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Where are you getting $20 a month from? :? 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.
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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.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.
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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.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.