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I've heard the same thing from agencies I've talked to about per diem.
Frankly, I've had no experience with agencies that pay per diem *without*
digging into the hourly rate. But if you contract directly for a client,
they pay your expenses separately from your labor rate - without blinking an
eye. It's all in your billing.
If only the agencies would pass on the per diem expenses to the client, they
would be less resistive to pass on the per diem payments without messing
with your paycheck. And perhaps the way to get your per diem is to go on a
1099 basis instead of W2. I'll ask about that when I meet with my
accountant. He's helping me on the details with switching to 1099 with my
From: Anthony Markatos [mailto:tonymar -at- hotmail -dot- com]
Sent: Thursday, March 16, 2000 7:14 AM
To: lenx -dot- humbird -at- intel -dot- com; techwr-l -at- lists -dot- raycomm -dot- com
Subject: RE: Hourly Rate & Per Diem??
Tony Markatos responds to Len Humbird's (below) comments that per diem is
typically dollars above and beyond hourly pay:
Thanks Len, this is valuable information. If so (and I have no reason to
doubt), then agencies have been trying to "snooker" me. I have been talking
with several agencies about remote contract positions. To be honest, all
have told me that per diem is a subtraction from posted (or negotiated)
hourly rate - not separate dollars above and beyond the hourly pay.
As you can well imagine, this is a significant chunk of change!
Many agencies (W2) act surprised if I ask if the per diem is dollars above
and beyond posted (or negotiated) hourly rate - like such is unheard of.