Are you trying to figure out if paying per diem to truck drivers is truly allowed by the IRS? Do you need solid proof to feel confident about using per diem?
For many truck drivers and companies, the rules about per diem can be confusing. This uncertainty makes people worry about tax issues, and it often stops them from using per diem payments. But missing out on per diem means drivers lose extra take-home pay, and companies miss out on tax savings.
In this article, we’ll show you that per diem for truck drivers is legal and explain how to use it correctly. We’ll point you to proof from the IRS, explain the rules, and help you understand how both drivers and companies can benefit from per diem.
What is Per Diem in the Trucking Industry?
Per diem, which means “by the day,” is an amount paid to truck drivers to cover expenses they have when they’re away from home overnight. These expenses include meals, personal items, and other costs you have while on the road. Lodging is not covered by Per Diem.
Per Diem Benefits for Truck Drivers and Companies: How Both Sides Profit
Per diem is a great benefit for both drivers and the companies they work for. Here’s how it helps:
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For Drivers
Per diem helps lower the amount of taxable income on paychecks. Since per diem isn’t taxed the same way regular wages are, drivers take home more money. This extra take-home pay can make a huge difference, especially given the high cost of being on the road. -
For Trucking Companies
Per diem payments lower a company’s payroll taxes. This means the company pays less to the IRS. Offering per diem also makes the company more attractive to drivers looking to maximize their earnings.
A Per Diem Program is a win-win when done right—drivers earn more, and companies save on taxes. The only catch? Per diem has to be done legally, following IRS guidelines.
Is Per Diem Legal? Key IRS Guidelines for Compliance
The good news is, yes, per diem is legal—but only if you follow the rules set by the IRS. Here’s what you need to know to stay compliant:
If you need to show evidence that per diem is legal—whether for your own confidence or to share with others—there are a few effective ways to do so. The following steps will help you access clear proof directly from IRS resources and trucking payroll experts.
How to Find Proof that Per Diem is Legal
Finding solid proof that per diem is legal is important, especially if your employer or payroll department needs convincing. Here’s how to make your case:
How to Find Proof that Per Diem is Legal
The IRS publishes guidelines for per diem rates and eligibility in documents like Revenue Procedure 2024-68. This document lays out who qualifies and at what rate, offering solid evidence of per diem legality.
Share Relevant Sections
For employers or anyone needing reassurance, print or share specific sections of IRS documents. The section on transportation industry per diem rates clearly supports its use for long-haul drivers.
Consult Payroll Experts
Services that specialize in trucking payroll can verify these guidelines. They know the ins and outs of trucking payroll tax rules. They will also be able to help companies implement per diem into their payroll the right way.
Finding proof that per diem is legal is just the first step. To continue benefiting from per diem without any compliance issues, it’s essential to stay updated on IRS regulations, as changes can impact both drivers and trucking companies.
Staying Updated on IRS Regulations
Tax laws change over time, and the IRS periodically updates per diem rates and rules for the trucking industry. Staying informed is essential for both drivers and trucking companies, as missing these updates could mean losing out on valuable benefits. By keeping up with IRS announcements, you can make sure per diem remains an advantage rather than a missed opportunity.
One of the easiest ways to stay updated is by working with a payroll service that specializes in the trucking industry. These experts monitor IRS changes and can provide timely guidance on new rules or per diem rate adjustments, so you don’t miss out on the latest benefits.
Moving Forward with Confidence in Per Diem
Per diem offers significant benefits to both truck drivers and trucking companies, from increasing driver take-home pay to lowering company payroll taxes. By following IRS rules and staying updated on rate changes, you can confidently use per diem as a valuable part of your payroll strategy.
For a deeper understanding of how per diem works and to get support with your payroll needs, visit our Per Diem website page. There, you’ll find additional resources and guidance on using per diem to your advantage.
At Superior Trucking Payroll Service, we’re here to help answer your questions about per diem and how it works, whether you decide to become a client or not. Our mission is to support trucking families just like yours and make payroll easier for everyone in the industry.
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.