Per Diem & Expense Policies for Drivers: Staying IRS-Compliant While Maximizing Deductions

Fleet owners in the trucking industry are continually looking for ways to reduce costs, support their drivers, and stay compliant with tax laws. One critical area where all three goals converge is in setting up proper per diem and expense policies for drivers. Per diem — a daily allowance for meals and incidental expenses — can be a powerful tool to maximize tax deductions and boost driver take-home pay, if implemented correctly. In this comprehensive guide, we’ll explore how per diem works for truck drivers, what the IRS rules demand, and how a well-crafted expense policy can keep your fleet IRS-compliant while maximizing deductions.

Understanding Per Diem in the Trucking Industry

What is per diem? In the context of trucking, per diem (Latin for “per day”) is a daily allowance that covers a driver’s meals and incidental expenses when traveling away from home for work atbs.com. Instead of tracking every receipt for each meal or truck stop coffee, per diem provides a set daily amount to simplify expense handling. The IRS considers these meal and incidental costs as “ordinary and necessary” business expenses for drivers on the road atbs.com. By using a per diem allowance, drivers and companies can avoid the hassle of itemizing every sandwich or cup of coffee, while still ensuring those costs are deductible.

Who can use the per diem deduction? It’s important to distinguish between company drivers and owner-operators when it comes to per diem. Due to changes in tax law under the Tax Cuts and Jobs Act of 2017, company drivers (W-2 employees) cannot claim unreimbursed per diem as a deduction on their personal tax returns atbs.com. In other words, if you’re a fleet owner with W-2 drivers, your employees can no longer write off meal expenses on their taxes as they could in the past. However, self-employed drivers and owner-operators (who file as independent contractors on a Schedule C) are still eligible to deduct per diem for their away-from-home meal costs atbs.com. This distinction makes it crucial for fleet owners to consider providing a per diem program: if you don’t reimburse your company drivers’ meals, those expenses simply go un-deducted altogether during the current tax law period.

How per diem works: Per diem in trucking is typically focused on meals and incidental expenses (M&IE). The IRS sets a special per diem rate for the transportation industry each year, which represents the maximum daily amount a driver can be reimbursed for M&IE without needing to provide receipts for actual costs. This allowance eliminates the need to prove actual meal costs for each day on the road perdiemplus.com. Incidental expenses generally include small costs like tips for servers or shower fees – minor day-to-day travel expenses beyond meals. Lodging is not covered by per diem in trucking; any hotel expenses must be reimbursed separately with receipts, since there is no IRS-sanctioned per diem for lodging in the trucking industry perdiemplus.com.

IRS Per Diem Rates and Rules for 2025

Staying IRS-compliant means understanding the official per diem rates and eligibility rules. The rates adjust periodically, and for the 2025 tax year, the IRS-set per diem for truck drivers is $80 per full day within the continental U.S. (CONUS) taxslayer.comatbs.com. (Outside the continental U.S., the rate is slightly higher – $86 per day taxslayer.com.) These rates went up from $69 (domestic) in the prior period, reflecting a significant jump effective October 1, 2024 atbs.com.

It’s important to note that drivers cannot deduct the full $80 as an expense on taxes. There is a built-in reduction because meal expenses are only partially tax-deductible. For truck drivers and other transportation workers subject to DOT hours-of-service rules, only 80% of the M&IE per diem is deductible on taxesatbs.com. In practice, this means for each full day away, a driver can write off $64 (which is 80% of $80) as a business expense on their Schedule C or corporate return atbs.com. If you see two numbers quoted – e.g. $80 and $64 – it’s because of this 80% limit. (For comparison, most other industries have a 50% meal deduction limit, but trucking enjoys a more generous 80% allowance as an acknowledgement of the job’s travel demands.)

