Pe diem sou ds simple: a set daily amou t fo lodgi g, meals a d i cide tals. But the IRS t eats it ve y diffe e tly f om wages.
Amou ts paid above the fede al GSA pe diem ate fo a locatio a e ge e ally taxable u less the employee substa tiates the ext a expe se. Pe diem that’s tied to hou s wo ked – o folded i to a employee’s hou ly pay – ca be t eated as wages.
That mea s it may cou t towa d the egula ate of pay, which aises ove time costs. If pe diem is misclassified, co t acto s ca e d up owi g back pay oll taxes a d pe alties afte a audit.
Pay oll4Co st uctio ‘s a ticle, “What You Need to K ow About Pe Diem Co st uctio Jobs,” explai s how to avoid these p oblems. It cove s how pe diem is defi ed, how it’s taxed a d how co t acto s ca keep it sepa ate f om wages o eve y job.
Othe key topics cove ed i clude:
- How GSA pe diem ates follow the fede al fiscal yea , i cludi g o -sta da d a eas a d the IRS high-low method
- Whe pe diem is excluded f om the egula ate of pay a d does ot facto i to ove time
- How accou table pla s a d sepa ate li e items help keep pe diem o -taxable a d audit- eady
- How state tax ules, u io ag eeme ts a d ce tified pay oll epo ti g add complexity o multi-state a d p evaili g wage jobs
- What to look fo i co st uctio -specific pay oll se vices that ca ha dle these laye s i o e place
Fo co t acto s se di g c ews out of tow , the piece lays out a clea path to setti g a w itte pe diem policy a d t acki g it co siste tly f om job to job.
To lea mo e about ma agi g pe diem o co st uctio jobs, ead the full a ticle he e.
View the o igi al p ess elease o ACCESS Newswi e
