Understanding Per Diem and Travel Pay



What are per diem payments? What is their purpose? Can firms include per diem payments in employees’ wages? What is an accountable plan? When are per diem payments taxable? If your firm assigns technical workers, travel nurses, or other skilled temporary or contract employees to sites far from their homes, you need to know the answers to these questions.

A per diem is a daily allowance designed to cover duplicate living expenses for employees who are on assignments away from their home or place of business on a temporary basis—though it does not cover the cost of transportation to the site at which the employee is working, or commuting expenses.

During this webinar, attendees will learn

  • How to satisfy the accountable plan requirements
  • Tax, home, and travel expenses
  • How the “one year” rule and “break in service” rule affect per diem payments
  • How per diem allowances affect wage calculations
  • When companies may be subject to audits by the U.S. Department of Labor and U.S. Internal Revenue Service
  • How to avoid split wage issues
  • How per diem allowances affect wage recharacterization


Marc D. Freedman, Esq., partner, Freedman & Friedland LLC

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