I have a new employee that has potential to earn a Regular hourly wage. (But not every pay period)
This employee also works on a per diem basis for job performed but does not earn a Regular hourly wage during this time.
How do I calculate the per diem time for Washington State Worker's Comp calculations since they are based on an hourly work schedule?
Thank You
I'm not sure if this is what you are referring to, or if you are using Per Diem differently, but...
The IRS has a good write-up here: www.irs.gov/publications/p463/...
It starts with: This chapter explains where and how to report the expenses discussed in this publication. It discusses reimbursements and how to treat them under accountable and nonaccountable plans.
The implications of this article in QuickBooks are:
If you setup your reimbursement so that is an Accountable plan (you probably want to) when you can add the Per Diem amount to paychecks as an Addition that is not compensation and has a Tax Tracking type of None. It is not reported anywhere on payroll forms and does not impact taxes.
If it is not an Accountable plan, then setup an Addition that is of the type Compensation and the Per Diem amount will be reported in Box 1 as wages.
An Accountable Plan is essentially where the per diem amount is within allowable Federal limits and the employee accounts back to the employer (think expense report with receipts) and returns any unspent money.
Please mark your question solved if this answers your question.
Tim Teichman - Intuit Product Manager