Partial days: The IRS also recognizes that travel days aren’t always a full 24-hour period. When a driver leaves home in the middle of the day or returns home mid-trip, those are considered partial days. The rule is that partial days are reimbursed at 75% of the full per diem rateatbs.comperdiemplus.com. For example, if a driver heads out on a trip at 3 PM on Monday, they would be eligible for 0.75 × $80 = $60 for that day (and similarly $60 on the return day if coming home mid-day). The rationale is simple: on travel days the driver likely isn’t away long enough to incur the same meal costs as a full day on the road. Your fleet’s expense policy should clearly state that departure and return days count as three-quarter per diem. Most compliance software or logging systems can automatically calculate this if set up properly perdiemplus.com.

“Away from home” requirement: Not every mile a driver drives qualifies for per diem. The IRS has strict rules on what constitutes business travel away from home. According to IRS Publication 463, two key conditions must be met to pay (or deduct) per diem legally:

• Duration: The driver must be away from their tax home “substantially longer than an ordinary workday.” In trucking, this effectively means the driver is gone long enough to require an overnight rest break atbs.com. Simply being on duty for a long 14-hour day doesn’t count if they return home to sleep.

• Sleep or Rest: The driver must actually need to sleep or rest during the trip, away from home atbs.com. A quick nap in the cab doesn’t qualify; the rule implies a normal sleep cycle or extended rest period. If a driver starts and ends their route at home base on the same day (even if it’s a 14-hour day), that trip does not qualify for per diematbs.com. This typically means local and some regional drivers who return home daily aren’t eligible. Essentially, only over-the-road trips involving an overnight stay away from home base qualify for per diem.

Additionally, the driver must have a tax home (a fixed home base) to return to. For owner-operators, this is usually their residence (or business location) from which they run their operations. For company drivers, it’s typically where they’re based out of. Without a tax home, one cannot be considered “traveling away” in the eyes of the IRSatbs.com. It’s a good idea to ensure all your drivers have a clear tax home established (which, practically, is usually the address on their driver’s license or where they live when not on the road).

Reimbursement versus deduction: Here’s a crucial compliance point for fleet owners – if you reimburse your drivers with a per diem allowance under an accountable plan (more on that soon), the drivers do not deduct the per diem on their own taxes. The deduction in that case is taken by your company. A company can typically deduct 80% of the reimbursed per diem as a business expense on its corporate tax return perdiemplus.com. (During 2021 and 2022, there was a temporary measure allowing 100% deduction of business meals, but that has expired perdiemplus.com.) If you don’t reimburse per diem and leave drivers to fend for themselves, remember: your company gets no deduction for those meal costs, and your company drivers get none either (due to the tax law changes). This is why many fleets implemented per diem pay programs after 2018 – it was the only way to preserve that tax benefit for driver meal costs.

Why Fleet Owners Should Implement a Per Diem Program

Establishing a per diem reimbursement program for your fleet isn’t just about following IRS rules – it can yield tangible benefits for both your company and your drivers:

• Higher take-home pay for drivers: When you pay a portion of driver compensation as per diem, that portion is not subject to income tax or payroll tax withholding for the driver. It’s a reimbursement, not wages. This means the driver keeps more money in their pocket each pay period. According to industry tax experts, a well-structured per diem plan can effectively boost a company driver’s pay by an estimated 3–4 cents per mile in take-home value perdiemplus.com. Over the course of a year, this could mean a few thousand dollars of net income benefit for a long-haul driver – without costing the company extra in gross pay.

• Payroll tax savings for the company: Because per diem reimbursements aren’t considered wages, the fleet doesn’t pay payroll taxes or workers’ compensation premiums on those amounts. These savings add up. In fact, a motor carrier can save roughly $3,000 per year, per driver by implementing a per diem plan, as the reduction in employer-paid Social Security, Medicare, and workers’ comp outpaces the loss of deductibility on that 20% of the meal allowance perdiemplus.com. In other terms, a carrier might save on the order of 2-3% of that driver’s gross salary in payroll tax when a healthy portion is reclassified as per diem.

• Driver recruitment and retention: Per diem programs can be a selling point for drivers evaluating companies. Drivers are very sensitive to take-home pay. If your fleet offers a per diem pay option and competitors do not, you can advertise higher net pay. From the driver’s perspective, it’s essentially some income being tax-free. For company drivers who lost the ability to deduct their own meals in 2018, getting a tax-free meal allowance from an employer is a big deal. It improves driver satisfaction and loyalty, since they feel the company is looking out for their financial well-being.

