Resources > Tax Free Plan

Tax Free Plan - Are you getting 11 cents per mile tax free?

Roehl's Tax Free Plan provides a tax free reimbursement for truck drivers who spend the majority of their time at work away from home (AKA: “over the road”). Here’s how it works:
  • We pay you a 12.5 cpm lower mileage rate than our standard fully taxable plans.
  • We provide you 11 cpm as a non-taxable reimbursement.
  • Some people get “caught up” in the difference between our standard pay plans and the Tax Free Plan. Why the 1.5 cpm difference? Wages are fully deductible as a business expense whereas reimbursements are not. The company suffers higher taxes by providing reimbursements rather than wages. Creating this voluntary benefit plan is more costly to the business. If you’re getting hung up on that difference, think of it this way – you can certainly sit on the dock and contemplate the physics of how 130,000 tons of steel floats on water and in the meantime your ship has sailed. Avoid getting caught up in paralysis by analysis. 
 


To sign up for 11 cpm tax free, speak with your Driver Employment Specialist or, once you join TeamRoehl, contact your pay services representative or your fleet manager. Once you are in the plan, you may opt-out at the beginning of each quarter by contacting your pay services representative.
 

Don't miss your boat
 
  • The 11 cpm tax free reimbursement is not subject to:
    • Child support calculations
    • Garnishments
 
  • The 11 cpm tax free reimbursement is not subject to taxes:
    • No federal income tax
    • No state income tax
    • No Social Security tax
    • No Medicare tax

Do the math. Here’s an example that illustrates why you’ll take home more with the Tax Free Plan. (Plug in your own numbers based on your particulars. You can get the tax rates that apply to you from the IRS and your state department of revenue. Social Security tax is 6.2% of your wages and Medicare tax is 1.45% of your wages.) (If the chart below does not display fully, rotate your device.)
 
  Tax Plan Tax Free Plan Notes
115,000 miles at 48 cpm 46.5 cpm 46.5 cpm = 35.5 cpm + 11 cpm tax free reimbursement.
Gross Taxable Wages: $55,200 $40,825 Does not include additional pay or bonuses.
Tax Free Reimbursement: +       $0 + $12,650  
Sub-total: $55,200 $53,475  
       
Social Security & Medicare Taxes:  - $4,223  - $3,123 $1,100 less tax
Federal Income Taxes:  - $5,444  - $3,269 $2,175 less tax
State Income Taxes (WI):  - $2,510  - $1,500 $1,010 less tax
Total $43,023 $45,583 $2,560 more for you!