American Marconi Wireless News - Payroll4Construction Explores Per Diem Rules for Traveling Construction Crews

Per diem sounds simple: a set daily amount for lodging, meals and incidentals. But the IRS treats it very differently from wages.

Amounts paid above the federal GSA per diem rate for a location are generally taxable unless the employee substantiates the extra expense. Per diem that's tied to hours worked - or folded into an employee's hourly pay - can be treated as wages.

That means it may count toward the regular rate of pay, which raises overtime costs. If per diem is misclassified, contractors can end up owing back payroll taxes and penalties after an audit.

Payroll4Construction's article, "What You Need to Know About Per Diem Construction Jobs," explains how to avoid these problems. It covers how per diem is defined, how it's taxed and how contractors can keep it separate from wages on every job.

Other key topics covered include:

• How GSA per diem rates follow the federal fiscal year, including non-standard areas and the IRS high-low method
• When per diem is excluded from the regular rate of pay and does not factor into overtime
• How accountable plans and separate line items help keep per diem non-taxable and audit-ready
• How state tax rules, union agreements and certified payroll reporting add complexity on multi-state and prevailing wage jobs
• What to look for in construction-specific payroll services that can handle these layers in one place

For contractors sending crews out of town, the piece lays out a clear path to setting a written per diem policy and tracking it consistently from job to job.

To learn more about managing per diem on construction jobs, read the full article here.

Payroll4Construction, LLC
Payroll4Construction is a payroll solution just for contractors. Payroll4Construction can help manage certified payroll reporting, complete multi-jurisdiction processing, handle union tracking, cut checks, issue direct deposits and so much more. For information, visit payroll4construction.com, call (800) 949-9620 or email [email protected].

Foundation Software, LLC
Foundation Software delivers job cost accounting, expense & pay management, estimating and takeoff, project management, safety management, HR management, mobile field apps and payroll services to help contractors run the business side of construction. For information, call (800) 246-0800, visit www.foundationsoft.com or email [email protected].

Media Contacts

Tracie Kuczkowski | VP of Marketing
[email protected] | (800) 246-0800 x 7933

Samantha Ann Illius | Marketing Relations Coordinator and Influence Specialist
[email protected] | (800) 811-5926 x 4823

SOURCE: Payroll4Construction, LLC

View the original press release on ACCESS Newswire

Y.Kobayashi--AMWN