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The Biden administration has proposed $2.3 trillion in new taxes in its 2022 budget essentially undoing the significant tax cuts implemented by the 2017 Tax Cuts and Jobs Act. Under Biden's proposal taxes will increase for the 40% of taxpayers that paid income taxes in 2020 in roughly 96% of congressional districts. Residents of the District of Columbia, Massachusetts, Connecticut and New York will experience the largest average tax increases - $1,000 in 2022 alone. Taxpayers with kids living in Mississippi, Alabama, and Oklahoma should expect a tax cut of over $400 in 2022. However, by 2025 (after the next Presidential election) taxpaying residents of every state and the District of Columbia will see a tax increase.
Whether or not your taxes will increase depends on several factors 1) income source, self-employed or W-2 employee 2) the number of qualifying children you have, and 3) the state and congressional district you reside. Click HERE to to use the Tax Foundation interactive map to project tax changes by your state and district.
Arizona taxpayers residing in District 6 (Phoenix) on average earn $126,760 and can expect their taxes to increase $2,247.77. For comparison District 3 (Nogales) residents on average earn only $50,131 and will receive a significant tax cut of $1,407. In fact, the largest tax cuts on average per filer are in majority-Hispanic districts in California, Texas, and Arizona, with tax cuts exceeding $1,500 per filer in 2022. However, this is not a result of carve-out legislation but primarily to the expanded Child Tax Credit, Hispanic population density and predominance of the nuclear, Roman Catholic family in Hispanic culture.1
The 2017 TCJA cut taxes for the majority of Americans. Unfortunately, President Biden believes the 40% of Americans that paid income taxes in 2020 are not paying enough and has proposed $2.3 trillion in new taxes. Whether your income taxes will increase can be projected based your state of residence and congressional district.
The Per Diem Plus® is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for drivers, motor carriers and owner operators. Per Diem Plus was designed, developed and is managed in the USA.
This article was written by Mark W. Sullivan EA, Tax Counsel for Per Diem Plus, who has over a decade of experience advising trucking companies on per diem issues. Prior to starting a private practice in 1998, Mr. Sullivan was an Internal Revenue Officer with the New York, NY, Saint Louis, MO and Washington, D.C. offices of the Internal Revenue Service. Questions? Contact Mark W. Sullivan, EA.
Copyright 2021 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
Per Diem Plus® FLEETS, a mobile application platform that automates per diem tax compliance for motor carriers, today announced a new integration with Samsara. The deep link is a configurable integration that enables drivers to navigate between the Samsara ELD dashboard and Per Diem Plus FLEETS app creating an enhanced user experience.
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Per Diem Plus Announces New API Integration With Samsara
With over $40 million of per diem claimed and 5 years of reports accepted by the IRS, adding an accountable, substantiated per diem program is a sure-fire way for a motor carrier to increase driver take home pay and save money.
Consider the following:
Our cloud-based platform enables motor carriers to implement an IRS-compliant fleet per diem plan that is:
Case Study: One fleet with 85 company drivers was able to save $255,000 in the first year and increase driver pay by $0.04 per mile by leveraging FLEETS.
[1] The Special Trucker Per Diem rate is established by the Internal Revenue Service in an annual notice. See IRS Notice 20-70
Use our Fleet Per Diem Benefit Calculator to learn how much your fleet can save with Per Diem Plus Fleets.
Per Diem Plus FLEETS is a configurable mobile application enterprise platform that automates administration of an IRS-compliant accountable per diem plan for truck drivers and fleets managers. No matter how big or small your company is, Per Diem Plus has a solution for you.
Samsara is the pioneer of the Connected Operations Cloud, which allows businesses that depend on physical operations to harness IoT (Internet of Things) data to develop actionable business insights and improve their operations. Samsara operates in North America and Europe and serves more than 20,000 customers across a wide range of industries including transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, government, healthcare and education, manufacturing and food and beverage. Learn more about Samsara's mission to increase the efficiency, safety, and sustainability of the operations that power the global economy at www.samsara.com
Per Diem Plus was born over our 25 years of experience as agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming task of tax compliance for truck drivers, fleets and their accounting professionals. The Per Diem Plus® FLEETS mobile application platform enables motor carriers to implement an IRS-compliant fleet per diem program in hours that is scalable and data plan friendly. Per Diem Plus was designed, developed and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem for solo and team drivers travelling in the United States and Canada. For more information, visit www.perdiemplus.com
Copyright 2021 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Per Diem Plus® FLEETS, a mobile application platform that automates per diem tax compliance for motor carriers, today announced a new integration with Transflo. The deep link is a configurable integration that enables drivers to navigate between the Transflo Mobile dashboard and Per Diem Plus FLEETS app creating an enhanced user experience.
