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Never heard of a per-diem employee. Wouldn't that be the same as an employee contracting for you and reporting wages on a 1099?
Just curious because I've never heard it called per diem before. Per diem is usually a daily rate for living or travel expenses.
I may be wrong though!
Yes, you can have Per Diem Employee. This is a street term. This mean non-regular hours employee. You work when they need you, no set hours. If they offer a set hours it would not be per diem anymore.
Per-diem ("day-rate") usually refers to what someone's pay rate is based on,i.e. per the day, job, etc. Many nurese work "per-diem" where they have no set hours but are paid an hourly rate as the are sent on temporary assignments - such as home health nurses.
Per-diem can be full or part-time workers. Whether they are "employees" or "independant contractors" is based on the supervision they are given, contracts they have signed, etc. The IRS does not care what you call someone or how you pay them in determiing if someone is an employee or independant contractor - if it walks like a duck and quacks like a duck, it is a duck.
Learn something new every day around here! :)
The APA (American Payroll Association) has a common law guide to help determian if you have an employee or a "Contractor" or as you call it per-diem employee.
Questons are like:
How much training is given to the person (Normally a contractor you would not train, as you hire them on their professional skills)
Is there an agreement?
Is this persons services available to the public (If they can only work for you, they are your employee, if they can work for you and oters, then they are typically a contractor)
Does this person have a financial investment in the project? (An employee typically does not invest)