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    Intrepidwf72's Avatar
    Intrepidwf72 Posts: 1, Reputation: 1
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    #1

    Mar 24, 2014, 01:05 PM
    Can per diem be taxed
    Can a company tax per diem and it still be considered per diem?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Mar 24, 2014, 01:24 PM
    Sure. Remember - it's not the company that taxes the per diem, its the IRS. If the company pays you a per diem that falls outside of the IRS guidelines for being tax-free (for example if you are not staying overnight at the job site, or they pay you a higher rate than the IRS allows, and/or the assignment has lasted more than a year so is no longer considered to be "temporary") then the company must withhold taxes.
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