I have a question about per diem?

Question

I've been talking to a potential employer about my expected compensation. My expectation is say, $ X/hour on W2, the employer says he is willing to offer $(x-10)/hour as pay, again on W2 and $10/hour as per diem.

I am trying to better understand how per diem amount is determined. Based on my research I understand that per diem is not calculated based on the pay or the number of hours worked.

So, here is my question - how is the amount determined for per diem, I am not sure how the employer has fixed the amount to be $10? Is it based on the location and/or any other factor? Also, can it be hourly?

Answer 1

I think its kind of unusual that its hourly. I wonder if the per diem can be excluded from income because its reimbursement for personal business expense you incurred, as long as you have receipts for your travel..?