Running a trucking company in today’s economy has never been more challenging. Keeping your business profitable can be an uphill battle between skyrocketing fuel prices, driver shortages, and increasing regulations. On top of that, managing payroll and finding ways to reduce your tax liability is a constant challenge.
But there’s some good news: the IRS has announced a significant increase in the per diem rate for truck drivers, which can help reduce costs, increase savings for your company, and put more money in your driver’s pockets.
At Superior Trucking Payroll Service, we are the only U.S.-based payroll provider that focuses exclusively on trucking companies. We know your unique challenges, and we specialize in per diem programs that lower your tax burden.
In this article, we’ll explain how the new per diem rate can benefit your business and what you need to do to start saving today.
IRS Raises Per Diem Rate to $80 for Truck Drivers
The new per diem rate, outlined in IRS Revenue Procedure 2024-68, will rise to $80 per day for truck drivers on October 1, 2024. This is the first increase in the per diem rate since 2021. For trucking companies that use a per diem program, this update helps lower their tax liability because per diem is a non-taxable part of the driver’s wage.
How the New Per Diem Rate Lowers Tax Liability for Trucking Companies
The increase from $69 to $80 per day means trucking companies can save even more when using a per diem program through their payroll. A per diem program will reduce your drivers’ taxable wages. Payroll taxes are figured on the taxable wage only.
- At the old rate of $69, companies saved about $1,500 per driver each year.
- The new $80 rate could increase the savings to around $1,739 per driver.
This makes a big difference. Trucking companies will have a larger cash flow for operational costs, and truck drivers will see an increase in their take-home pay.
History of IRS Per Diem Rate Changes for Trucking
The IRS last increased the per diem rate from $66 to $69 in 2021. Before that, the rate had stayed the same for several years. In 2020 and 2019, truck drivers received 80% of $66 per day. The IRS raises per diem rates to keep up with rising costs.
What Should Trucking Companies Do About the New Per Diem Rate?
Now that the IRS has increased the per diem rate, it’s important for all trucking companies to act quickly to take full advantage of the new savings. Whether you’re already working with Superior Trucking Payroll Service or considering it, there are simple steps to make sure you’re set up for success.
For Current Clients of Superior Trucking Payroll Service
If you’re already a client, transitioning to the new $80 per diem rate is easy. Let our processing team know if you want to start paying your drivers at the updated rate. Look for an email from us with all the details you need. And we’ll take care of the rest for you.
For Trucking Companies Not Yet Using Superior Trucking Payroll Service
If you’re not yet a client? Ready to save $1,739 per driver? Contact us today to get started with the updated IRS per diem rate. As the only U.S.-based payroll provider focused entirely on trucking companies, we make sure your per diem payments are correctly handled so you reduce your tax liability and save thousands each year.
Learn More About Per Diem and Start Saving
The new IRS per diem rate is great news for trucking companies. Increasing the rate from $69 to $80 is a big deal and so exciting. The updated rate can save you over $1,700 per driver yearly. Don’t wait, act now to take advantage of the increased per diem rate and save thousands for your trucking company.
If you are a current client, contact your payroll processor to switch to the new rate.
Not a client yet? Want to learn more? Visit our Per Diem Page to learn more about how we can help you save money and reduce your tax burden.
Written by Mike Ritzema
Before founding Superior Trucking Payroll Service, Mike was the CFO of a trucking company with 80 trucks and a thriving brokerage. This experience gave him the perspective that a payroll solution has to make the lives of the office people better. All the solutions he has designed are to benefit everyone. Our company mission is to help trucking families and that includes the company owners, the drivers, and the office.