Originally Posted by
dera
If is compensation. The fact that you write 3 paragraphs about it doesn't change the facts.
If it can be used to calculate DTI for mortgage, it's compensation.
If part of it will be on your W2, it's compensation.
You arguing otherwise won't change reality.
Per Diem is an allowance purposed to cover costs directly associated with travel, such as food and other expenses.
Compensation is pay given to you because you performed work.
Whether per diem is on a W2 or not is outside the scope of this forum and is more an accounting issue. If your company pays per diem more than GSA rates, that "extra money" has to be categorized as income.
Per diem payments are not considered wages, and are therefore non-taxable, as long as the payment is equal to or less than the federal per diem rate. If you receive a per diem payment that is
more than the federal per diem rate, you will be required to pay income tax withholding and payroll taxes, since
the excess amount will be considered wages. Your employer should report this to you on a W-2 form.
If you can contribute per diem into your 401(k) or use it to build your Health Savings Account, let me know.