• Simplified record-keeping: Without a per diem system, drivers would theoretically need to keep every meal receipt and the company would need to process each for reimbursement (or drivers lose out on any tax benefit entirely). Per diem is far simpler. So long as a driver’s trip qualifies, you pay the set allowance (e.g. $80 for full day) and you’re done – no need for the driver to submit dinner receipts for $12 here, $15 there. This reduces administrative burden on both the driver and your accounting department. It also reduces the chance of errors or lost receipts. By using the IRS standard rate, you eliminate the need to prove actual meal costs day-to-day perdiemplus.com, as the IRS deems the flat rate a reasonable substantiation.

• Maximizing tax deductions: From a purely tax standpoint, using the per diem method can sometimes yield a higher deduction than actual expenses. For example, if a driver is frugal and spends only $50 a day on meals, the standard $80 per diem (with a $64 deductible portion) actually lets them deduct more than they spent. For an owner-operator, that’s extra tax savings. For a company reimbursing via per diem, it means your driver kept fed and happy on $50, but you’re able to expense $64 (80% of $80) on the books. In contrast, reimbursing actual costs would only give you a $40 deductible expense (80% of $50) in that scenario. In short, using IRS per diem rates can simplify record-keeping and maximize deductions for travel-related costs truckclub.com.

Given these advantages, it’s clear why many fleets adopt per diem pay programs for over-the-road drivers. However, to reap the benefits without running afoul of tax rules, the program must be set up correctly – as part of an IRS-compliant expense policy, known as an accountable plan.

Crafting an IRS-Compliant Expense Policy for Drivers

A well-defined expense reimbursement policy is essential for every fleet. This policy not only outlines what expenses drivers can incur and get reimbursed for, but also ensures those reimbursements meet IRS guidelines (so neither you nor your drivers face unexpected taxes). The IRS has the concept of an “accountable plan”, which is basically a fancy term for a reimbursement arrangement that meets certain criteria. Reimbursements under an accountable plan are not taxable to employees and are deductible to the business (subject to the limits discussed) perdiemplus.com. Reimbursements under a non-accountable plan, on the other hand, would have to be treated as wages (taxable to the employee and subject to payroll taxes) – clearly not what we want.

When designing your driver expense policy, make sure it includes the following key elements to qualify as an accountable plan:

• Business connection: The expenses reimbursed must have a legitimate business connection. For trucking, this means things like meals on the road, lodging, tolls, parking, etc., that are ordinary and necessary for the job. Personal expenses or anything not work-related should explicitly not be covered.

• Substantiation: This is critical. The IRS requires that the employer obtain proof of the expenses – in the case of per diem, you must substantiate the time, date, and place of each trip that per diem is paid for perdiemplus.com. Practically, this means you need records of when and where a driver was on each travel day. Fortunately, electronic logging devices (ELDs) and trip sheets usually provide this data. Many fleets will require drivers to submit an overnight travel log or simply use their ELD data as documentation. If you reimburse other expenses (like lodging or tolls), receipts or electronic records are needed to document what was spent, when, and why. Simply put: no receipt (or equivalent record), no reimbursement. This keeps the plan airtight. Modern expense-tracking apps even allow drivers to photograph receipts on the go, so consider implementing a tech solution to simplify substantiation.

• Per diem at or below IRS rate: To stay accountable, if you choose to pay a fixed per diem, keep it at or below the IRS-approved per diem rate. When you reimburse at or under the federal rate for M&IE, the IRS considers the amount substantiated – no need for actual expense amounts perdiemplus.com. If you were to pay above the IRS rate, the excess would have to be treated as income. Most fleets simply peg their per diem to the current rate (e.g. $80/day) and adjust when IRS updates it. This should be stated in the policy. Also note that per diem should only be paid for days that meet the eligibility criteria (away from home overnight, etc., as discussed earlier). Paying it on ineligible days would violate the rules perdiemplus.com.

