Are Hourly Payments Legitimate?
FAQs
Q1. Are hourly payments legitimate?
A: I realize this is a controversial subject and opinions differ. My guide is the law and the IRS who say that hourly payments are not legitimate. To be considered legitimate by the IRS, the payments must be paid for every day when I'm physically residing in the city more than 50 miles away from my home base. The days must include non-working weekends and holidays known as stand-by days. Your firm may calculate an hourly rate for the PD based upon your firm's need for a reasonable profit, but your firm must pay me a set rate for every day when I'm in that remote city. One possible explanation is that "per diem" means per day, not "per hour". My experience is that if an agency is telling me the PD must be paid hourly, the agency is usually uninformed. The best contract staffing firms pay the PD for every day. If this or the next two pages sound confusing to you, don't give up yet! With PD payments you can still increase your company's profits by 63.8 per cent!! (21-A10)
Q2. How can I contact you?
A: Give me a call or send me e-mail.
- E-mail: click here
______________________________________________________
Copyright ©1998-2003 by Rob Davis, P.E.
http://www.robdavispe.com | http://www.softwaretestengineer.com
Rob Davis is a registered and licensed professional engineer.
Rob specializes in Software QA / Verification / Validation / Testing.
