Re: Contractors & Per Diem

[Peter <pnewman1 -at- home -dot- com>]

Anthony Markatos wrote:
> 
> 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?

Absolutely True It should be, but as they say, the girl will never say
yes if you don't ask.

> 
> 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)?
> 

When you are placed by an agency, you are negotiating with the agency.
The difference between what they are paid and what they pay you is their
profit. Because they may have the ability to obtain local talent, they
may very well be c.., ahem, not inclined to be very liberal with per
diem allowances. I have seen W2 employees on temporary assignment
negotiate good per diem deals.  Remember though, the per diem allowance
is taxable income and the actual expenses, to the extent permitted by
law are deductible. You must maintain good records so that if you are
audited by the I.R.S. you can prove your deductions.

-- 
Peter

Arguing with an engineer is like mud wrestling with a pig.
You soon realize they both enjoy it.