Per Diem

[RichO]

Can someone explain how per diem works in the airlines? Tell me if I'm incorrect here, but from what I can tell, if your gone on a 2 day trip, let's say, and your gone 34 hours, does this mean you get (Perdiem rate * 34) or what? Typically how much does one make off of perdiem during a 1 month period? (for someone on a line, and 1 on reserve) Is this taxed?

 

[CA1900]

Depends on the airline, but yes, what you describe is basically how the system works. For example, I'm about to go on a trip that'll have me gone about 24 hours, so at Commutair's $1.25/hour, I'll get $30 added to my next check for that trip. It's not taxed; my company adds it to the "Expense Reimbursement" block on my paycheck.

With those two-day trips (which is the bulk of what Commutair's running right now), you'll get maybe another $250-275 a month. (Our previous schedule included 4-day trips, and if you did nothing but those, you could pull nearly $400 a month in per diem.) On reserve you'll generally make $0, unless you're called for trips.

Other airlines with longer trips and higher per-diem will no-doubt pay more.

 

[RichO]

Thanks, that pretty much answers my question.....

 

[FlyingDawg]

IRS rules allow companies to pay overnights per diem (subject to DOT rest requirements) tax free and that amount is reported in Box 12 of your W-2 under the L code. If you don't show an equal or greater deduction then this amount will become taxable on your federal return at years end. (See IRS Pub. 463 for a better explanation than I can do in this forum. Certain transport-workers, including pilots and FA's, are allowed an excepition to the 50% limit. The percentage is 60% for 2001 and increases overtime to 80% in 2008).

Per diem paid on day trips (because it does not require a required rest) will usually have taxes withheld and that amount will be included in Box 1 of your W-2.