With the newly signed tax bill, drivers may no longer deduct meal and incidental expenses on their own. They will now look to the carriers to mitigate the economic loss by implementing a pay plan that allows drivers to receive a portion of their pay as per diem, exempt from FICA and state and federal income taxes. Not participating in a viable per diem program could cost drivers thousands each year.
As the drivers learn of the changes to deductible expenses, more drivers will look for carriers that offer viable per diem programs. Now is the right time for carriers to implement per diem to ensure driver retention and increase hires.
HCH specializes in developing and implementing per diem programs, and has done so for fleets of all sizes all over the country. Correctly implemented driver per diem programs can benefit both the driver and the carrier. Properly structured and executed plans can save both drivers and carriers thousands, while adhering to the strict IRS guidelines outlining how per diem must be applied in the trucking industry.