RE: Contractors & Per Diem

Subject: RE: Contractors & Per Diem
From: "Murrell, Thomas" <TMurrell -at- alldata -dot- net>
Date: Wed, 15 Mar 2000 07:52:31 -0500

> From: Anthony Markatos[SMTP:tonymar -at- hotmail -dot- com]
> Question for all listserv contractors:
> I am considering temporarily relocating to take a contract position. In
> such situations, is per diem:
> * A separate bucket of money above and beyond hourly pay?
> * A percentage of the hourly pay?
I was a contractor for almost 5 years, though I have been an "associate" for
the past two.

I've seen per diem handled both ways. One contractor I worked with
negotiated a total compensation package, with part of it split out as per
diem to cover his travel and relocation expenses. He worked a couple of
hours from his home and went home on weekends, maintaining a separate
apartment near the job site. Another negotiated both pay and per diem
separately. In both cases, the difference, I believe, ended up being mostly
for tax purposes, either for the contractor or for the hiring firm.

Tom Murrell

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