• Return of excess (if any): In some cases, companies give advances or a per diem lump sum for a trip. The accountable plan rules say that if you advance more than the allowable amount, any excess must be returned to the employer. For example, if you accidentally advanced a driver $500 for a trip where only $400 was substantiated, the driver should pay back the extra $100. In practice, if you stick to standard rates and durations, this situation can be avoided, but it’s good to mention the requirement in your policy.

To illustrate, your expense policy section on meals might read: “Drivers will be paid a meal per diem at the rate of $80 per full day (75% for partial travel days) for qualifying trips requiring overnight rest. The dates and destinations of trips must be documented via driver logs or dispatch records. No receipts for individual meals are required if claiming per diem. Per diem will not be paid for any day travel that begins and ends at home. Any travel advances in excess of the allowable per diem must be returned or will be deducted from settlements.” This kind of language ensures everyone is on the same page about how the per diem works.

Substantiating Travel Expenses

It bears repeating how important record-keeping is for substantiation. In an audit, the IRS could disallow your deductions (and potentially reclassify reimbursements as wages) if you lack proper documentation. Ensure your drivers know their role in this: they should accurately maintain logs of their trips. Most long-haul drivers already do this via ELDs as required by law. Your job is to retain those records (time, date, location) for each day you paid per diem. Many fleets keep a copy of driver logs or have an internal system to log which days per diem was paid. According to IRS rules, the records should show the “time, date, and place” for each day away perdiemplus.com – which essentially means origin/destination or route information that an ELD or dispatch report would have.

For other expenses like lodging, require actual receipts. Make it easy: drivers can use their phone to snap a picture of a hotel invoice or scale ticket and send it to the office. There are apps that integrate with trucking management systems to upload such receipts instantly. Remember, if you reimburse a hotel room, the IRS’ meal per diem doesn’t cover it – lodging must always be substantiated with an actual expense record perdiemplus.com. The same goes for any other non-meal expenses (fuel, truck maintenance if driver pays, etc., though typically fuel and maintenance are paid directly by the carrier).

One best practice is to introduce a standardized expense report form or digital workflow. Drivers, dispatchers or managers can fill out a simple report for each trip listing the dates away from home, and any other reimbursable expenses incurred. This report, accompanied by required receipts, becomes part of your accounting records.

Example: Per Diem vs. Actual Meal Reimbursement

To see why substantiation and choosing per diem vs. actual matters, consider two approaches:

• Actual reimbursement approach: A driver goes on a four-day trip. They keep all meal receipts and at trip’s end submit $220 worth of meal receipts. The company reimburses $220. For tax purposes, the company can deduct 80% of $220 (assuming all qualify), which is $176. The driver has no additional tax impact (reimbursement equals expense).

• Per diem approach: The same four-day trip qualifies for 3 full days and 2 partial days (departure and return). Using the $80/$60 figures, the company pays $80 + $80 + $80 + $60 + $60 = $360 as a per diem allowance. No receipts for meals are needed. The company can deduct 80% of $360 = $288 as travel expense. The driver might have only spent $220 in reality, but they got $360 tax-free. They came out ahead (extra cash in hand), and the company’s deductible amount ($288) is higher than under the receipts method. It’s a win-win, so long as the rules are followed.

This example shows how leveraging the standard per diem can maximize deductions and put more money in drivers’ pockets. It’s also evident why the IRS caps the deduction at 80% – to prevent abuse of that gap between actual cost and allowance. Always ensure honesty and that drivers are genuinely incurring meal costs (which they are, since they have to eat on the road even if frugally).

Per Diem vs. Other Expense Reimbursements

Your driver expense policy shouldn’t stop at meals. Truck drivers incur various expenses on the road, and a comprehensive policy will cover how each type is handled:

• Lodging: As mentioned, there’s no per diem for lodging in trucking perdiemplus.com. If your drivers occasionally stay at hotels (team drivers, breakdowns, or by policy on resets), you should spell out how those are paid. Some fleets provide a corporate hotel card or direct bill with certain chains. Others require drivers to pay and submit receipts for reimbursement. Either way, lodging must be supported by a receipt. Also consider setting a reasonable limit (e.g. “reimbursed up to $150 per night unless pre-approved”) to control costs.