With over $40 million of per diem claimed and 5 years of reports accepted by the IRS, adding an accountable, substantiated per diem program is a sure-fire way for a motor carrier to increase driver take home pay and save money. Consider the following:
Our cloud-based platform enables motor carriers to implement an IRS-compliant fleet per diem plan that is:
Case Study: One fleet with 85 company drivers was able to save $255,000 in the first year and increase driver pay by $0.04 per mile by leveraging FLEETS.
[1] The Special Trucker Per Diem rate is established by the Internal Revenue Service in an annual notice. See IRS Notice 20-70
Transflo®, a Pegasus TransTech company, is a leading mobile, telematics, and business process automation provider to the transportation industry in the United States and Canada. Transflo’s mobile and cloud-based technologies deliver real-time communications to fleets, brokers, shippers, and commercial vehicle drivers, and digitize 800 million shipping documents a year, representing approximately $84 billion in freight bills. Organizations throughout the Transflo client and partner network use the solution suite and digital platforms to increase efficiency, improve cash flow, and reduce costs. Headquartered in Tampa, Florida, USA, Transflo is setting the pace for innovation in transportation software. For more information, visit www.transflo.com.
Per Diem Plus was born over our 25 years of experience as agents and tax practitioners and a relentless pursuit to introduce efficiency to the time consuming task of tax compliance for truck drivers, fleets and their accounting professionals. The Per Diem Plus® FLEETS mobile application platform enables motor carriers to implement an IRS-compliant fleet per diem program in hours that is scalable and data plan friendly. Per Diem Plus was designed, developed and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for travel in the United States and Canada for drivers, motor carriers and owner operators. For more information, visit www.perdiemplus.com
Copyright 2021 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Did you receive a Paycheck Protection Program Loan (PPP) in 2020 to keep your small trucking company from going under? Did you use the loan proceeds for qualifying purposes, like payroll costs, mortgage interest payments, rent, and utilities? The good news is your loan should be forgiven AND it will be exempt from federal taxation. The bad news is that many states do not conform to the federal tax code and will tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both. The Tax Foundation map below and (click HERE to view state-by-state table show states’ tax treatment of forgiven PPP loans.
Fortunately several states that currently tax forgiven PPP loans, including Arizona, Arkansas, Hawaii, Maine, Minnesota, New Hampshire, Virginia, and Wisconsin, bills have been introduced to prevent such taxation.
If you received a PPP loan, and with tax deadlines fast approaching, you should consult with your tax advisor to determine if you will incur a state tax liability for the forgiven loan.
The Per Diem Plus® - Owner Operators is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for drivers, motor carriers and owner operators. Per Diem Plus was designed, developed and is managed in the USA.
Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.
In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA
Copyright 2021, 2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
Yes. As a self-employed trucker you cannot do your job via a ZOOM meeting, thus you are eligible for a refundable tax credit under the Families First Act (FFCRA). You may fund the "sick leave" or "family leave" tax credit by using a portion of the 2020 estimated tax payments that were supposed to be paid quarterly. The refundable credit will be claimed on your Form 1040, U.S. Individual Income Tax Return, for the 2020 tax year.
An eligible self-employed individual is defined as an individual who,
Eligible self-employed individuals are allowed an income tax credit to offset their federal self-employment tax for any taxable year equal to their “qualified sick leave equivalent amount” or “qualified family leave equivalent amount.”
The tax credit is calculated by multiplying the number of days you could not work (maximum of 10 days) between April 1 and December 31, 2020 by either:
Average daily self-employment income is an amount equal to the net earnings from self-employment for the taxable year divided by 260. A taxpayer’s net earnings from self-employment are based on the gross income that he or she derives from the taxpayer’s trade or business minus ordinary and necessary trade or business expenses.
Which type of "leave" you qualify for depends on the reason(s) you were unable to work. Those that were prohibited from working can claim up to $511/day but those who were home to care for a family member can only claim up to $200/day.
For an eligible self-employed individual who is unable to work or telework because the individual:
the qualified sick leave equivalent amount is equal to the number of days during the taxable year that the individual cannot perform services in the applicable trade or business for one of the three above reasons, multiplied by the lesser of $511 or 100 percent of the “average daily self-employment income” of the individual for the taxable year.
Example: John was unable to drive due to state-mandated quarantine orders and the absence of loads for 8 days. He had $75,000 or an average of $288/day of self-employment income in 2020.
