A per diem clause specifies a daily allowance paid to an individual for expenses incurred while working away from their usual location, covering costs such as meals, lodging, and transportation. This provision ensures that employees or contractors are reimbursed efficiently for necessary business travel expenses.
The maximum per diem rates for meals and incidental expenses for partial travel days (e.g., day of departure and return) will be reduced to 75% of the maximum applicable per diem rate.
Meals that are already paid for (such as through a registration fee for a conference) will reduce the meal per diem for that day by the amounts listed on the GSA web page for “Meals and Incidental Expenses (M&IE) Breakdown.”
In addition, non-management directors will be paid a per diem fee of $1,000 for attendance at or participation in events, conferences or meetings, in their capacity as a director, at the request of InterDigital, Inc. senior management, provided that such attendance or participation requires a significant time commitment and would be considered outside of the director’s typical Board and/or Committee duties. Any per diem fee payments will be subject to the approval of the Compensation Committee of the Board of Directors.
Payments under this rider are restricted to the annualized IRS per diem limit under IRC Section 7702B. If the acceleration requested would result in a payment greater than the annualized IRS per diem limit, then the accelerated benefit amount will be reduced accordingly.
Temporary Living Accommodations: Up to a maximum of 60 consecutive days. Per Diem will be provided for the first 30 days. Two days of a rental car will be provided; fuel will be included in the per diem. This is a taxable benefit and will be tax assisted. The amount of this benefit will be added to the employee’s W-2 as income.
The Company’s effective tax rate, when compared to the federal statutory rate of 21%, is primarily affected by state income taxes, net of federal income tax effect for the current year periods, and permanent differences, the most significant of which is the effect of the partially non-deductible per diem pay structure for our drivers. Drivers may elect to receive non-taxable per diem pay in lieu of a portion of their taxable wages. This per diem program increases the Company’s drivers’ net pay per mile, after taxes, while decreasing their gross pay, before taxes. Per diem pay is partially non-deductible by the Company under current IRS regulations. As a result, salaries, wages and employee benefits costs are slightly lower and effective income tax rates are higher than the statutory rate. Due to the partially non-deductible effect of per diem pay, the Company’s tax rate will change based on fluctuations in earnings (losses) and in the number of drivers who elect to receive this pay structure. Generally, as pretax income or loss increases, the impact of the driver per diem program on the Company’s effective tax rate decreases, because aggregate per diem pay becomes smaller in relation to pretax income or loss, while in periods where earnings are at or near breakeven the impact of the per diem program on the Company’s effective tax rate can be significant.
Install & Training Per Diem: In addition to any earned sales commissions, the Company will pay the RFP consultant Daily Per Diem of ($1,500.00), inclusive of travel days and approved business expenses upon authorization from the Company for any customer installations and training.
Per diem is a Latin term that translates to “per day” or “for each day.” In the context of business and employment, it typically refers to a daily allowance provided to employees to cover expenses incurred while traveling for work. Commonly, it covers meals, lodging, and other incidental expenses.
You should use a per diem allowance when:
When writing a per diem policy or entry, consider including:
Example:
The company will provide a per diem allowance of $150 per day to cover meals and incidental expenses for employees traveling more than 50 miles from headquarters. This per diem will be paid in advance.
Contracts that typically contain per diem provisions include:
These contracts often specify the terms and amount of per diem, ensuring both parties have a clear understanding of entitlements and obligations concerning travel expenses.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A performance bond is a financial guarantee issued by a third party, typically a bank or insurance company, ensuring that a contractor will fulfill their obligations as stipulated in a contract. If the contractor fails to perform satisfactorily, the bond provides compensation to the project owner for any resulting financial losses or project completion costs.
A performance bonus clause outlines the conditions under which an employee or contractor is eligible for additional compensation based on exceeding predefined performance metrics or achieving specific targets. This incentive is designed to motivate individuals to enhance productivity and align their efforts with the organization's strategic objectives.
A performance guarantee is a contractual clause that ensures one party fulfills their obligations as specified, often by providing financial assurance or a form of security. It serves to protect the other party against losses or damages if the obligations are not met satisfactorily.
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