• Fuel and maintenance: Company drivers typically use fleet fuel cards and company accounts for maintenance, so they wouldn’t pay these out of pocket. For owner-operators leased to you, their fuel is their own expense (deductible to them). Make sure it’s clear in your policy which expenses you cover versus what an owner-operator is expected to handle. For example, an owner-operator can’t be paid per diem by you (since they are not your employee), but they will take the per diem deduction themselves on taxes. If you operate with independent contractors, provide guidance so they understand per diem rules for their situation (maybe share this article with them or suggest seeking tax advice).

• Tolls and parking: These are common on-road expenses. Many fleets issue toll passes (like EZ-Pass) to cover tolls automatically – a good approach to reduce cash transactions. If drivers do pay tolls or parking out of pocket, require receipts or a log (many toll booths give receipts or you can use the statement from the pass). Tolls and parking fees are fully deductible business expenses and should be reimbursed in full to drivers promptly.

• Incidental expenses: What about showers, laundry, and other personal necessities on the road? The IRS’s term “incidental” in M&IE per diem typically covers small stuff like tips. Showers and laundry aren’t explicitly included in that definition, but many drivers treat those as part of travel expenses. Your policy might allow a stipend for showers or simply consider it part of the per diem (drivers can choose to use some of their meal money for a shower). There’s no one right answer. Just be clear: for instance, “Drivers are expected to cover personal incidentals (showers, laundry, toiletries) out of their meal & incidental per diem. These will not be separately reimbursed.” Alternatively, some companies reimburse showers if a receipt is provided (especially if the driver had to pay because they didn’t have fuel reward credits). Decide what works for your operations.

• Equipment and supplies: Items like load securement tools (binders, straps), safety equipment (gloves, flashlights, safety vests), or office supplies for the truck (pens, logbooks) can be deductible expenses. If you want drivers to buy certain minor items on the road and reimburse them, list those categories and require receipts. Often, companies prefer to provide these directly (issuing the equipment or allowing a spending account at truck stops) rather than reimbursement. But if a driver does buy a necessary item, have a mechanism to pay them back. These would be deductible to you (or to the driver if you don’t reimburse, though again, a company driver can’t deduct if unreimbursed these days).

• Cell phone or communication costs: Many drivers use personal cell phones for work communication. Some fleets offer a phone stipend or reimburse a portion of the phone bill. If you do, include it in the policy (and note that substantiation like a phone bill copy may be needed). Technically, a phone stipend could be taxable if not handled under an accountable plan, but most companies structure it as a non-taxable reimbursement for the required use of personal phone for work (again, requiring a copy of the bill is a good idea).

When you cover all these bases in your policy, you create a solid structure where both the company and drivers know what to expect. Everything that is covered gets reimbursed properly, and everything reimbursed is handled in a tax-efficient way.

Record-Keeping Best Practices for Compliance

Having a great policy on paper is one thing – implementing it day-to-day is another. To remain IRS-compliant and maximize your deductions, detailed record-keeping is non-negotiable. Here are some best practices for fleet owners:

1. Retain records for at least three years: The IRS (and many state tax agencies) can audit returns typically up to three years from filing (and in some cases longer). You should keep all expense and per diem records for a minimum of three years after the tax return year to which they apply. This includes driver logs, expense reports, receipts, and reimbursement documentation. Industry experts specifically recommend keeping per diem and travel records for no less than 3 years from the tax return filing date perdiemplus.com. Some suggest even longer retention for safety (up to 4 or 5 years), but three is the absolute minimum.

2. Go digital: Relying on paper receipts stuffed in envelopes is old school and risky (fading ink, lost papers, etc.). Utilize technology where possible. Many ELD systems or fleet management software allow attachments of documents or have built-in expense reporting. Even a simple solution like having drivers take photos of receipts and email or upload them immediately will create a digital trail. This also timestamps the expense, which is useful. Consider using cloud storage or an accounting system to organize these by driver and date. Not only will this make tax time easier, but if the IRS ever comes knocking, you can quickly pull up the needed records (rather than sifting through boxes in the back office).

