All,
Our company has superintendents that are based in different locations around the country and travel to different jobsites throughout the country. Their normal duration at the job site is less than 1 year, and we have been paying them a set amount for per diem based on location and federal rates. We don't believe, based these factors, that their per diem should be taxed however the tax professionals with our payroll provider disagrees and has been taxing these per diems. Additionally, I've reviewed the IRS guidelines and from my interpretation and based on the parameters previously outlined the per diems should not be taxed.
Can anyone provide any clarification on this issue by "getting out the crayons" for me? Thanks in advance for the help!
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Darrin Johnson
Construction Accounting Manager
Spartan Construction Management
Golden CO
(720) 545-6801
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