Published
I have a question about per diem rates AKA tax free stipends or whatever other term is used. I have been told that whatever city you are traveling to, you go to the GSA.gov website, type in the city and state, and it will give you your daily allowances, which then you multiply by 7 to get your weekly tax free stipend. Let's say Nashville, TN for example. The weekly stipend there is around 1400$ a week. Some companies such as Trustaff are willing to offer me nearly all, if not all, of the full 1400$ weekly and just make my taxable rate a little lower such as 18-20$ per hour. So basically, trustaff offers 18$ hourly taxed, then 1400$ per week untaxed.
But, my question is here. Some companies (such as American Mobile and Aureus) will offer me about half that tax free amount, maybe a little over half, with a hourly rate around 23-26$ hourly. I would much rather have my higher stipend and lower hourly, but they claim this is a "red flag". I have talked to multiple tax consultants and every one of them have said as long as you don't go over the GSA maximum amount that you're fine. And, in the case you do get audited, all you would have to show is your contract which provides proof you were in that city for that amount of time. But, for some reason these recruiters at Aureus and American Mobile are saying too much tax free money is a red flag even though the GSA.gov website has a lot higher amount.
So, finally, the question is, are Aureus and American Mobile trying to lowball me while Trustaff is givig me the most money possible? Or are all of these tax consultants wrong and the travel recruiters correct in saying this will cause me to get audited and have to pay a lot of money in fines, etc? It is hard to believe the tax consultants would be wrong and the recruiters be correct? I just want to know if anyone knows what to believe or has questioned this before. I obviously would like to get the most money possible and would much rather get it tax free if possible. Thanks ahead of time. Just wanted to be sure before I accepted any contract.