3. Consistent documentation of per diem days: If you are paying per diem, set up a method to document which days each driver is paid for. This could be as simple as a checkbox on trip reports or a column in a spreadsheet that the dispatcher or accounting checks off. There are also specialized apps (like Per Diem tracking software) that integrate with ELDs to automatically log each qualifying day perdiemplus.com. The goal is that if asked, you can show a list of dates a particular driver was away from home, which matches the per diem you paid out. Remember, the IRS wants to see time, date, and place for each “per diem event” truckstop.com. Place can be as general as “various – OTR trip” if backed by more detailed logs, or you can note origin/destination. The driver’s logs themselves usually contain location info at each duty status change, which can serve as backup. Many fleets simply hold onto ELD backups as proof, which the IRS accepts perdiemplus.com.

4. Audit your own logs and receipts periodically: It’s wise to perform an internal audit of your expense reimbursements periodically. Pick a random driver or random trip and ensure you have all supporting docs – e.g., the driver was paid 5 days of per diem for a run from New York to California; verify that their logs do show they were out for 5 days and not home early. Or if a hotel was reimbursed, make sure that receipt is on file and matches the amount. These internal checks can catch any mistakes or miscommunications early, and they also send a message to your team that the company takes the policy seriously.

5. Separate personal and business funds: This one is more for owner-operators, but if any of your drivers are in a situation where they have to track their own deductions (or if you as an owner have some personal driving and some company operations), keep a clear line. Use a dedicated business credit card or account for business expenses, and a different one for personal. This separation makes record-keeping easier and is a tip often cited to avoid confusion truckclub.com. While as a fleet owner you likely reimburse most expenses, sometimes co-mingling can happen (like an owner-operator who is reimbursed for something by the carrier and also has their own expenses). Clean bookkeeping will maximize deductions and prevent something from falling through the cracks.

By following these practices, you create a solid paper (or digital) trail that underpins every deduction you take. Come tax season, you or your accountant can confidently claim all allowed expenses, and you’ll have the files to prove it if required. This level of organization not only avoids penalties but ensures you never leave money on the table due to lost or unsubstantiated expenses.

Avoiding Common Tax Pitfalls with Driver Expenses

Even well-intentioned fleet owners can stumble into mistakes that either violate IRS rules or cause lost deductions. Here are some common pitfalls and how to avoid them:

• Paying per diem for non-qualifying trips: This is a big no-no. If a driver isn’t actually away overnight (for example, a local route driver), you cannot lawfully pay them a tax-free per diem. Doing so would make the payments taxable because the IRS would deem it a non-accountable plan. Make sure dispatch knows who is eligible. If a driver has a mix of long-haul and local runs, only apply per diem on the nights they’re away. Never “flat rate” per diem across all days worked – it must correlate to actual travel daysperdiemplus.com.

• Not having a written policy: An undocumented plan is more likely to be considered non-accountable. Take the time to write down your expense reimbursement plan and share it with drivers (possibly as part of your driver handbook or an addendum they sign). This documentation can be shown to auditors to demonstrate you intended to follow accountable plan rules. It should detail the requirement for substantiation and returning excess, etc. If you were ever questioned, being able to produce a policy that aligns with IRS rules helps your case.

• Exceeding IRS rates without treating excess as wages: If you choose to be more generous than the IRS standard (say paying $100 a day when the limit is $80), realize that extra $20 is supposed to be added to the driver’s W-2 as taxable income. Many fleets avoid this scenario altogether by sticking to the allowed rate. If for some reason you do exceed it (perhaps to cover an unusually high-cost area), be prepared to track and report the excess.