John can claim the lesser amount of $2,304 as refundable credit under FFCRA on his Form 1040, U.S. Individual Income Tax Return.
For an eligible self-employed individual who is unable to work or telework because the individual:
the qualified family leave equivalent amount is equal to the number of days during the taxable year that the individual cannot perform services in the applicable trade or business for one of the three above reasons, multiplied by the lesser of $200 or 67 percent of the “average daily self-employment income” of the individual for the taxable year.
Example: Mary was unable to drive for 10 days because she was home caring for her husband who had been exposed to COVID. She had $65,000 or an average of $250/day of self-employment income in 2020.
Mary can claim the lesser amount of $1,680 as refundable credit under FFCRA on his Form 1040, U.S. Individual Income Tax Return.
The refundable credits are claimed on the self-employed individual’s Form 1040, U.S. Individual Income Tax Return, tax return for the 2020 tax year. The Families First Act refundable tax credit is not surprisingly complicated, please consult with your tax advisor.
Substantiate the days you were unable to work using either of the following methods:
The Per Diem Plus® - Owner Operators is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for drivers, motor carriers and owner operators. Per Diem Plus was designed, developed and is managed in the USA.
Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.
In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA
Copyright 2020-2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
The 2021 special trucker per diem rates for taxpayers in the transportation industry remain unchanged from 2019-2020 and are $66 for any locality of travel in the continental United States (CONUS) and $71 for any locality of travel outside the continental United States (OCONUS). See section 4.04 of Rev. Proc. 2019-48 (or successor).
View Notice 2020-71 that includes the 2021 special trucker per diem rates.
Have you noticed Per Diem Plus is suddenly not tracking your trips? The likely cause is location services settings have been changed on your device after software update by Apple or Google. This is an easy issue to fix.
iPhone
Android
Are you unsure what per diem is or which drivers can claim travel-related expenses? Our tax experts answer the most common question in a prior post, Trucker Per Diem Simply Explained
PDP Small Fleets requires users to complete the account setup HERE before using the app.
Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.
In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA
Copyright 2020-2023 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
The 10% ownership - related party rule and per diem creates much confusion. Under the related party rule an Owner-Operator can claim substantiated per diem even if they are the sole owner of the trucking company. However, the related-party restriction imposed by the IRS is frequently misunderstood by both drivers and tax practitioners alike. Based on the foregoing it does not apply to the trucking industry.
Section 4.01 Per diem allowance:
Section 4.04 applies to:
Section 6.07 applies to:
Available as a $7.99 monthly subscription on Google Play and App Store.
The Per Diem Plus® - Owner Operators is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for drivers, motor carriers and owner operators. Per Diem Plus was designed, developed and is managed in the USA.
Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.
In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA
Copyright 2020-2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
For Immediate Release
ST. LOUIS, MO — In these trying times, we at Per Diem Plus realize that it can be hard to concentrate on the business of running your business. Still, for many of us—we got into this business to have a positive impact—on our own lives, our families, and our communities at large. That’s why Per Diem Plus remains committed to you and your trucking business in these difficult times and pledge to you to do the best that we can to support you and your fleet throughout this emerging situation.
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Raise Driver Take-Home Pay with Per Diem
In response to the COVID-19 outbreak, Per Diem Plus is waiving the enrollment and user fees for 3 months for trucking companies that implement a per diem program using the Per Diem Plus FLEETS trucker per diem mobile application platform. Adding an accountable, substantiated per diem program for employee drivers is a sure-fire way for a motor carrier to save money, while also raising driver take home pay. Consider the following:
Our cloud-based platform enables motor carriers to implement an IRS-compliant fleet per diem plan that will save a motor carrier money that is:
One fleet with 85 company drivers was able to save $255,000 in the first year and increase driver pay by $0.04 per mile by leveraging FLEETS.
“Everyone at Per Diem Plus is just happy to do something for the trucking companies and drivers, for without trucks America cannot recover from this event” said Donna Sullivan, CPA, CEO of Per Diem Plus.
Use our Fleet Per Diem Benefit Calculator to learn how much your fleet can save with Per Diem Plus Fleets.
Per Diem Plus FLEETS is a configurable mobile application enterprise platform that automates administration of an IRS-compliant accountable per diem plan for truck drivers and fleets managers. No matter how big or small your company is, Per Diem Plus has a solution for you.
About Per Diem Plus
The Per Diem Plus® FLEETS mobile application platform enables motor carriers to easily implement an IRS-compliant fleet trucker per diem program in hours that is scalable and data plan friendly. Per Diem Plus was designed, developed and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem and travel-related expense tracking for drivers, motor carriers and owner operators.
