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    LTDean119's Avatar
    LTDean119 Posts: 1, Reputation: 1
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    #1

    Feb 7, 2011, 03:40 AM
    Salary and per diem rates
    My boyfriend is working as a contract employee, he is paid a salary on the books, and also a per diem rate, this rate has increased due to a new position, he only received a w-2 showing the salary rate. I am worried that there is a 1099 out there that we have not recevied, my boyfriend insists that the per diem rate is non taxable, does this sound right, if so, how can a per diem rate change per position in company if in same location?

    Also, the per diem rate is included in the hourly rate, so if he is making 32.00 he, only 12.00 is on the books, the rest per diem, this doubles with overtime. I am afraid he is going to report this wrong.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Feb 19, 2011, 11:28 PM
    If the per diem is for a temporary job at a location at least 50 miles from where your boy friend lives, AND the job has not lasted for more than one year, then the per diem IS considered a non-taxable reimbursement of expenses incurred.
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