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Per Diem Plus Fleets

Per Diem Plus® FLEETS is a configurable mobile application platform that automates administration of an IRS-compliant accountable trucker per diem plan for fleets managers. No matter how big or small your company is, Per Diem Plus has a solution for you.

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

  • Enhance recruiting and retention
  • Raise employee driver take-home pay
  • Save a motor carrier with reduced employment taxes and worker compensation premiums
  • Streamline tax compliance
  • Eliminate the need to retain ELD backups for 3 years

"Partnering with Per Diem Plus provided Reliable Carriers a turn-key solution configured to meet the needs of  our fleet and offer this benefit to our drivers” 

Nick Adamczyk, Controller
Reliable Carriers, Inc.

Per Diem Plus Fleets API

Implementing Per Diem Plus is easy

Implementing Per Diem Plus FLEETS is a breeze and does not require specially trained professional installers like telematics solutions.

  • Drivers can download the app onto their personal device from Google Play or App Store.
  • Our available Android Package (APK) enables a fleet to install the app using the most common master distribution methods, like MaaS360, SOTI and AirWatch.
  • Transflo Mobile, Samsara* and Keeptruckin* integrations enable a fleet to skip the app install process. Drivers launch the app from within the ELD interface.

Check-the-box app configuration 

Configure your per diem app in minutes with our simple check-the-box menu.

  • Driver Types
  • Driver & Fleet Report Settings
  • Tax Halo Radius
  • Per Diem Rates

For example, the app allows you to select individual, team drivers or both. The geofence tax home radius can be set from 5 - 50 miles and that best matches fleet lanes and app installation type. Or to minimize cellular data plan usage you can white list the app using our static IP address.  


Choose from flexible service plan options

per diem plus service plans
Per Diem Plus Service Plans

Get in touch with the experts at Per Diem Plus today to discuss a smooth rollout for your system.

Purchasing a fleet per diem mobile solution for your business does not have to be a tedious effort. Consult one of our business solution specialists to learn more about the benefits of our automated per diem solution.


* Deep-link integration scheduled for Q4 2020 release

Per Diem Plus 2020. All rights reserved. Per Diem Plus is a trademark of Per Diem Plus, LLC. A proprietary software application, which provides automatic per diem and expense tracking for truckers (USPTO Registration #86754053)

Designed by drivers, built by tax pros

per diem plus fleet reort
Per Diem Plus Fleets - Fleet Per Diem Report

In this article we attempt to clear up the confusion on company-paid per diem caused by the recently passed Tax Reform and Jobs Act.

How did tax reform affect employee truck drivers and company-paid per diem?

Under the 2017 Tax Reform and Jobs Act[i]:

  • Employee drivers who travel away from home overnight will no longer be allowed to claim unreimbursed employee business expenses on Schedule A.
  • This includes per diem and other job-related expenses[1].
  • Motor carriers can still offer company-paid per diem to their employee drivers.

The good news is that motor carriers can implement an IRS-compliant accountable per diem program using the Per Diem Plus® FLEETS mobile application platform to offset the lost tax deductions for their drivers, while enhancing recruiting and retention[ii].


“Partnering with Per Diem Plus provided Reliable Carriers a turn-key solution configured to meet the needs of our fleet and offer this benefit to drivers”

Nick Adamczyk, Controller
Reliable Carriers, Inc.

Will a company-paid per diem plan raise driver take home pay?

Yes. A motor carrier implementing a company-paid per diem plan can raise effective driver pay by 2.6¢ - 4¢ CPM. All per diem paid to a driver is treated as a non-taxable reimbursement and not reported on Form W-2.

Example - Single Driver

  • In 2017 the single driver earned $85,000 and incurred $17,160 of travel-related expenses he must cover using after-tax income.
  • In 2019 the single driver earns $85,000 and elects to enroll in a company-paid per diem plan at $66 / day for each night he is away from home.
  • His payroll and income tax bill will decrease by $5,088 equal to a 4¢ CPM pay raise.
Per Diem Plus Single Driver Tax Advantage Chart
No Per Diem vs. Per Diem

Example - Married Driver

  • In 2017 the married driver earned $85,000 and incurred $17,160 of travel-related expenses he must cover using after-tax income.
  • In 2019 the married driver earns $85,000 and elects to enroll in a company-paid per diem plan at $66 / day for each night he is away from home.
  • His payroll and income tax bill will decrease by $3,372 equal to a 2.6¢ CPM pay raise.
Per Diem Plus Single Married Driver Tax Advantage Chart
No Per Diem vs. Per Diem

Employee transparency 

Per Diem Plus was designed by drivers. Your mobile app ensures trip data is instantly accessible to drivers, which enables them to actively check/monitor their own per diem. Getting buy in from your drivers will maximize the driver and fleet benefits while streamlining administration on the program for your human resources team.

Some careful scoping and planning at this early stage can go a long way towards ensuring your business is matched with its ideal fleet per diem management solution.

Get in touch with the experts at Per Diem Plus today to discuss a smooth rollout for your system.

