Quote:
Originally Posted by sa226
I have a question regarding how businesses account for per diems paid to their employees.
In laymans terms (spoiler alert, I'm a layman) If a business has a set "pie" of money to doll out to their employees in the form of salary etc, generally any bargaining between the two sides sets just how that pie is divided.....But when it comes time to balance the books are per diems part of that pie? Does the business claim that as an expense of sorts?
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Hm. I'm going to tell you that thats a tough question.
Per Diems would be part of a company's employment expenses, but its hard to say that they would be part of an 'immovable' pie.
My semi-informed answer would be: No.
Typically salary and 'Per Diems' for out of town work are not calculated together. They can be, but they are more often very separate things.
How they are accounted for within an employer's budget? I cant really say.
Typically the Per Diem is a set, standard rate depending on the circumstances. Sometimes its just meals, or theres hotels, travel, etc, it could be any mix of them.
How a company internally budgets for Per Diems? I cant really comment on that.