Definition
Per diem is Latin for "per day." In staffing it means a daily allowance for meals, lodging and incidental expenses when a worker travels away from home for an assignment, such as a crew sent to another city for a large event or a project. Under IRS rules, per diem paid under an accountable plan can be tax-free if it follows the rules on substantiation and reasonable amounts, often tied to federal GSA rates. The term is also used loosely for day-to-day, as-needed work.
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This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.