STPS

Per Diem Pay: How to Save Money

Save Money by Paying Per Diem

You may be thinking, ‘how can I save money by paying per diem?’. And before we dive in to how per diem can benefit your trucking company, let’s review what it actually is. 

per diem pay, save money

Per Diem (Latin for ‘per day’ or ‘for each day’) or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when traveling on the employer’s business. A per diem payment can cover part or all of the expenses incurred. 

How Does Paying Per Diem Save Me Money?

Paying per diem as a substitute for wage puts more money in the driver’s paycheck, which helps with recruiting quality drivers, as well as retaining those drivers. If you want to read more about the other ways you can recruit and retain more drivers, check out our article here. 

If we offset the reduced FICA match against the fact that per diem is only 80% deductible for income taxes*, then where is the money
 
It is in workers’ compensation premium reduction.  Generally, per diem paid to the IRS limit of $69 per day is not subject to workers’ compensation.  Check with your insurance agent to be sure. 
 
But how much will I save?  We can show you by using this per diem calculator. 
 
We assume your driver is out 5 days per week and 52 weeks a year.  Yes, drivers take time off but they are also often out more than 5 days. 
 
To see the IRS publication on per diem click here, (page two) which refers to Per diem starting on the last line of page ten.
[CP_CALCULATED_FIELDS id=”6″]

Do you want to save that kind of money each year? 

Please call us at 616-608-1800 or use the contact us page to reach out and learn more about per diem and trucking payroll.

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Do you want to save even more money for your trucking company this year?

We have a partnership with Ascend TMS and they are offering a three-month FREE trial of their paid services. 

With Ascend TMS you can manage every aspect of your trucking and logistics operations with the same TMS technology used by the world’s largest trucking companies. Ascend TMS gives you and your entire team complete control over your daily freight movements, including load posting and load searching, driver pre-planning, dispatch, driver tracking, ELD integration, driver texting, document management, accounting, reporting, factoring, asset management, driver pay, IFTA reporting, driver qualification, and so much more. 

meet the team, gentry dewinter, account manager, superior trucking payroll service

Written & Edited by Gentry DeWinter

Gentry graduated from Grand Valley with a Bachelor’s Degree in multi-media journalism. She is an artist who loves videography, writing, and hopes to one day own multiple dogs.