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Help with Per Diem????

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  #11  
Old 04-03-2007, 09:45 AM
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Originally Posted by NevadaJim
It seems to still boil down to pay the taxes now or pay them at the end of the year. $20 more a month taken out eack week, or pay the $1000 at the end of the year.
Where are you getting $20 a month from? :?

My only question is in reference to your statement of them paying too much in per diem. Can you elaborate on this please? I really don't see how any of this can bite someone. You make X amount over the year. You pay X amount of tax on what you make. Whether you pay that monthly or at the end of the year is irrelevant when it comes tax time.
That isn't true. Income that is paid by the employer already has SS and FICA taxes paid on it, some of which is paid by the employer (out of their pocket). When they give you that "income" as per diem pay, then they aren't paying that part of the SS and FICA that they would have. You end up paying more in tax at the end of the year than you would have if they would have given it to you as straight income.

But, your statement of a company paying too much in per diem is not making sense to my thick skull. I'd much rather have the $20 a week, although peanuts, making interest in my savings account, rather than giving Uncle Sam an interest free loan for the entire tax year. Any more help would be great. I talked with a recruiter this morning and this comapny pays 8 cpm in per diem. So, if I'm missing something that will actually take money out of my pocket I'd like to know now, not later.
CPM per diem is a different scenario than what was described by the original poster.
 
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  #12  
Old 04-03-2007, 07:12 PM
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Originally Posted by Rev.Vassago
Originally Posted by NevadaJim
It seems to still boil down to pay the taxes now or pay them at the end of the year. $20 more a month taken out eack week, or pay the $1000 at the end of the year.
Where are you getting $20 a month from? :?

My only question is in reference to your statement of them paying too much in per diem. Can you elaborate on this please? I really don't see how any of this can bite someone. You make X amount over the year. You pay X amount of tax on what you make. Whether you pay that monthly or at the end of the year is irrelevant when it comes tax time.
That isn't true. Income that is paid by the employer already has SS and FICA taxes paid on it, some of which is paid by the employer (out of their pocket). When they give you that "income" as per diem pay, then they aren't paying that part of the SS and FICA that they would have. You end up paying more in tax at the end of the year than you would have if they would have given it to you as straight income.

But, your statement of a company paying too much in per diem is not making sense to my thick skull. I'd much rather have the $20 a week, although peanuts, making interest in my savings account, rather than giving Uncle Sam an interest free loan for the entire tax year. Any more help would be great. I talked with a recruiter this morning and this comapny pays 8 cpm in per diem. So, if I'm missing something that will actually take money out of my pocket I'd like to know now, not later.
CPM per diem is a different scenario than what was described by the original poster.
Sorry, meant 20 a week.

Either way, the scenario still plays out the same. If I'm paid a straight $52 a day or I'm paid x cpm in per diem. Per diem in cpm may not come to exactly $52, but either way both amounts are still untaxed income. When I file the untaxed amount will be handled the same way regardless of whether it was a straight $52 a day or a different amount.
 
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  #13  
Old 04-03-2007, 07:13 PM
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Originally Posted by Rev.Vassago
Originally Posted by NevadaJim
It seems to still boil down to pay the taxes now or pay them at the end of the year. $20 more a month taken out eack week, or pay the $1000 at the end of the year.
Where are you getting $20 a month from? :?

My only question is in reference to your statement of them paying too much in per diem. Can you elaborate on this please? I really don't see how any of this can bite someone. You make X amount over the year. You pay X amount of tax on what you make. Whether you pay that monthly or at the end of the year is irrelevant when it comes tax time.
That isn't true. Income that is paid by the employer already has SS and FICA taxes paid on it, some of which is paid by the employer (out of their pocket). When they give you that "income" as per diem pay, then they aren't paying that part of the SS and FICA that they would have. You end up paying more in tax at the end of the year than you would have if they would have given it to you as straight income.

But, your statement of a company paying too much in per diem is not making sense to my thick skull. I'd much rather have the $20 a week, although peanuts, making interest in my savings account, rather than giving Uncle Sam an interest free loan for the entire tax year. Any more help would be great. I talked with a recruiter this morning and this comapny pays 8 cpm in per diem. So, if I'm missing something that will actually take money out of my pocket I'd like to know now, not later.
CPM per diem is a different scenario than what was described by the original poster.
Sorry, meant 20 a week.

Either way, the scenario still plays out the same. If I'm paid a straight $52 a day or I'm paid x cpm in per diem. Per diem in cpm may not come to exactly $52, but either way both amounts are still untaxed income. When I file the untaxed amount will be handled as per diem the same way regardless of whether it was a straight $52 a day or a different cpm amount.
 
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  #14  
Old 04-03-2007, 07:18 PM
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Default Re: Help with Per Diem????
[quote="Rev.Vassago"]
Originally Posted by Uturn2001
Most companies that pay "per diem" do so on a cpm basis, and the only place you will see mention of $52 per day is on your taxes when you file them.
This is untrue. More and more companies are paying a flat $52 per day in per diem pay instead of mileage. The reason they do this is because it gives them more of your wages that they don't have to pay taxes on.

Which companies are doing this flat 52 a day?
 
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  #15  
Old 04-04-2007, 03:41 AM
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Default Re: Help with Per Diem????
Originally Posted by NevadaJim
Which companies are doing this flat 52 a day?
Ask the original poster. Their company does it.
 
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