Career Path > Money Matters
Per Diem & Travel Pay
Ksheed:
--- Quote from: worker1 on Apr 17, 2014, 09:07 ---Can someone give me some advice. I have been working for a while now and the company that I work for is saying that I dont rate per diem anymore because of a dirt road, through a forest. By them claiming that the shortest distance for me to travel is taking this road it takes me away from the per diem minimum distance. can I debate this?
--- End quote ---
Per diem is a pass through cost for the employer. They do not make a profit on it and the direct cost is passed on to the customer. They are probably receiving pressure from the Utility to trim their costs. The rules for eligibility are well defined in the contract and it sounds like you are right on the edge of the eligibility requirements. Contracts are written differently depending on the utility or the job.
If your employer's contract is a hard bid job, they may be trying to trim the budget internally. As hamsamich said, per diem is not a requirement. The GSA website has a recommended rate for each area, but few employers actually pay the GSA rate. Some don't pay for commuting daily at all.
You can try to fight it, but if you do make sure you do so tactfully because the decision will ultimately be up to them. If loosing per diem is a deal breaker for you, be prepared to look for a different job. If the employer is willing to pull your per diem on a technicality, then they must consider you expendable. If the job is less than a year you can keep receipts and deduct it on your taxes. I know that doesn't pay the bills right now but it is something.
Good luck.
btkeele:
First off, I am not an expert on this, but, I have some experience.
Just because you live outside (lets say a 50 mile radius) of a plant and their limit is 50 miles.. does not
automatically qualify you for perdiem... It is about duplicate expenses... You could live 100 miles away and choose to commute each day, but, if you are not renting a room, etc (duplicate expenses) then you still would not be eligible. Does this make sense? It's a fine line sometimes.
Ksheed:
--- Quote from: btkeele on Apr 18, 2014, 10:58 ---First off, I am not an expert on this, but, I have some experience.
Just because you live outside (lets say a 50 mile radius) of a plant and their limit is 50 miles.. does not
automatically qualify you for perdiem... It is about duplicate expenses... You could live 100 miles away and choose to commute each day, but, if you are not renting a room, etc (duplicate expenses) then you still would not be eligible. Does this make sense? It's a fine line sometimes.
--- End quote ---
You are correct. Technically per diem is not for commuting. That should be paid as mileage, IF it is in the contract. The employer is not going to pay you for something that is not billable to the customer and in accordance with the contract requirements.
retired nuke:
--- Quote from: worker1 on Apr 17, 2014, 09:07 ---Can someone give me some advice. I have been working for a while now and the company that I work for is saying that I dont rate per diem anymore because of a dirt road, through a forest. By them claiming that the shortest distance for me to travel is taking this road it takes me away from the per diem minimum distance. can I debate this?
--- End quote ---
You're staying in your own place at night? The fact that you are commuting pretty much makes you ineligible (by IRS rules) for per diem. If you are duplicating expenses (have a place near work, plus paying for your primary residence) than you may be able to deduct your living expenses. Otherwise - you are working at your home.
Deal with it...
hamsamich:
The guy never said he was staying at his own place, I don't why everyone is assuming this.
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