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  1. #1
    Join Date
    Feb 2008
    Posts
    3

    Red face Employer Per Diem

    Hi,

    I have serious question regarding the Per Diem eployer need to pay...
    My employer finds me a project as he doesn't have any project in-house and I always keep travelling to the client place, sometimes client takes care of the expenses but sometimes not so I already had a agreement irrespective of the client pays my expenses or not, my employer need to pay me Per Diem every month before joining with my employer.

    Now my employer doesn't pay me Per Diem and says as client is paying your expenses its not ppropriate to pay the Per Diem.

    But I heard as I'm travelling employer can me Per Diem as a courtesy. So someone can give me more insight information.

    Thankyou,

  2. #2
    Join Date
    Feb 2008
    Posts
    578

    Default Re: Employer Per Diem

    For business and tax purposes there are two types of plans, accountable(submitting expenses and getting re-imbursed) and non-accountable(per-diem) Generally per-diem is paid to avoid the accounting paperwork and reporting required in expense re-imbursement of employees, and per-diem cannot exceed cerain IRS limits/restrictions or it is considered taxable income. It can certainly be used as a courtesy or bonus beyond just the concept of paying expenses, but it(or that portion beyond IRS limits)would then be taxable income/wages. Mixing expenses and per-diem can be complicated. Sometimes companies reimburse for travel and lodging but pay per-diem for meals and misc. Generally, unless you have a contract that states otherwise, if all your expenses are being re-imbursed or if travel and living are provided directly by a client, per-diem would not be paid. Companies usually consider that per-diem is paid for providing for travel and living.

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