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IARP CONNECT Code of Conduct

  • 1.  Per diem, hotel reimbursement ...

    Posted 11-12-2022 19:46
    Curious as to the forums thoughts regarding
    per diem, hotel reimbursement and wage loss.

    Can the per diem and hotel reimbursement be included in wage evaluations?

    For instance- 
    construction worker 
    10 months a year works out of town
    Hotel paid, daily
    Per diem paid daily

    No personal expenses for food or lodging 7/7 days a week ( works 6 days) - works alternate job out of town alternate months.

    Any links to specific articles that discuss? 
    Or opinions that have upheld?

    Thanks.


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    Beth Pasikowski
    Vocational Case Manager
    bethp2021@mail.com
    Michigan
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  • 2.  RE: Per diem, hotel reimbursement ...

    Posted 11-12-2022 20:10
    IMO no. Per diem reimbursement for travel expenses is not taxable income. I have seen VE's try to incorporate this into their opinions but they face rigorous cross examination and forensic economists have not agreed. 

    John 

    John Meltzer



    Original Message


  • 3.  RE: Per diem, hotel reimbursement ...

    Posted 11-13-2022 11:07
    Excellent question. Many in construction see per diem as real income. They take the money and then find the very cheapest motel room/rental or sometimes share rooms, eat at McD's and drive some cheap little old funky beater that gets 35 MPG, pocketing all the rest, tax. In a way it is a bit similar to the person with a side business or 1099, realizing various financial benefits with car, home, etc, and writing off various expenses on their schedule C such that that $25K gross amounts to a loss of like $1K at year end. 
    In reality it is "real" to the person since it "feels" like income, but I leave it alone as it is all too complex to ferret, the "benefits" are constantly in flux, and so on. 

    How about the waiter whose W2 says minimum wage but tells VE he made $300/night on tips? Credibility dance?

    ------------------------------
    Scott T. Stipe, MA, CRC, CDMS, IPEC, D/ABVE
    Certified Rehabilitation Counselor
    Board Certified Vocational Expert
    Scott Stipe & Associates, Inc.
    DBA Career Directions Northwest
    4110 SE Hawthorne Blvd
    #188
    Portland, Oregon, 97214
    (503)234-4484
    (503)234-4126 fax
    email: sstipe@careerdirectionsnw.com
    website: www.careerdirectionsnw.com
    ------------------------------

    Original Message


  • 4.  RE: Per diem, hotel reimbursement ...

    Posted 11-13-2022 11:35
    Great question. It is an IRS issue. The hotel expenses and per diem are not taxable. The hotel expense is an employer expense either paid up front or reimbursed. It is an expense of working away from home. As for the per diem, this is usually provided as a standard amount paid per day against estimated expense. The IRS recommends that you keep receipts in case of audit. But then it depends on who is auditing because if the per diem is reasonable it is just so much easier for them to presume reasonable expenses. We all have to eat and cover incidentals. Its like the IRS mileage standard. So much easier to simply show business mileage than to produce receipts for every fill-up and maintenance expense. 

    By the way, this is the same for any of us who have to travel for an evaluation or to attend a distant hearing, or to attend a conference. Those away from home expenses that get reimbursed or paid up front are not taxable or earned  income.

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    Jeffrey Barrett MEd CAP CRC CCM CVE
    Rehabilitation and Vocational Consultant
    optionsplus@vocrehab.com
    Hollywood, FL United States
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    Original Message