Originally Posted by
ZeroTT
Devil's Advocate on the "per diem isn't compensation, it's reimbursement"
Maybe so, but that's a semantic distinction.
This is a cash flow analysis. Per diem may technically be reimbursement, but it has no connection to the expenses incurred. So if you want to not bounce checks, it very much is relevant.
Well, no, it’s not really semantics. If it was considered compensation, it would be taxable. Per diem isn’t taxable. The whole reason there’s a per diem system is because it’s much easier to give you $x/hr away from base assuming you’re spending money on food and incidentals than it is to process tens of thousands of receipts every month to reimburse you to the penny. They give you per diem with the assumption that you are expending money on the road to feed yourself. That’s why it’s reimbursement. If you don’t have a per diem system, you’re submitting receipts for food and such for reimbursement from the company while you are on the road doing company business.