- What is Per Diem Work - December 25, 2021
If you have grown tired of your 9 to 5 schedule and work in construction, education, or the medical field, it is essential to know that you have options.
Per diem work or “for each day” gives you the flexibility to be home with your children, have hobbies, or even take on multiple jobs to pay off debt. You can also make more money, gain diverse experience, and test out different positions before committing.
While the benefits can outweigh the drawbacks for most, per diem isn’t for everyone. Check out our in-depth guide below to see if per diem work is proper for you.
What is Per Diem Work?
The Latin phrase per diem means “for each day,” with per meaning “for each” and diem meaning “day.” Therefore, per diem is most applicable regarding temporary employment in the medical, education, and construction industries.
Completing a per diem job gives you the flexibility to have multiple job experiences, additional income, and a healthy work/life balance. Per diem jobs are completed on an as-needed basis, and you will receive payment for each day you work.
How Per Diem Jobs Work
Per diem jobs are usually found in high-need areas such as healthcare. Per diem nurses, for example, can fill in from one to several days to cover an unexpected gap in coverage.
In addition, workers benefit from taking per diem jobs since filling in last-minute can pay considerably more than a typical 9 to 5, especially if that coverage falls on a major holiday.
Where to Find Per Diem Jobs
The job opportunities for per diem work can vary by industry. However, there are three main ways to search for per diem jobs.
- A worker interested in per diem can seek out a hiring office in their field (i.e., a local hospital)
- Skim through the printed classifieds looking for per diem listings
- The candidate can also keyword search online for “per diem.” Job boards are a good source for per diem work on sites like ZipRecruiter and Indeed.
Per Diem Benefits
- Earn extra money to pay off debt, go on vacation, or make a large purchase
- Get paid a higher wage than a typical 9 to 5
- Staffing companies can provide benefits like healthcare and a 401K
- Learn a new skill
- Test out a new workplace before committing to a full-time job there
- Work for multiple facilities to vary your job experience, surroundings, and schedule
- Expand your overall knowledge and find a new passion
- Flexibility in your schedule to spend more time with family, hobbies, friends
Per Diem Drawbacks
- You will often be asked to work holidays
- It can be challenging to balance a full-time job and per diem work
- Most per diem workers do not receive benefits or paid time off
- Although pay is higher, it is inconsistent and therefore could be lower than a full or part-time job
- Hours can vary significantly from one week to the next. For example, you could work 40 hours one week, and only eight the next
- No pre-set schedule must be on-call to receive work
Per Diem Jobs
Several industries need per diem workers to fill unexpected gaps, and such work is only expected to increase. A few of the most popular job categories include:
Admission Coordinator
You can work as a per diem admission coordination in a medical setting. There is a broad range of options, from working in hospitals to mental health clinics to remote work. Depending on the job and facility, a college degree or certification may be needed to secure a per diem position.
Construction Worker
When a construction company takes on more projects than their full-time employees can handle, they often hire per diem workers to get the job done on schedule. As a result, you can be responsible for all finishing work, including painting, moving materials, and general building tasks.
Delivery Person
Delivery per diem drivers is most likely to have work around the holidays. They act as full-service delivery workers from loading to unloading packages, planning routes, and gathering customer information.
Midwife
As a per diem midwife, you will be helping healthy women deliver babies at both birthing facilities and the woman’s home. You may also help with baby care after the birth. Since labor can happen spontaneously, you will most likely be on call 24 hours.
Nurse
Per diem nurses can assist hospitals and other medical facilities when they become overcrowded with cold and flu season, natural disasters, or global pandemics.
Depending on the nurse’s credentials, the tasks can be slightly different. Nurses take vitals, administer tests and medication. Nurse practitioners order and review tests and can prescribe meds.
Pharmacist
Per diem pharmacists have the same responsibilities as full-time pharmacists, such as refilling prescriptions and providing patient education. However, you will most likely be working irregular shifts such as pharmacist break times or nights.
Reporter
News moves fast, especially with social media. Media outlets like newspapers and news stations hire per diem reporters to cover breaking news, elections, natural disasters, and more. In addition, you may be responsible for interviews, in-depth research, photographs, or video footage.
Warehouse Worker
Per diem warehouse workers are brought in when the warehouse is overstocked and under-organized. You will most likely be unloading extra products, placing items in the correct locations, preparing articles for shipping, and operating machinery.
Per Diem Work
What is the Difference Between Per Diem vs. Part-Time?
Per diem workers are always treated on an “as needed” basis, mainly called in to cover full-time employee vacations, sick days, personal days, etc. At the same time, part-time workers can receive a work schedule in advance. That work schedule will have fewer hours than their full-time counterparts.
What’s the Difference Between Per Diem vs. Independent Contractor?
While both per diem and independent contractors are asked to work on an “as-needed” basis, per diem workers are treated as regular company employees. As a result, per diem employees receive W-2 income, are entitled to minimum wage and overtime pay.
Independent contractors do not receive any benefits or have taxes taken out by the company. Freelancers are responsible for their taxes through a 1099NEC.
Are Per Diem Workers the Same as PRN?
Technically yes. Some people use the term PRN, and some use per diem. PRN stands for “pro re nata,” Latin for “as needed,” and per diem stands for “by the day.” Both per diem workers and PRNs are not scheduled and are paid a daily rate for their services (instead of an hourly or salary rate).
Do You Get Paid More as a Per Diem Employee?
Generally yes. Since per diem employees do not have a fixed schedule and are called in on short notice, they typically get paid more than part or full-time employees. However, per diem employees rarely receive benefits, so the extra pay may only offset insurance, retirement funds, etc.
Per Diem Business Expenses
Per diem is not only used as a term for an as-needed worker but is also utilized for filing business expenses. For example, if employees travel for business, a company can pay upfront or reimburse them for costs incurred, including lodging, gratuity, dry cleaning, and Meal & Incidental Expenses (M&IE).
FAQ: Per Diem as a Business Expense
Answer: Yes. Per diem can also be used to describe business expenses. A per diem payment covers the daily allotment for travel expenses. A business may give its employee a per diem rate for each day of travel which pays for lodging, dry cleaning, gratuities, and M&IE.
Tip: An employer can use per diem to pay for employee travel expenses. A self-employed worker can only use per diem to pay for meals.
Answer: No. All mileage reimbursements must be processed separately. Businesses and employees seeking mileage compensation should consult the IRS standard mileage rates.
Answer: Although employees do not need to submit original receipts for a per diem approval, they must complete an expense report within 60 days. (Failure to meet this deadline will allow the per diem payments to become taxable income.)
Employees should include the following information in their expense report:
Date, place, times
Business purpose
Clarification if the rate includes lodging or just M&IE
Businesses can provide employees with a set per diem before travel, so they do not have the money upfront. However, some companies offer reimbursement, so it’s best to ask before your business trip so you know what to expect.
Per Diem Rates
There are two different ways a company can choose a per diem rate, by city-specific rates or high-low rates.
The city usually calculates City-specific rates the employee is staying in. Using these rates helps account for the actual costs the employee will incur in the specific town.
While this may seem like a logical solution, it can be not easy if your employees travel frequently or to various cities.
Each city will have a different per diem, and the cost can vary depending on the time of year or days of the week traveled. If a city is not listed, a standard rate is issued. For 2021, the standard rate is $96 per night for lodging and $55 per day for meals.
To simplify the process, you can choose high-low rates which group cities into high-cost areas and common areas. Rates can be calculated on the GSA.gov website.