Is is better to get per diem pay or straight mileage pay?
My husband is a new OTR driver. His company requires new drivers to get per diem pay + mileage for the first 90 days. After that, they can elect to not receive the per diem pay and instead get a $.02 increase in mileage pay.
The payroll department told me that the per diem pay is non-taxable. I'm trying to figure out which is the best way to go to maximize his earnings but minimize the tax repercussions.
Also, I'm not sure if we accept per diem that we can write off OTR expenses. Anyone out there have any comments, suggestions, or advice? Thanks!
If this helps any, he is supposed to average arount 2500 miles per work week. This week he had 3000 miles.