For more information email donnas@perdiemplus.com or visit perdiemplus.com/for-fleets
[1] The Special Trucker Per Diem rate is established by the Internal Revenue Service in an annual notice. See IRS Notice 2019-55
* Offer expires July 1, 2020. New customers only; Unlimited number of drivers. Excludes Premium Setup Fee.
Per Diem Plus® FLEETS introduces new service plan options: BASIC, WHITE LABEL and API.
Our cloud-based Per Diem Plus Fleets platform enables motor carriers to easily implement an IRS-compliant fleet per diem plan that will:
Per Diem Plus FLEETS is a configurable mobile application enterprise platform that automates administration of an IRS-compliant accountable per diem plan for truck drivers and fleets managers. No matter how big or small your company is, Per Diem Plus has a solution for you.
2021 TAX LAW UPDATE - READ ABOUT 100% DEDUCTION FOR PER DIEM
"We were able to buy three new trucks for our fleet with the savings we achieved by implementing a per diem program for our company drivers using the Per Diem Plus FLEETS platform." said Nick Adamczyk, Controller at Reliable Carriers.
Use our Fleet Per Diem Benefit Calculator to learn how much your fleet can save with Per Diem Plus Fleets.
A trucking company is required to prove 1) drivers were away from home overnight 2) identify the “date, place and amount” of each per diem event, and 3) retain substantiation through the retention of ELD backups or Per Diem Plus FLEETS platform for no less than 3 years.
The burdensome IRS compliance requirements are one reason trucking companies eschew company-paid per diem programs. Although, ELD’s automate driver hours of service compliance, the process of creating an IRS-compliant per diem record is immensely time consuming. Fleets that implement the Per Diem Plus FLEETS platform can obtain IRS-compliant fleet per diem payroll reports for a week, month or even a year in under a minute. Furthermore, per diem records are retained on the secure cloud and instantly accessible to a fleet for four (4) years.
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 for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.
Do you have questions about Per Diem Plus FLEETS? Contact Us
Copyright 2020, 2021, 2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
No per diem tax analysis would be complete without addressing the state income tax considerations on driver per diem. In our last blog post, No Driver Per Diem Yields Surprise Tax Bill, we showed you an example of a driver not receiving per diem. In this article, we will show you the negative impact of living in a high-tax state.
Johnny Mills is an over-the-road company driver
Since, Johnny elected not to enroll in the employer plan when he joined the company, he paid an extra $7,064 in federal income and payroll taxes. But how much extra state income tax did he pay? Would it make financial sense for him to move his family and transfer to one of the company's other terminals, like nearby Arizona?
No discussion on the benefits of per diem for truck drivers would be complete without considering state income taxes. State income taxes substantially impact a driver's overall income tax burden. Drivers in high-tax states like California, Connecticut or New York should consider the state tax savings of per diem. These savings are even more pronounced when compared to low-tax states like Arizona.
State Tax Savings: Enrolling in the company per diem plan would have saved Johnny $ 945 in Connecticut income tax for 2019.
State vs State Analysis: A Connecticut driver paid $4,718 of state income tax in 2019. An identical Arizona-based driver paid only $2,199 - a $2,519 difference.
The real value of a dollar (purchasing value) must be taken into consideration in order to make state-to-state comparisons. For example, $1.00 is only worth $0.92 cents in Connecticut but $1.04 in Arizona - a 11.5% difference.
No per diem tax analysis would be complete without addressing the state income tax considerations on driver per diem. Johnny Mills received an unpleasant surprise this tax season because he did not participate in his employer offered per diem plan - an additional $7,064 of federal and $ 945 in state income taxes. Living in high-cost, high-tax Connecticut further reduced the value of his earnings by over $11,136. However, if Johnny enrolls in the company per diem plan and moves his family to a low-cost, low-tax state like Arizona it would generate about $16,198 in real dollar value.
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 for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.
This article was written by Mark W. Sullivan EA, Tax Counsel for Per Diem Plus, who has over a decade of experience advising trucking companies on per diem issues. Prior to starting a private practice in 1998, Mr. Sullivan was an Internal Revenue Officer with the New York, NY, Saint Louis, MO and Washington, D.C. offices of the Internal Revenue Service. Questions? Contact Mark W. Sullivan, EA.
Copyright 2020 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.
Reference:
https://taxfoundation.org/real-value-100-state-2019/
https://taxfoundation.org/state-individual-income-tax-rates-and-brackets-for-2020/
