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September 10, 2020

Raise Driver Pay With Per Diem

Mark Sullivan- Per Diem Plus
Mark W. Sullivan, EA
Mark is our transportation industry expert and has over a decade of experience advising clients on IRS accountable per diem programs. 

Raise Truck Driver Pay

A company-sponsored per diem plan will save a fleet money and increase driver take-home pay by several cents per mile.

Truckers designed it, tax pros built it, your drivers want it. Our cloud-based FLEETS mobile app platform with flexible Service Plan Options enables motor carriers to easily implement an IRS-compliant fleet per diem plan that will:

  • Enhance recruiting and retention
  • Raise driver pay by the equivalent of several cents-per-mile
  • Save a fleet several thousand dollars per driver
  • Eliminate the need to retain ELD backups for 3 years

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:

  • The typical over-the-road (OTR) driver averages 127,500 miles annually and is away from home 280 nights a year
  • A driver would receive $18,480 of tax-free per diem at $66/day[1]
  • Substantiated per diem can be earned during U.S. Department of Transportation Hours of Service-mandated 34-hour restarts and unforeseen delays like detention, breakdowns, or weather
  • The average driver will save thousands of dollars in federal and state income and payroll taxes, equivalent to several cents per mile

For example, a married driver from South Carolina receiving per diem would save $5,123 in federal and state taxes equal to an extra 4.4 cents per mile.

A single driver from Missouri receiving per diem would save $5,638 in federal and state taxes equal to an extra 4.6 cents per mile. State income tax rates can materially impact the overall benefit of per diem as was discussed in our post State Income Tax Considerations of Driver Per Diem



About Per Diem Plus FLEETS

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


Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2020 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

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