they reinvested in their business and drivers.

What to see how much you could save?

Could Per Diem Saving Cover Your Payroll Costs? – Take the Quiz Now

Simplifying Per Diem with Superior Trucking Payroll Service

At Superior Trucking Payroll Service, we offer flexible, IRS-compliant Per Diem solutions that reduce taxes, cut costs, and boost driver pay.

Why We Recommend Day-Based Per Diem

Trucking companies may calculate per diem using a daily amount, a per-mile amount, or a percentage of pay. The calculation method alone does not establish IRS compliance. Eligibility, documentation, and applicable limits still matter.

At Superior Trucking Payroll Service, we recommend calculating per diem by eligible travel day. This ties the payment directly to the days that qualify and makes the calculation easier to explain, document, and review.

Per-mile and percentage methods require additional attention to ensure payments align with eligible days and applicable limits.

Each method offers flexibility, but IRS compliance is key to avoiding tax issues for both your company and drivers

Let us help you structure a legally sound and profitable Per Diem program.

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Per Diem FAQs

Is there a tool to see how much I could save?

Yes. You have access to our free Per Diem Savings Calculator to estimate how much your company could save — even if you only have a handful of drivers.

What is the current IRS per diem rate for drivers?

As of now, the IRS allows $80 per day for the transportation industry.

Is per diem legal and IRS-approved?

Yes. When handled correctly through payroll, per diem is 100 % legal and approved by the IRS. This guide walks you through how to do it the right way.

How can offering per diem benefit our company financially?

Offering per diem pay can reduce your company’s payroll tax liability because the non-taxable portion of the pay isn’t subject to employer-paid taxes like FICA and FUTA. Over time, this can lead to significant savings while increasing driver take-hom pay.

How do we track days eligible for per diem?

You’ll need a reliable system for tracking each day a driver is away from home overnight. Many companies use ELD data, dispatch logs, or driver trip sheets to document this.

How do we know if our per diem plan is IRS-compliant – and not overpaying?

Compliance depends on driver eligibility, documentation of qualifying travel days, and payments within applicable IRS limits.
We recommend calculating per diem by eligible day because it makes payments easier to track and verify. Per-mile and percentage methods are not automatically noncompliant, but they require additional review to ensure payments match qualifying days and applicable limits.
The key is a documented process that helps you maximize eligible per diem without overpaying.

Do I need to be a Superior Trucking Payroll client to use this guide?

Nope. The guide is free for anyone in the trucking industry — whether you handle payroll in-house or work with another provider. But if you need help, we’re here.