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LawTalk, Attorney
Category: Legal
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Experience:  I am a practicing attorney with more than 3 decades of experience in the legal field.
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I am doing a 6 month contract in Wisconsin and being paid

Customer Question

Hi. I am doing a 6 month contract in Wisconsin and being paid 60/hr. The first 39 is being taxed and the last 21 is being called per diem. I was living in Florida prior to this contract. I let my apartment in Florida go since I'm living in a furnished room in Milwaukee with no lease during this contract. My license is Florida and my car is registered there too. Am I able to get this per diem tax break or should I be paid differently? Just trying to avoid an audit or huge tax bill later.
Submitted: 1 year ago.
Category: Legal
Expert:  LawTalk replied 1 year ago.

Good afternoon,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

No, you are allowed to be paid per diem on this temporary assignment. The per diem pay is intended to compensate you for housing and meals and is not taxable either by the feds or by the state.

Employers may legally provide employees with a per diem allowance for lodging, meals, and incidental expenses incurred when the employee is traveling for employment in an amount that does not exceed guidance approved annually by the Internal Revenue Service. This payment is referred to as a "qualified per diem plan", and there is no necessity for the employee need to maintain detailed records and receipts for expenditures.

In conclusion, yes, you are eligible to get this tax free per diem benefit.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

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I wish you and yours the best in 2015,