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5 Replies Latest reply: Aug 5, 2010 12:33 PM by NUMBERS2DSIGN RSS

What distinguishes a per-diem vs a full time employee?

Blake123 Newbie
Currently Being Moderated
"If a person is offered a job at 40 hrs/wk, can the job be considered per-diem, or does it have to be considered full time employment (Not a traveling job)? "
  • Re: What distinguishes a per-diem vs a full time employee?
    KathleenF Apprentice
    Currently Being Moderated
    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!
    Kathleen
  • Re: What distinguishes a per-diem vs a full time employee?
    bm911tax Apprentice
    Currently Being Moderated
    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.
  • Re: What distinguishes a per-diem vs a full time employee?
    Bridge Expert
    Currently Being Moderated

    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.

  • Re: What distinguishes a per-diem vs a full time employee?
    NUMBERS2DSIGN Newbie
    Currently Being Moderated
    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)

     

     

    IRS Definition of a Independant Contractor:

     

    People such as lawyers, contractors, subcontractors and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. However, whether such people are employees or independent contractors depends on the facts in each case.

     

    The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the *+right to control or direct only the result of the work and not the means and methods of accomplishing the

     

     

    Example: Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies that she obtained through advertisements. Vera is an independent contractor.

     

    References/Related Topics

     



     

    Hope this helps!

    Ashley

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