Per diem help.

[mom2cuties0406]

My dh is a company driver, has ben with his company for 18 months. They announced at a meeting they are going to start per diem. We've never dealt with this and we're being told he will have a $59 charge for each day he runs the truck 10-12 hrs. Which is 5-6 days a week. So we have to pay out? It just doesn't seem right, I think someone is missing some info or not understanding correctly. If they take that out, we'll lose $1,000 a month.
Can someone explain per diem better to me, please?

[MidnightSun327]

Per Diem is a non taxable sum that drivers are allowed for each day they are away from home to help support the living expenses they need while out. If your company does per diem, it just makes it easier when you file your taxes. They will take out $59 per day before taxes and put it back in as non taxable. A driver who makes $40k a year will only have $26k taxable and another $14k not taxed, so it does save you money and makes it easier for you. If the company does not do per diem, you can actually figure out how many days he was away from home, for example 100 days, and multiply that by $59, so that is $5900, and claim that money on your taxes and you will get back the taxes on that $5900. It is just easier if the company does it all for you because if you keep track, you actually have to keep a calander in addition to the log book that shows the days your dh was out every year for proof.

[Eridee07]

That really helps. I didn't understand it before but now I do. Thanks a ton2

[hapybren]

My hubyy gets $59 per night that he is on the road, this adds up and really helps us out to pay all the bills! Your DH should not be paying, he should be getting $59 each NITE that he is alway from home...

[mom2cuties0406]

Thanks so much! He didn't understand until I read him the replies here. We got his first check with per diem today, no problems. I appreciate the help, thanks girls!