Page 31 - USX Driver Handbook

U.S. XPRESS, INC. DRIVER HANDBOOK U.S. XPRESS, INC. DRIVER HANDBOOK
Per Diem Pay Plan

U.S. Xpress has long recognized that its drivers incur travel expenses
while performing their duties for the Company. Such personal expenses
include meals, showers, laundering and other necessary living expenses.
The Company intends that the compensation paid to drivers include
amounts needed for such necessary expenses and that the expense
reimbursement component of the drivers’ compensation is identified as
“per diem.”
Per diems are paid in an amount that reflects the anticipated expenses
of the drivers and are paid in accordance with guidelines established by
the Internal Revenue Service as an “accountable plan.” Driving positions
that require the driver to be away from home overnight on a regular basis
may be eligible to receive per diem payments through U.S. Xpress. The
Company, in accordance with IRS regulations, has established eligibility
requirements for drivers who are interested in participating in the U.S.
Xpress Per Diem program. Per diem payments made to drivers are not
included in drivers’ taxable wage base and are not subject to employment
or withholding taxes.
Although it is the policy of the Company to identify all anticipated
expenses as nontaxable per diem payments, the Company acknowledges
that some of its drivers desire to receive expense reimbursement in the
form of a taxable wage. For various reasons, such drivers desire to bear
their own burdens of record keeping and tax reporting of their expenses.
If a driver requests to be excluded from the per diem payments, the
Company will continue to reimburse the driver for his travel expenses.
However, the rate of reimbursement will be at a non-per diem rate.
The non-per diem rate will be included in taxable wages and include a
component to compensate the driver for the additional tax he/she will
incur on the reimbursement.
From time to time, drivers will question why the mileage rate
reduction is greater than the per diem mileage rate. While it seems you
will earn less under per diem, this is not true. The difference between
these rates help the Company offset the additional tax cost associated
with paying per diems versus regular wages.
For 2007 and forward, only 80 percent of per diem payments can
be deducted. This means that U.S. Xpress will pay a higher tax if it pays
you one dollar in per diem than it would pay by paying you one dollar in
regular wages. This is because if we pay drivers one dollar in per diem,
we can only deduct 80 cents.
Even with the net reduction in your total mileage rate, it is almost
certain that your take-home pay will increase if you participate in the
U.S. Xpress Per Diem Program.

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