You may be paid a per diem for meals while on the road, depending on your employer. So, what is a per diem for truck drivers?
Per diem is a tax-free compensation for meals and other incidental costs that transportation employees may incur while on duty. When you are paid per diem, your check is divided into two parts: your normal salary (taxable income) and your per diem income.
As a result, per diem is neither taxed nor included in truckers’ gross income. However, it is subject to IRS restrictions, just like any other non-taxable cost. While a trucker receives per diem compensation, for example, he is unable to claim the ‘standard meal deduction’ when filing his annual income taxes. Furthermore, whether or not per diem money is paid, most truck drivers finish up with almost the same sum after taxes.
If you’re a truck driver now or want to become one in the future, there are a few things you should know about the per diem for truckers in 2022. Continue reading to learn about the changes in the per diem for truck drivers, as well as new tax rules for truckers in 2022.
For truck drivers, what does per diem mean?
When a truck driver receives per diem income, he can reclaim some of his food expenses in each paycheck rather than deducting them and being repaid at tax time.
Since the idea is to reduce the need for truckers to list every single expense when filing their taxes, the IRS provides for a ‘standard meal and incidental expense’ deduction for individuals working in the business.
If a truck driver does not receive per diem income, he has two options when it comes to filing taxes. He has two options: keep all receipts for meals and incidental expenses and deduct 80 percent of them at tax time, or take the IRS’ standard deduction.
Per Diem is used by trucking companies for a variety of reasons
Paying per diem benefits trucking companies since it allows them to pay lower wages. The lower the salaries are t The lesser the amount of payroll taxes owed to the government. Per diem is mandated by some companies, while it is encouraged by others. As a truck driver, it’s critical that you do your research and figure out what’s best for you. Please remember that, in most circumstances, truckers make the same amount of money regardless of whether or not they receive per diem pay.
Truck Driver Per Diem in 2022
The per diem for truckers increased by $3 on October 1, 2021. For truckers within the continental U.S., this raises the daily fee from $66 to $69 per day. The rate outside the continental United States has risen to $74 per day. These per diem tariffs will remain in place until September 30th, 2022.
One of the biggest advantages of a per diem is that you are paid right away when you need it. You won’t have to worry about getting paid later if you handle your costs on the road. It’s also worth noting that receiving per diem lowers your taxable income, which might have an impact on your 401(k) contribution, unemployment benefits, and worker’s compensation, so there are perks and drawbacks.
Your eligibility for per diem may be determined by the per diem program offered by your firm. This may be dependent on the number of miles driven as well as a range of other parameters in some circumstances. If you’re thinking about taking a new job, find out about the company’s per diem program and what it takes to qualify.