Unlock Fleet Tax Savings Using Per Diem
The freight industry's landscape is evolving, and as diesel prices rise, fleet managers like you face challenges. However, here's the silver lining: optimizing your driver per diem can be a game-changer. Many fleets overlook the tax-deductible benefits of per diem, leaving money on the table.
In 2021 and 2022, Congress raised the trucker per diem deduction to 100%, making it even more enticing. But some might think that at 80% deductibility, per diem won't save much. That's where they're mistaken.
Case Study: Tax Savings
Let's break it down with a case study for a 25-truck fleet. The motor carriers realizes $71,428 or $2,857 per driver in savings. For married drivers earning $65,000 annually, the potential tax savings are around $3,457 or $0.03 cents per mile. Single over-the-road drivers in the same income bracket can save roughly $4,485, or $0.04 cents per mile. The fleet achieves
The key takeaway here is leveraging a fixed daily rate can maximize your tax offset, and it's a strategy worth considering. 💰
The Per Diem Plus Advantage
To make this process smoother, consider using the Per Diem Plus Software Platform to manage per diem effectively.
By implementing an automated, GPS-based solution, you can navigate economic uncertainties and maximize tax savings for your fleet and drivers.
Amid economic uncertainty, mastering per diem boosts fleet financial stability. Remember, it's not just about cost savings but also boosting driver pay, retention and enhancing your overall operation. 🌟
Conclusion
Optimizing your fleet's per diem management isn't just about savings; it's a powerful way to navigate economic challenges, boost driver pay, and secure your financial stability. With tools like Per Diem Plus, you can drive your fleet towards greater success in your balance sheet.
Feel free to reach out if you have more questions or need further insights into this topic. Happy driving! 🛣️
About Per Diem Plus
At Per Diem Plus, we understand the significance of efficiency when it comes to per diem tracking and payroll reporting for truck drivers and fleets. That's why we've made automation a cornerstone of our platform.
Streamlined Per Diem Tracking: With Per Diem Plus, the days of manual calculations and ELD backups are long gone. Our automated system ensures that per diem tracking is a breeze. Truck drivers can focus on the road, not record keeping. It's accuracy without the effort.
Real-Time Compliance: Our automation doesn't stop there. We keep you in compliance with the latest IRS regulations in real-time. No more worrying about keeping up with changing rules - our system does it for you.
The Power of Time: By automating per diem tracking and payroll reporting, we give you the gift of time. Time to focus on what truly matters for your business, and time to ensure your drivers are getting the reimbursements they deserve.
With Per Diem Plus, you're not just getting a tool; you're getting a solution that transforms your per diem process. Say goodbye to the tedious and hello to the efficient. Make the smart choice today and experience the difference that automation can make.
About the author
Mark W. Sullivan, EA, the founder of Sullivan Consulting, established the firm's roots in St. Louis, MO, in 1998. In 2020, he made a strategic move to the thriving business environment of Arizona. Mark specializes in the intricate realm of federal tax controversy representation, appeals, and consulting, catering not only to individuals and businesses but also extending his expertise to renowned law and accounting firms nationwide.
Mark's distinguished career includes serving as a consulting and expert witness in a multitude of civil and criminal cases, spanning several federal district courts. His credentials are underscored by an unlimited Enrolled Agents license, a testament to his exceptional knowledge and unwavering commitment to his craft. His recognition by the Internal Revenue Service for admission to practice is grounded in his extensive background as a Revenue Officer, having worked in demanding locations such as New York, NY, St. Louis, MO, and Washington, D.C.
Mark's extensive experience as a Revenue Officer has uniquely positioned him to navigate the intricate landscape of federal tax matters. Now, based in Scottsdale, AZ, Mark continues to offer his expertise to clients across the nation, ensuring that their interests are diligently and professionally represented.
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 2023 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®
