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Per Diem

Transportation Webinar: KSM and Scopelitis to Discuss Per Diem Plan Tax Benefits and Staying Compliant

Posted 8:45 PM by
In the aftermath of tax reform, which impacted company drivers by eliminating the personal income tax deduction for out-of-pocket business expenses, more carriers are considering implementing per diem plans to help offset this change. By recognizing the portion of driver pay that encompasses these expenses, per diem plans can provide clear payroll and income tax savings, and in many cases provide drivers with more after-tax pay than under the previous deduction model. However, it is important to be aware of the IRS’s accountable plan rules in order to remain compliant and not jeopardize potential savings.
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How a Per Diem Program Can Help Drivers and Carriers Save in Taxes

Posted 1:00 PM by
The Tax Reform and Jobs Act (TCJA) was the most comprehensive overhaul of the tax code in our lifetime, if not ever. We are just weeks away from the first tax filing deadline for returns that are fully impacted by these law changes. One change that could drastically impact truck drivers is the inability to deduct unreimbursed business expenses. As a result of this adjustment, many carriers have implemented per diem programs as a way to get tax free dollars to drivers. Conversely, companies that have not instituted per diem programs might have disappointed drivers as we get closer to the tax filing deadline, and drivers realize that this deduction is a thing of the past.
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IRS Updates Transportation Industry Per Diem Rates

Posted 12:00 PM by
The Internal Revenue Service issued Notice 2018-77, updating the special per diem rates under tax code Section 274(d), which is used to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home.
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