Purchasing a fleet per diem mobile solution for your business does not have to be a tedious effort. Consult one of our business solution specialists to learn more about the benefits of our automated per diem solution.


About the Author

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

Please remember that everyone’s financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult your own tax or accounting professional.

Copyright 2018 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

[1] Under H.R. 1 “Tax Cuts and Job Act” OTR employee truck drivers will no longer be allowed a tax deduction for unreimbursed business expenses, which includes “meal expenses that take place during or incident to any period subject to the Department of Transportation's “hours of service” limits” and miscellaneous expenses.

[2] In accordance with IRS Revenue Procedure 2011-47 Sec 4.04 (superseded most recently by Notice 2017-54) covers meals and incidental expenses only. A driver can deduct 80% of per diem.

[3] In accordance with IRS Revenue Procedure 2011-47 Sec 4.04 (superseded most recently by Notice 2017-54) covers meals and incidental expenses only. A driver can deduct 80% of per diem.

[i] All amounts paid under the arrangement are treated as paid under an accountable plan and are excluded from income and wages.

[ii] Under H.R. 1 “Tax Cuts and Job Act” OTR employee truck drivers will no longer be allowed a tax deduction for unreimbursed business expenses, which includes “meal expenses that take place during or incident to any period subject to the Department of Transportation's “hours of service” limits” and other job-related expenses.

If H.R. 1 “Tax Cuts and Job Act” becomes law OTR employee truck drivers will no longer be allowed a tax deduction for unreimbursed business expense, which includes “meal expenses that take place during or incident to any period subject to the Department of Transportation's “hours of service” limits[i]. As a result, drivers will be required to choose between participating in company-paid per diem plan or cover the cost of their travel-related expenses from after-tax income. Unfortunately, Congress’s “one size fits all” approach overlooked a significant fact: The trucking industry is unique in that it does not utilize the well-established business practice of truly reimbursing for travel-related and other business expenses of employee drivers[ii]. Will Congress now require trucking companies to overhaul their per diem programs to follow business norms?

Company-Paid Per Diem Truck Driver Weekly Income Ex 1

For over 30 years fleets have utilized a unique reimbursement method for drivers whereby traveled-related expenses (i.e. meals) are deducted from a driver’s gross wages, reclassified as a pre-tax deduction and then added back into wages as non-taxable “per diem” reimbursement – all without changing the gross pay of the driver[iii]. The attractiveness of this per diem method is obvious: At $0.10 CPM a fleet can artificially boost driver take home pay by $40/week or $0.017 CPM without raising labor costs.

Company-Paid Per Diem Truck Driver Weekly Income Ex 2

What if a fleet uses the IRS’ Special Transportation Industry rate? At $63 per day a fleet can add $47/week or $0.02 CPM to driver take home pay without raising labor costs.

Maybe it is time for Congress to create a “one size fits all” employee business expense reimbursement rule.

This article was written by Mark W. Sullivan, EA, who has been providing taxpayer advocacy, consulting, and litigation services since 1998.   Prior to starting a private practice Mr. Sullivan was a Revenue Officer with the Internal Revenue Service in New York, NY, St. Louis, MO and Washington, DC. He has over a decade of experience advising transportation industry clients in per diem issues.

Please remember that everyone’s financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult your own tax or accounting professional.

Copyright 2017 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.

[i] See Internal Revenue Service Notice 2016-58

[ii] Cents-per-mile is the prevailing trucking industry method for calculating company-paid per diem. Drivers subject to DOT Hours of Service regulations are prohibited from using this method.

[iii] Drivers who declined company-paid per diem had the option to claim unreimbursed business expenses at the end of the year as an itemized deduction on Schedule A.

How will the Tax Cuts and Job Act Impact OTR Truck Drivers?

On November 16, 2017 The U.S. House of Representatives passed H.R. 1 “Tax Cuts and Job Act”[1]. The U.S. Senate has released a companion tax overhaul bill that is scheduled for debate in the coming weeks. The House bill proposes 4 tax brackets and the Senate 7, but both bills propose among other things eliminating the deductibility of unreimbursed business expenses for employee truck drivers. In general, under both the Senate and House proposals company OTR drivers that previously claimed itemized deductions for unreimbursed expenses will experience a tax increase.

Example – Single Driver: OTR driver Wayne earned $50,600 in 2016. He filed his tax return as single and claimed itemized deductions of $21,038, which included $14,868 of net per diem, $4,840 for cell phone, tools, GPS unit, etc. and $1,893 of state income taxes. His tax bill will increase $1,052 under the Senate plan and $1,243 under the House plan.

What would the impact be on Wayne if he was married? The tax overhaul increases his tax bill by $ 469 under the Senate plan and $850 under the House plan.

 

 

This article was written by Mark W. Sullivan, EA, who has been providing taxpayer advocacy, consulting, and litigation services since 1998.   Mr. Sullivan has over a decade of experience advising transportation industry clients in per diem issues.

Please remember that everyone’s financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult your own tax or accounting professional.

 Copyright 2017 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.

[1] https://www.congress.gov/congressional-report/115th-congress/house-report/409/1

 

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