[lysabrown]

Can a federal company like HUD consider you perdiem as income and count it against you as in your total wages for the year. I have just asked a job to separate my check so that I receive a separate check. They never tax this amount. However it all shows on the year to date amounts.. HUD looks at my combined amounts like my total amounts for the year-as they use it to determine my rental payments.

[JudyKayTee]

What? You are paid for your "per diem" work. That is income to you.

You don't think it should be income to you?

Or something else?

[joypulv]

Amounts paid (whether per diem or not) with no taxes withheld should be reported separately on a 1099 MISC or in a different box on the paycheck and W2. You will owe taxes on that, at a higher amount (double the FICA), so of course it's all 'income.' I think you will find that you are better off this way in regard to your rent. Are you sure your per diem has no withholding?

[lysabrown]

Yes my perdiem checks are not taxed. I understand that it is income received however my issue is that the specific portion (per diem ) won't be considered as as an expense. In other words they are saying we won't allow you any expenses. So if the job is allowing me perdiem and its not taxed, is it considered wages, because they are adding my perdiem checks and my check (for services performed) as total wages. I get a w-4 and not a w-2

[lysabrown]

[maybe my question should have been is perdiem considered to be wages. My issue is that they won't allow me any expenses and this is exactly what the per diem check is issued to me for; my hotel stay etc. They change my rental amounts based on what my year to date amounts reflect inclusive of per diem amounts. On my per diem checks the amounts are noted as miscellaneous. I am positive they don't tax my per diem amounts

[joypulv]

Sorry - I thought you were working a per diem job like nursing. That would be wages. Expenses for hotels, meals, and travel are not wages and should not be lumped in the same box as wages on your W2. (W4 is the form you fill out at the beginning; W2 is the one you get at the end of the year)
This is not to say that an employer can't issue one lump paycheck. Some of your sentences are vague, such as 'however it all shows on the year to date amounts.' As long as the totals are not REPORTED to the IRS in one lump, they can lump them on a paycheck. But usually they are separate. You say they are noted as misc, so that sounds separate, no?
Now you are saying something about how 'expenses are not allowed' so you are losing me on that part. If your per diem is considered wages because you get a % of your salary for travel etc, then that can, I think, by law, be considered part of your wage. But since you say a) it isn't taxed and b) it's under misc, then I just don't understand the problem.

[JudyKayTee]

I don't know if the discussion is about per diem wages OR reimbursement for expenses - or something else.

[joypulv]

(The GSA sets yearly per diem rates for work related travel and other travel related expenses.)

[JudyKayTee]

(The GSA sets yearly per diem rates for work related travel and other travel related expenses.)

Right, I worked for the Feds and they were sticklers.

We also had expense accounts. Yes, my per diem was considered income and taxes were not taken BUT all of my expenses (which were paid by per diem) were deductions.

I have asked that this be moved to taxes but it's a holiday and I don't know where everyone is.

And, Joy - Happy Independence Day - and stay safe.

[joypulv]

Thanks, JKT, you too. I ain't goin' nowhere.

[JudyKayTee]

Thanks, JKT, you too. I ain't goin' nowhere.

I'd expect that HUD payroll knows the law and does payroll right, but what do I know.
Happy Undependents Day!
Happy Underpants Day!

Laughing, laughing, laughing -

[lysabrown]

Im sorry... when I say they I am referring to my original question about HUD... I have no problem with my job. I am trying to prove that my per diem check should not be considered wages. HUD counts my wages and perdiem all as wages. I thought they should only count my actual wages. For example they have reported all my income for 2011 to be such and such dollar amount and they are saying you are making too much money to be on the program. My argument is that they should not be using my per diem as wages counted against me and in that case my total wages separated from per diem amounts would be substantially less therefore rendering me to remain eligible for the program. I thank you for trying to understand and the replies thus far.

[JudyKayTee]

I have to admit I don't understand - monies paid to you are wages.

What I am missing?