Re: Contractors & Per Diem

Subject: Re: Contractors & Per Diem
From: "Anthony Markatos" <tonymar -at- hotmail -dot- com>
To: pnewman1 -at- home -dot- com, tonymar -at- hotmail -dot- com
Date: Fri, 17 Mar 2000 07:44:08 PST

Tony Markatos asks Peter Newman:

Peter, thanks for the informative response. It sounds like you are saying that per diem is (or at least can be) a seperate bucket of money above and beyond posted (or negotiated) hourly rate. True?

If true, is this so when getting assignments through agencies (usually W2 wages)? Or are you just talking about an independent contractors (usually 1099) dealing directly with the client company (no 3rd party intermediatory)?

Peter Newman originally said:

I have found that many companies are quite up front about their policies. Just ask them. If they tell you they have no policy, your negotiation skills will now come into play. I never negotiate this until the hiring is agreed upon and the pay is set. I then talk about travel and per diem.
The government (IRS rate) is rather low compared to reality. It is
intended for use by those who may have less than adequate records.
Negotiate a realistic per diem rate for the area you are going on
temporary assignment to. Consider the following:
Hotel or other lodging, should not be a flea bag, but not super luxury. (remember, you are going to live there for a while and just a bedroom gets claustrophobic.) Many corporations will provide you with
comfortable accommodations with maid service. Food, you cannot cook all your meals......
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