ask your questions about prime inc here

Check out the company website...

http://www.primeinc.com/index.html

If you can't find it there, then the recruiters would be the best bet. I think most of us posting here work out of reefer division.

 

Never count on an exact date/time for him to be home. As you've learned...stuff happens.

When he's in the driveway....then he can be considered home.

 

DH has been down that way quite a few times while training and we were through there a few weeks ago and are about to go that way again next week.

 

Prime training is, Once you have your CDL you are a driving partner to a guy who never goes home and you sleep and he drives and then wash and repeat, If you can sleep in a truck then you will be fine, I'm going on my 3rd week and doing good. Take Care. TD.

 

Ok I have heard many drivers say that they don't like per diem. Now what I have experienced in jobs I had that per diem is expense reimbursment pay and not taxable. I don't know how they get away with doing it that way but aparently they can in this case. Now, is this how per diem is used in drivers pay? Can they delay this payment and hold it for some reason?

 

If anyone wants to argue about per diem... take it to the "Per Diem" thread. This is just to answer ka5pfb's question...

What trucking companies do (with IRS blessing) is call part of your compensation "per diem" - lets say you get paid 34 cents per mile. What they do is select an amount that won't exceed the $59 per day (less 80&#37 amount that the IRS allows to be tax deductible. In the case of Prime that would be 7 cpm. So now you are paid taxible wages on 27 cpm, and non-taxible per diem on 7 cpm. You get the entire amount in each settlement. Many companies hold a portion of the per diem amount (1 or 2 cpm is the usual amount they gouge) as an administrative charge for dealing with per diem payments - that's a ripoff. Fortunately, Prime doesn't susbscribe to that - you get the entire amount.

Now... is it a good deal? Many companies force you into per diem - Prime doesn't. For the company, it lowers your gross income reported to the IRS, and they save on lower Social Security taxes, etc - but pay more business income tax on the per diem amount. For the driver, you have less exposure to IRS withholding, but you get less paid into your SS over time. It may affect your ability to get a loan due to your lower gross - but any smart banker should be able to figure that you're acutally making more because of the per deim payments. The effect on your paycheck is it is a bit larger because of the lowered IRS withholding.

At tax time, you claim the per diem deduction (if you have enough to itemize) less the per diem payments made by the company.

If you can itemize your deductions for the IRS, meaning if you own a house - then I'd say no... don't take per diem. If you're single, no house, then you're not going to have enough deductions to itemize so it's not going to help your IRS return - ask yourself the question: How much does SS matter to me? If the answer is "a lot" then don't take per diem, otherwise you'll see a little more money in your paycheck if you do take it.

 

Thanks IP, that is the best explaination I've heard on that subject. I won't want to get per deim because I ususally have a sizable schedule A. Companies I have worked for usually gave out per deim for living expenses and it was over and above your paycheck and had nothing to do your income.

I guess the trucking companies are taking advantage of the per deim and get some benefit from using it.

Thanks

Kevin

 

Good Post IP. I showed in another forum how the per diem netted the driver more money than not taking it, but still got posters saying that the per diem was a bad deal. You explained the circumstances where it would be a good deal quite well.

 

From what I can see per deim is a good thing for most people. It's like getting free money, with the money not even showing up as income on your form 1040. It's like a reimbursement for your travel expenses. It's also an expense write off for Prime too.

 

Ok, question time. When I get through with the instruction phase I will be issued a MO CDL? Do I have to at some time go to Louisiana and get the license converted to a LA license?