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    2 Replies Latest reply on Jan 10, 2009 2:44 PM by optimustk

    Divide Hourly Rate into Per Diem Rate and Salary

    optimustk Wayfarer

      Employee and S-Corporation based in Chicago, Illinois. While keeping the apartment(not sub leasing) in Chicago, employee work in Washington, DC metro in a short term project(maximum 6 ,months)

      We receive $55/hour from the client in DC.
      From GSA Per Diem Rate for DC area is:*

      Hourly RateMax Daily Per Diem Rate from GSAProposed Daily Per Diem RateTotal Days in MonthTotal Work Hours*Income=Proposed Daily Per Diem Rate*Total Work Hours**Monthly Per Diem Cost=Proposed Daily Per Diem Rate*Total Days in Month*Balance After Per Diem Cost =Income -Monthly Per Diem CostHourly Salary Rate=Balance After Per Diem Cost/Total Work Hours


      Could we pay him *$180 as daily per diem rate and $20 / hour as salary*? and keep $4.32 for paying employer contribution for social security plus other company expenses? Is this calculation look reasonable? Thanks in advance.