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I'm not sure I ever heard what you are talking about, but it's probably in regards to taxes (like there's a "per mile" rate to get a tax credit based on business travel). The only time I ever heard the term "per diem rate" is in regards to pay for substitute teaching; you are not guaranteed work every day and are usually paid by the day, not hourly. So the pay may be advertised as something like "$85 per diem".
Yes, this is not the "per diem" that I was referring to. Thank you
You need to give us a little more information than you have, specifically what your company and situation are.
There is a government per diem rate set for every part of the country, but it's only required to be paid by the government to government workers when their employer (the government) requires them to be away from their home overnight.
For that situation (again, only government-there is no requirement for a private employer to follow this scheme), it consists of a
-hotel rate, which is a reimbursement for what the hotel actually cost up to a maximum level (e.g., if the rate in a city is maximum $100.00/night, that's all the government will pay-if you stay in a $30.00 a night hotel there, $30 is all all you'll get; if you stay in a $200.00/night hotel, you will only get $100) and a
-food/incidentals expense, which is a flat amount-e.g. it might be $40.00 for a certain city and it is your problem to keep your food bill within $40.00 or less.
If you're in a private company, they may or may not pay a per diem rate, or they may have another scheme.
It is a 1 year contract with a private company and the client is located more than 50 miles from my home.
I am also confused. I am a government contractor who has an office in CT. I travel a fair amount, and when I do it is on the government per diem rate as set by the GSA: Per Diem Rates
The GSA sets the prices of how much I can pay for hotel stays, how much I get for meal reimbursements, etc. all based on the city/county/state I am traveling to. Generally private companies don't adhere to the government per diem rates, except for government projects, though other companies where I have worked have used pieces of the set government per diems, such as mileage rates that you will be reimbursed. Reimbursement rates are clear cut and straight forward across the federal government but are extremely different in the private sector.
As for getting the cash reimbursed to me, I charge everything and my company reimburses me via my paycheck after I submit the necessary documents to my accounts payable person at my office. You really need to speak to whomever does the reimbursements at your company (the accounts payable person, payroll, or it may even be HR, depending on the hierarchy of your company).
Good idea. Thank you. My recruiter doesn't seem to have the details.
Good idea. Thank you. My recruiter doesn't seem to have the details.
The GSA per diem schedule is for Federal Government work only. If you aren't going to be working for them (or as a contractor) - it won't apply to you.
In general, per diem is basically the allowance a company provides for food/lodging when traveling. The allowance is not regulated, so every company would have their own. Some may follow the GSA schedule for simplicity sake since its published and available, but its not a requirement. Your best bet is to find out what the company's policy is.
The GSA per diem schedule is for Federal Government work only. If you aren't going to be working for them (or as a contractor) - it won't apply to you.
In general, per diem is basically the allowance a company provides for food/lodging when traveling. The allowance is not regulated, so every company would have their own. Some may follow the GSA schedule for simplicity sake since its published and available, but its not a requirement. Your best bet is to find out what the company's policy is.
Yes, I believe that the contract company must use the GSA guidelines b/c the recruiter told me that those are the rates. Thank you for your help!
Yes, I believe that the contract company must use the GSA guidelines b/c the recruiter told me that those are the rates. Thank you for your help!
Private companies are not required to use GSA rates (one exception may be if they are working with a government client, in which case, they may adopt those rates at their client's request). Some do use those rates, but that is due to their choice, not a requirement. For example, at my company, our milage rate for personal car use matches the GSA rate; my wife's company uses a different rate (which I believe is about 10 cents less per mile).
I had a previous job that involved a lot of travel and my per diem guidelines were as follows (bear in mind that this was around 2003-2005 so rates may seem a bit low):
For every full day I was on the road, I received $40 per day for meals; partial days pro-rated the amount. So if I left the office at 5:00 PM on Monday and arrived home at 10:00 AM on Friday I would get $20 for Monday, $40 for Tu-Th, and $10 for Friday, so $150 to cover meals. No receipts required; if I spent more than that, the remainder came out of my pocket, if I spent less, I kept whatever was leftover. In certain major metro areas (i.e. NYC, L.A., a higher per diem rate would be allowed due to the higher general costs in those areas).
If I drove my own car for any part of the trip (even if just to and from the airport), I could reminburse something like ).35 per mile driven.
For other travel costs, such as airfare, hotels, car rentals, etc., I would turn in receipts and be reimbursed the exact amount. Although we had guidelines for maximum costs for airfare and hotel rooms.
Also, bear in mind that at almost every company I have ever worked at, per diems are reimbursed after the fact upon submission of an expense report. In my meal per diem example above, they would not give me $150 before I left for the trip, I would pay for meals out of pocket or charge to my corporate card while on the road and would get my per diem $ paid back after the fact (usually about 1.5-2 weeks after submission of an expense report).
I'm wondering if anyone has worked more than 50 miles from their home and used the "Per Diem rate"? I understand that there is the government set housing and food rate per day depending on area.
I've been told that if you stay in an extended hotel four nights per week (Monday-Thursday), you will get that rate four days per week once you show the lease to your company.
What if you wanted to rent an apartment for the entire month that is less expensive?
Is this money added to your pay by your company? Or is it related to you taxes?
I would really appreciate any information.
Thank you in advance!
My husband travels most of the year and here is what our accountant told us.
My husbands employer pays $25 a day (they also provide hotel rooms and a company vehicle). Our account told us that we could figure out what the average per diem rate is for the United States (for food and entertainment only though since gas and hotel are provided) x number of days on the road. He could then take that amount and subtract out the $25 x number of days on the road then divide that number in half.
I didn't end up taking the job out of state, but have found a 2 month contract with travel M-F, so in this position will use the GSA per diem rates. Haven't found out what my territory is yet, but figured it was good to take a job while still looking for a longer term contract or perm. position in my field.
I truly appreciate everyone's input. Very helpful!!!
As others have said, Per Diem is an agreed upon allowance for Employees/Contractors working outside of their home locality...typically outside 50 miles I believe.
Usually there is a rate for lodging and a separate one for food/other allowances and most public sector contracts follow the GSA Guidelines. I don't know if the GSA schedule is law though as I've worked on Federal Govt contracts where they paid a per diem which was less than the GSA guideline.
Also, different contracts have different approaches to travel days. Some offer per diem at a modified rate while some depend on how many hours you work, etc.
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