Some carriers offer company drivers a "per diem" program. Part of your pay is labeled as a meal and incidentals allowance and is not taxed. It sounds like a raise. Sometimes it is.
How it works
- For each day you are away from home overnight, part of your pay is paid as per diem instead of wages.
- That part is usually not taxed, so your weekly check is bigger.
- The carrier sets the daily amount, up to the federal per diem rate for transportation workers set by the IRS each year.
The catch
- Lower taxable wages can mean lower Social Security credits and, for some people, lower unemployment or loan-qualifying income.
- Some carriers lower your cents per mile to offset the per diem. Ask whether your gross pay changes.
- Per diem only applies to days you are away overnight. Local drivers usually do not qualify.
Questions to ask
- Is per diem optional, and can I opt in or out each year?
- Does my rate per mile change if I take it?
- How much per day, and how are partial days counted?
We are not tax advisors. Talk to a tax professional about your situation.
Want a recruiter who answers these questions before you ask?
Tell us 4 things and we match you with CDL-A jobs you can actually get. Free for drivers.
