What is Per Diem?
Per diem is a fixed daily allowance paid to a worker to cover expenses such as travel, meals, or lodging incurred while working away from their home base.
Why does Per Diem matter?
Per diem is common in travel-heavy staffing placements, like travel nursing or field service roles, and can be a meaningful part of a worker’s total take-home pay beyond the base pay rate.
How does Per Diem work?
The agency or employer sets a daily rate based on the assignment location and often IRS or GSA per diem guidelines, then pays it separately from the hourly wage, sometimes with different tax treatment depending on how it is structured.
Frequently asked questions
Is per diem taxable?
It depends on how it is structured and documented; per diem paid under an accountable plan that meets IRS substantiation rules is often non-taxable, but this varies by situation, so consult a tax professional for specifics.
Who typically receives per diem?
It’s most common in travel-based roles like travel nursing, IT consulting, or field service contracts requiring workers to be away from their home base.
How BrightMove helps
BrightMove’s Back Office module lets agencies track per diem and other pay components separately from base wages on every placement. See BrightMove’s Back Office billing and invoicing.