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October 7, 2020

Use Per Diem To Raise Trucker Pay To Attract New Drivers

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. 

Designed by drivers, built by tax pros

Per Diem Plus fleets trip summary
Per Diem Plus Fleets - Trip Summary

2021 TAX LAW UPDATE - READ ABOUT 100% DEDUCTION FOR PER DIEM


Raise Trucker Pay To Attract New Drivers

A company-sponsored substantiated per diem plan can raise trucker pay to attract new drivers.

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 10% or more
  • Save a fleet several thousand dollars per driver
  • Eliminate the need to retain ELD backups for 3 years

"I still think to get new people into the industry, given the 150K-200K driver deficit and robust demand in 2021, pay is going to have to go up a lot more than 20%."

U.S Express CEO Eric Fuller told Yahoo Finance (9/30/20)

The Numbers Speak For Themselves

Adding a substantiated per diem program for employee drivers is a sure-fire way raise driver take-home pay by 10% or more while saving the motor carrier money. Consider the following:

  • The typical over-the-road (OTR) driver averages 127,000 miles annually and is away from home 295 nights a year
  • A driver would receive $19,470 of tax-free per diem at $66/day[1]
  • Unlike a cent-per-mile plan it can be earned during HOS-mandated 34-hour restarts and unforeseen delays
  • The average driver will save thousands of dollars in income and payroll taxes, equivalent to several cents per mile

Use our Fleet Per Diem Benefit Calculator to learn how much your fleet can save with Per Diem Plus Fleets


Example - Driver Savings

per diem vs. no per diem married driver tax savings table
Per Diem v No Per Diem - Single Driver Tax Savings

A single driver from South Carolina could save $6,046 in taxes equal to an extra 5.2 cents-per-mile. Learn how state tax rates impact per diem in our post State Income Tax Considerations of Driver Per Diem


Example - Fleet Savings

Fleet Savings From Per Diem

A fleet with 75 drivers and could raise driver pay by 10% or more and still save $206,250. Do not believe the savings are achievable? Read our Case Study. The motor carrier saved $3,000 per driver within the first year of implementing Per Diem Plus Fleets. In addition, they received a $125,000 workers compensation premium refund.

Our cloud-based FLEETS mobile app platform enables fleets to easily implement an IRS-compliant fleet per diem plan that will raise driver take-home pay by 10% or more while also saving the motor carrier money.


Related Articles:

Implementing Per Diem Plus® FLEETS into Your Fleet to Ensure a Smooth Rollout

Raise Driver Take-Home Pay with Per Diem


About 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.


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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