Managing your per diem program should be a competitive advantage
- Poorly understood advantages to drivers
- Lack of comprehensive audit trail and program methods
- Failed audits
- Money left on the table for both the carrier and driver
Per Diem plans, Managed
by Experts
- We Proactively & Continuously Identify Savings
- We Deal With Regulators
- We Flag Issues Before They Cost You
What You Get With Fleetflo’s Per Diem Services
risk, and keep your fleet moving.
Audit-Readiness
Monitoring
Your Per Diem Program – managed end-to-end with clear driver benefits articulated
Fleetflo will prepare your organization for IRS audits while getting the most out of your plan.
- Fully managed services
- Audit support from leading experts
- A repeatable audit trail process
How Fleetflo Helped Real Fleets Simplify Driver Per Diem Programs
Oversize and Overweight Permits: A Complete Guide for Fleet Operators
Frequently Asked Questions: Truck Driver Per Diem Programs
Carriers and drivers have a lot of questions about per diem — how it works, what it costs, and what happens if the IRS asks questions. Here are the answers to what we hear most often.
We already offer a per diem plan — how does FleetFlo add value?
Most carriers running their own per diem programs have the basics in place but are exposed in three areas: IRS accountable plan documentation that has drifted out of compliance as rates changed, drivers who opted out because nobody clearly explained the net pay benefit, and no audit trail if the IRS asks questions. FleetFlo reviews your existing program, closes those gaps, takes over ongoing administration, and provides drivers with individualized pay comparisons that dramatically improve enrollment rates.
Where do carriers get into trouble with per diem and FICA compliance?
The most common failures are paying per diem to drivers who are not away from home overnight, paying flat rates that exceed IRS per diem limits without proper documentation, and failing to maintain substantiation records. Any of these can cause the IRS to reclassify per diem payments as ordinary wages — triggering back FICA, penalties, and interest owed by the carrier across multiple years. FleetFlo’s compliance monitoring prevents these issues from accumulating.
How does FleetFlo help carriers communicate per diem to drivers?
Driver communication is where most per diem programs fail. A driver who sees a lower gross wage on their pay stub — even if their net take-home is higher — will push back or opt out. FleetFlo builds individualized side-by-side pay comparisons for each driver, showing exactly what they take home on per diem versus off per diem at their actual pay rate. Carriers who implement this consistently see higher enrollment and stronger driver retention.
What does FleetFlo’s per diem administration actually include?
Full-service administration includes program design and IRS accountable plan documentation, annual rate updates as IRS limits change, driver onboarding materials and pay comparison tools, ongoing eligibility monitoring, payroll coordination, monthly compliance reporting, and audit support if the program is ever scrutinized. We manage per diem programs for some of the largest carriers in North America and bring that infrastructure to fleets of every size.
FAQs
Haven’t found what you need?
I’m already offering a plan – how do you add value?
Unfortunately many plans administered in the transportation sector are not compliant. Our goal is to change that and mitigate your risk. Let’s take a review, quantify your exposure, and get you on the right path.
Where do you see compliance issues?
In many areas – the most common being proper audit logging / documentation and wage misclassification. These are extremely common mistakes.
What are the consequences of compliance failure in per diem?
We generally see the IRS audit exposure for a non-compliant program in the order of magnitude of $3K per qualifying driver per year, with a potential three-year lookback window. This can be substantial for any carrier. Exposure will depend on a number of factors and will differ by carrier.
Should we have a per diem program?
Yes – per diem programs are advantageous to both the driver and company. We often see opportunities for carriers to more clearly communicate benefits to drivers.
