We have an independent contractors and we pay all expenses when they go out of town to do some work for us like hotel, local transportation, rental car, airfare and per diem. Is the per diem taxable, they are not employees and we do not get any receipts in return from them? Is it also correct that...

Can someone please tell me if per diem is taxable? My brother took a job this past year and half his salary is per diem, as he travels daily. He receives a monthly expense allotment for which he submits receipts. His per diem is for meals and accommodations only. Of course, he has asked me to...

When does Per Diem become taxable to a contractor? I have told it is after one year but I cannot find anywhere on the IRS web-site or in any publications.

I am a contract worker who has worked and lived out of state for just over a year. I have received a per diem of 2/3's of hourly pay rate for my out of state living expenses. The W-2 that I received only reports the 1/3 that was taxed. I am responsible to pay federal tax on the per diem?

An employee from our india office will be working/living in the US (PA) for the next 3 months. He will be paid his rate in India, but we need to determine a reasonable per diem for him while he is here. We are paying his rent/utilities.