June 10, 2019

CASE STUDY - DRIVER PER DIEM SAVES FLEET THOUSANDS

PER DIEM PROGRAM SAVES MOTOR CARRIER OVER $3,000 PER DRIVER

"Partnering with Per Diem Plus provided us a turn-key solution configured to meet the needs of our fleet and offer this benefit to our drivers who love our new per diem app."
Nick A., Controller

ABOUT:

With over 400 power units the motor carrier is a leader among specialized companies serving the United States and Canada.

THE CHALLENGE:

The Controller was looking for a solution to two significant challenges impeding growth. The first involved reducing driver turnover and the second was raising driver pay in a tight labor market to improve driver recruiting.

REASONS:

    • The 2017 Tax Cuts and Jobs Act eliminated the ability of employee drivers to claim per diem as a tax deduction on their individual income tax return.
    • The absence of a company-sponsored per diem program increased driver turnover and hampered recruiting.
    • Creating IRS-compliant contemporaneous per diem records from ELD back ups is immensely time consuming.

WHAT CUSTOMER NEEDED:

    • An IRS-compliant mobile application platform solution that would allow for rapid deployment with minimal investment in dollars and/or IT resources.
    • An interface to manage individual and team drivers operating both ELD-exempt and non-exempt trucks that would be easy-to-use for non-technical users.
    • A scalable,  secure, cloud-based solution to meet the growing needs of their fleet.
    • Automated administration of a company-paid accountable per diem program.

THE PER DIEM PLUS SOLUTION:

The only IRS-compliant mobile application platform that automated administration of an accountable trucker per diem plan.

  • Fleet-branded Android & iOS mobile apps that individual and team drivers could use on their own device or install on fleet-owned devices.
  • Formatted per diem payroll reports streamlining the burdensome IRS tax compliance regulations.
  • Eliminated the need to retain over 100,000 pages annually of ELD / AOBRD backups for no less than IRS-required 3 years.
  • Superior driver support through our US-based Driver Success Team via Phone, Text and/or Email.
  • A “Never Lost” retention policy that insures fleet per diem data is instantly available for 4 years.

RESULTS:

  • The fleet is saving more than $3,000 per driver annually through reduced income and payroll taxes and workers compensation.
  • Received $125,000 refund on prior year workers compensation premiums.
  • The tax-free per diem program increased Married drivers pay by 2.8 cents per mile and Single drivers pay by 4.2 cents per mile.
  • Driver turnover is down to 15%.
  • The program launched in 21 days including tech implementation and driver training.

The carrier was able to increase driver pay AND reduce expenses through implementing their per diem program with Per Diem Plus FLEETS.

Questions? Contact Mark W. Sullivan Program Manager - Per Diem Plus FLEETS

About: Per Diem Plus FLEETS is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.

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