The following slides show in-depth information about Per Diem Manager by Atlantic HR Solutions. These slides provide guidance to drivers about Highway Transport’s New Per Diem System.
Beginning January 1st 2018, company drivers can no longer claim a Per Diem deduction on their end of year taxes/Form 1040, Schedule A. Drivers can only receive the benefits of Per Diem, if they are participating in a company sponsored reimbursement program like Per Diem Manager.
A driver who is out of town overnight may receive one $63 meals & incidental expense reimbursement up to 7 times per week.
Per Diem is automatically awarded only after a driver confirms their DOT HOS-log each day.
A driver must depart for an overnight trip before 12:00 noon to be awarded Per Diem on the first day away from home and return home after noon to be awarded Per Diem on the last day away from home.
Per Diem is awarded when travelling at least 50 miles away from your tax home zip code.
IRS-required “Time, Date and Place” substantiation is retained and accessible to a driver for 7 years.
Owner Operators per diem is not calculated in payroll. It is compiled for end of year reporting.
The IRS is Very Specific About Per Diem
Per Diem is a payment to an employee under an accountable expense reimbursement allowance that is —
Paid for business expenses the employer reasonably anticipates will be incurred by an employee for travel away from home for: Meals and Incidental Expenses
A fixed amount is awarded instead of reimbursing actual lodging, meals and incidental expenses: No receipts required.
All amounts paid under an accountable plan are: Tax free, are not reported on Form W-2 and are not subject to income or employment taxes.
Anyone who travels out of town overnight for work is allowed to claim Per Diem.
A driver must be working away from home for at least 12 hours. This refers to the day a driver starts and ends their travel.
Within a reasonable amount of time the employer / driver must substantiate “Time, Date, and Place”, business connection and purpose of travel. A driver’s log approval provides the required substantiation.
Highway Transport Drivers Always Have the Option to Opt out of the Per Diem Program
To opt out, click here. You will be taken to a site where you watch a video and complete a form to opt out of the program.