• Failing to collect receipts for actual expenses: This is straightforward – if you reimburse something like a repair, a scale fee, a toll, etc., and don’t have a receipt or record, you risk that expense being disallowed as a deduction in an audit. Train drivers that “no receipt = no reimbursement” for non-per diem items. In the rare case of a lost receipt, have them sign an attestation of the expense and only accept that as an exception, not routine.

• Letting drivers double-dip: If you reimburse a driver with per diem, they should not also be deducting those same expenses on their personal tax return. Company drivers generally can’t deduct anyway (during the current law), but owner-operators might be tempted to deduct expenses that were actually reimbursed by a carrier (in lease operators scenarios). This is fraudulent and could trigger audits for both parties. Make it clear: expenses can be deducted or reimbursed, but not both. Drivers should consult with tax pros if they’re unsure.

• Not staying updated on tax law changes: Tax regulations can change. For instance, the per diem rate is typically updated annually (or when the fiscal year changes in October). Also, the 2017 tax law that removed company driver deductions is scheduled to expire after 2025 unless extended – if that happens, company drivers might regain the ability to deduct unreimbursed expenses, which could influence how you structure things. Stay in tune with industry news (many trucking associations or accounting firms release updates). By staying updated, you can adjust your policies (and inform your drivers) so that you’re always compliant and taking advantage of any new deductions or programs.

Leveraging Professional Help and Tools

Handling per diem and expenses can be complex, especially as your fleet grows. Don’t hesitate to leverage outside help:

• Tax professionals: Consider working with a CPA or tax advisor who specializes in trucking. They can ensure you’re capturing all possible deductions (fuel taxes, depreciation, per diem, etc.) and that your accountable plan meets IRS standards. Professionals also provide audit support – an invaluable safety net truckclub.com. As a fleet owner, your time is better spent running the business than deciphering every IRS regulation; let an expert guide you and review your setup annually.

• Technology solutions: There are apps and services designed specifically for trucking expenses and per diem tracking. For example, the Per Diem Plus® app (mentioned in industry resources) can integrate with ELDs to automatically log days away and even produce reports for payroll truckstop.comtruckstop.com. Other expense management software can simplify scanning receipts and creating expense reports. Trucking42’s own dispatch and compliance services are another avenue – by outsourcing or using a third-party service, you can ensure that logs, paperwork, and hours are all managed properly. (Many fleet owners partner with companies like Trucking42, which offers comprehensive support including professional dispatch services as well as accounting and safety compliance. These services can help keep your operations efficient and your records audit-ready.)

• Training and education: Finally, invest in knowledge for yourself and your team. Understanding the “why” behind these policies helps with enforcement. You might consider formal training for your dispatchers or fleet managers on logistics and compliance. For instance, programs like a dedicated Truck Dispatcher course (such as those offered by Dispatch42 School) can equip your staff with deeper insights into managing fleet operations and expenses. Not only do they learn dispatching skills, but also aspects of regulatory compliance that tie into things like HOS logs and trip documentation – all of which support a solid per diem program. Dispatch42 School provides such training resources online, which can be valuable for new fleet personnel or even as a refresher for experienced managers who want to stay up-to-date.

Conclusion

An effective per diem and expense policy for your drivers is a win-win strategy: your fleet remains IRS-compliant, you leverage tax deductions to the fullest, and your drivers see a boost in their take-home pay with less hassle tracking receipts. By understanding the IRS rules – from the daily rates and 80% deduction limit to the “away from home” conditions – fleet owners can tailor policies that fit their operation and keep everything above board. Remember to document your policy, educate your drivers, and keep meticulous records. Maximizing deductions isn’t about creative loopholes; it’s about diligently capturing every legitimate expense and utilizing the tax provisions designed for the trucking industry.

In trucking, margins can be thin and compliance is critical. A well-run per diem program and expense plan can save thousands of dollars a year, reduce administrative headaches, and improve driver satisfaction. In short, it’s an essential part of professional fleet management. By implementing these practices and perhaps leaning on expert services like Trucking42 for operational support or Dispatch42 School for training, you’ll keep your fleet rolling profitably on the road – with the confidence that you’re handling driver expenses the right way: transparently, legally, and advantageously for all parties involved.