Interesting question raised about the $52 per diem for transport industry. Doesn't look like everyone rushed to answer it, but does pose a question.
The Per Diem reimbursement for an accountable plan has been around for a long time but seems like only now have trucking companies caught on.
An employee driver gets paid $400 on payroll, and after his net pay is calculated, then he has $104 added to his check for two days on the road. $400 is taxable wages, $104 does not appear on W-2 anywhere for the employee and is not taxable to him. Employee does not have to submit meal receipts, but is required to document on an expense report that the nights were spent away.
Employer charges $104 to "Per Diem Expense" Is employer entitled to deduct only 50% of the $104 when employer's tax return is filed??
The Per Diem reimbursement for an accountable plan has been around for a long time but seems like only now have trucking companies caught on.
An employee driver gets paid $400 on payroll, and after his net pay is calculated, then he has $104 added to his check for two days on the road. $400 is taxable wages, $104 does not appear on W-2 anywhere for the employee and is not taxable to him. Employee does not have to submit meal receipts, but is required to document on an expense report that the nights were spent away.
Employer charges $104 to "Per Diem Expense" Is employer entitled to deduct only 50% of the $104 when employer's tax return is filed??
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