CSX PER DIEM AGREEMENT
CSX Allied Federation Members,
Effective December 28, 2019, CSX Maintenance of Way employees will change from the current daily meal per diem and travel allowance payment structure (“Expenses”) to a daily meal allowance payment structure only. The current “Expenses” arrangement is considered “non-accountable” under IRS rules and regulations which creates tax liability for both employees and employers because non-accountable plans do not track real and actual expenses incurred while traveling and working. However, IRS rules and regulations permit the payment of a maximum daily meal and incidental expense allowance for transportation industry employees (“M&IE”) that does not require the submission of receipts. More importantly, payments under the M&IE arrangement are not subject to taxation for either the employees or the employer for all days worked by an employee. To ensure that future payments for CSX Maintenance of Way employees are properly non-taxable, CSX and BMWED entered into an Agreement that results in daily meal allowance payments under the M&IE arrangement.
Under the current “Expenses” arrangement, employees receive daily meal allowance and a travel allowance that results in the total weekly amounts paid as described below:
Employees on 4 or 5 day work assignments: $398.00
Employees on 8, 9, or 10 day work assignments: $594.00
Employees on 4 or 5 day work assignments: $303.64
Employees on 8, 9, or 10 day work assignments: $499.64
District Floating positions:
Employees on 4 or 5 day work assignments: $273.73
Employees on 8, 9, or 10 day work assignments: $469.73
Beginning December 28, 2019, Maintenance of Way employees will receive an increased daily M&IE meal per diem payment. Under the M&IE arrangement, employees shall be paid on varying days of the calendar week in varying amounts based specifically on each employee’s assigned workweek, but at no time will the daily amount exceed the federal daily limit (currently $66 per day), nor will the total net amount received on a weekly basis be lower than the aforementioned weekly amounts, except as indicated in CSXT Agreement No. 12-011-19.
Note that M&IE per diem paid to the employees on all work days are exempt from tax and will not be included in their annual income, while M&IE per diem paid on rest days or holidays (when an employee does not perform work) will be taxed as income to the employee. Again, however, the employee will still receive the total net amount described in the aforementioned weekly amounts because CSX will “gross up” all taxable payments so that the employee suffers no financial loss. A copy of the chart of how M&IE payments will be paid for respective gang and workweek assignments in a perfect week (i.e no work days taken off) is provided for your reference.
Below are several links to important information regarding this change. Please take the time to carefully look at each link below that thoroughly explains how these changes will be applied.
- Allied Federation Officers
Page Last Updated: Nov 01, 2019 (14:45:03)