How are per diems supposed to be paid out?

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WeatherMaster
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How are per diems supposed to be paid out?

Post by WeatherMaster » Mon Apr 20, 2015 7:16 am

I am wondering about the proper way per diems are supposed to be paid out? If you get X$ per day per diem is that what you are supposed to receive? I have heard that some company's pro-rate the per diems and anything over 4 hours is then paid out as your per diem.

I have tried searching the TC web site and also CRA and have not been able to find the answer I am looking for. If any one has any insight to this please let me know.
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ahramin
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Re: How are per diems supposed to be paid out?

Post by ahramin » Mon Apr 20, 2015 7:37 am

What does your contract or collective agreement say?
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blockheater
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Re: How are per diems supposed to be paid out?

Post by blockheater » Mon Apr 20, 2015 7:47 am

WeatherMaster wrote:I am wondering about the proper way per diems are supposed to be paid out? If you get X$ per day per diem is that what you are supposed to receive? I have heard that some company's pro-rate the per diems and anything over 4 hours is then paid out as your per diem.

I have tried searching the TC web site and also CRA and have not been able to find the answer I am looking for. If any one has any insight to this please let me know.
There's no "proper way" for per diems to be paid out, as this would be subjective from company to company... however, per diems should not be taxed as income by your employer. It could be a flat day rate, a pro-rated rate 4, 8, 12 hrs away, or an hourly rate away from base. Some companies don't even give you a per diem.

What you may be asking about is how do you go about claiming this for tax purposes? Coles notes version: Company pays you X amount of per diems for the year. Government allows you to claim up to $55 per day, depending on how long you are away from home base (lets call that Y). Calculate how much you are entitled to claim, based on your movements for the year and subtract the amount of per diems your company paid you (X-Y). If the result shows that you pocketed MORE than what you can claim, you're not entitled to claim anything. If your claim is greater than what the company paid out, you can claim that difference. A good rule of thumb is to expect 1/3 of that difference as money back on your tax refund.
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Beaverhunter
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Re: How are per diems supposed to be paid out?

Post by Beaverhunter » Mon Apr 20, 2015 4:35 pm

I'm assuming your under federal and not provincial laws. This site below should give you some direction. As per this site, your granted $51.00/ day given your away from your base for 12hrs or more. If your company doesn't give the full amount of this daily per diem when away from your home base for 12 hrs. You can claim only 50% of remainder. Hope this helps.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... s-eng.html
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blockheater
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Re: How are per diems supposed to be paid out?

Post by blockheater » Tue Apr 21, 2015 8:25 am

Beaverhunter wrote:I'm assuming your under federal and not provincial laws. This site below should give you some direction. As per this site, your granted $51.00/ day given your away from your base for 12hrs or more. If your company doesn't give the full amount of this daily per diem when away from your home base for 12 hrs. You can claim only 50% of remainder. Hope this helps.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... s-eng.html
I stand corrected, and this sounds about right! :)
I remember claiming the simplified method, when I used to benefit from making the claim.
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ScudRunner
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Re: How are per diems supposed to be paid out?

Post by ScudRunner » Thu Apr 23, 2015 2:26 pm

This is the only way they should be

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