.svg){kind=logo}
Per diem
Per diem is a Latin word that means by (per) the day (diem).
Per diem is a Latin term meaning "per day," often used to describe a daily allowance provided to employees to cover expenses incurred while traveling for work. These expenses typically include meals, lodging, and incidental costs. Instead of reimbursing individual receipts, employers provide a fixed daily rate, simplifying expense management for both employees and organizations.
Key Features of Per Diem
- Fixed Daily Rate:some text
- Employees receive a predetermined amount for each day of business travel, regardless of actual expenses.
- The rate may vary based on location, as costs in some cities or countries are higher than others.
- Expense Coverage: Per diem typically covers:some text
- Meals and beverages
- Lodging (if not prepaid by the employer)
- Minor incidental expenses, such as tips or local transportation
- Simplified Expense Reporting: Employees are not required to keep receipts or submit detailed expense reports for covered items.
Benefits of Using Per Diem
- Convenience for Employees: Eliminates the need for employees to track every small expense while traveling.
- Streamlined Accounting for Employers: Simplifies expense management by providing predictable costs and reducing administrative overhead.
- Tax Advantages: In many jurisdictions, per diem payments are tax-free up to a certain limit, provided they meet local regulations.
- Fair Compensation: Ensures employees have adequate funds to cover their daily needs without overspending or underspending.
Considerations for Per Diem Policies
- Local Compliance: Employers must ensure per diem rates comply with local tax laws and labor regulations.
- Standardization: A clear policy outlining eligible expenses and applicable rates is essential to avoid confusion.
- Tracking and Auditing: While per diem reduces the need for detailed reporting, organizations should maintain basic records for accountability.
- Location-Specific Rates: Establish rates based on the cost of living in different cities or countries to ensure fairness.
How RemotePass Simplifies Per Diem Management
- Automated Per Diem Calculation: Set location-based rates and let RemotePass handle the calculations.
- Compliance Made Simple: Ensure per diem policies align with local tax and labor laws.
- Global Payment Support: Pay employees seamlessly in their preferred currency, no matter where they are.
- Transparent Records: Keep a digital trail of per diem payments for audit and reporting purposes.
Related Glossaries
W-8BEN
IRS form that tells the US government that the individual is not a US resident.
Off-cycle payment
"Off cycles", occur when payments are processed outside of the regular payroll cycle.
Unlimited PTO
Allows employees to use fully paid unlimited leave.
Related Articles
March Updates: Automations, Calendar Sync & Pro-Rata Payroll
Discover RemotePass' latest updates! Automate workflows, sync leave requests with your calendar, streamline payroll with pro-rata settings, and integrate seamlessly with Wafeq.
Hear what teams love
about using RemotePass.
Love it! It has been an essential tool for us, the perks of having everything at the point of my fingers. Using RemotePass has been super efficient. The platform is user-friendly and fast, and communication with customer service is truly a "gold standard".
Working with RemotePass has been extremely easy and effortless. The customer support team are second to none - always quick to respond, always helping with desire and delivering perhaps some of the best customer service we have ever encountered. Onboarding new contractors and employees is quick and easy, and we are happy to recommend RemotePass to others
RemotePass has hands down been one of the best (useful and easy to use) platforms I've worked with in the past few years!
RemotePass has been a great success partner for Amwal, it truly enabled us to be international talent friendly. Attracting top talent without the hassle of thinking how we would hire and pay abroad.
RemotePass has really helped us take the pain out of managing salary payments, contract managements, and admin work with our remote teams. They feel much more in control and more connected because of it.
RemotePass is a game-changer for us. It has made managing our remote teams effortless and has greatly improved the process of hiring, managing and collaborating with our team remotely. Highly recommended
We’re delighted to express our satisfaction regarding our collaboration with RemotePass. Their cutting-edge cloud-based platform has revolutionized our workforce and hiring procedures, enabling us to enhance efficiency and effectiveness in managing everything. It serves as a comprehensive solution that has greatly simplified our operations, making remote work effortless.
RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.
Brilliant service. We love and we'd be using it for the years to come. Also great customer success management as well!
We love the entire system you guys have built, it's user-friendly and in particular we love the automated notifications part. Employees are automatically informed about the payment status and they receive the payment in a couple of hours after they get notified vs. manually asking us. Thanks for your ongoing support
Using RemotePass has been an absolute game-changer for our operations - knowing that we have a reliable partner on our side even in complex regions efficiently (this has previously been a big headache for us), allows our teams to focus exclusively on client service and product delivery
We were looking for a simple and affordable product and RemotePass more than delivered. RemotePass helped us streamline and manage our remote teams. RemotePass understood us as a company and provided us the support and confidence that we are compliant with regulations, our remote teams have excellent support, and that we made the right choice
RemotePass has been very helpful as it streamlines the payment process to our consultants, with a simple 2 to 3 clicks the job is done. It is effortless and straightforward to use. The most important thing is that It eliminates any compliance risks we might face, and the lengthy verification process. Overall the system is excellent, and I would recommend it to other organizations.
The product has been incredibly a game-changer for us as we scaled our team globally. Creating a great first impression when onboarding remote teams. Everything centralized in one place. Love it!
Our work with RemotePass is a partnership based on trust and credibility we are proud to have. With RemotePass services, onboarding and payroll for our global team is well managed and our employees feel safe and cared for.
I was instantly impressed with the UI/UX of the RemotePass platform, it is incredibly user-friendly and the feedback I have received from the remote workers has been excellent. Having supplied contract and remote staff to clients in the Middle East for several years, I have been used to a very manual and labor-heavy process when it comes to payroll and compliance. After one demonstration from the team at RemotePass I switched from using an existing supplier, as I get better value and service using this platform.
.svg)
