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You could make assumptions like these, but it's not how all companies do
this. A per diem could be negotiated as completely unrelated to your
paycheck rate or wage.
I posted about this two years ago (check the archives for "per diem"). With
one agency, They took the per diem out of my wages, to the tune of about
$10/hr. I got a weekly "tax-free" per diem check as well as a regular (puny)
paycheck. No receipts were involved. Some on the list thought it was absurd
to consider that per diem was subtracted from the wage/rate. Others
questioned the validity of the so-called non-taxable nature of that per diem
check. (The per diem amount was not included in my annual wage statement,
thus reducing my taxable income.) Still others considered the per diem
amount that I quoted to be unreasonably low.
My best suggestion is that you check with a business tax accountant to see
what's reasonable and customary, and what you can actually get away with
From: Anthony Markatos [mailto:tonymar -at- hotmail -dot- com]
Sent: Wednesday, March 15, 2000 9:24 AM
Subject: Hourly Rate & Per Diem??
Questions for all listserv contract workers:
* When a salary survey says that an average TW contractor makes, lets say,
$45 per hour; can I assume that per diem (if applicable) will be a portion
of this money (and not a separate bucket of money)?
* When a contract job posting (like on www.dice.com) says that the the
position pays $45 - $50 per hour, can I assume that per diem (if applicable)
will be a portion of this money (and not a separate bucket of money)?
All responses appreciated.
(tonymar -at- hotmail -dot- com)
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