Table of Contents
Introduction
Understanding Per Diem
The Truth about Per Diem
How to Charge for Per Diem?
Typical AV Roles Eligible for Per Diem
Common Uses and Scenarios
Benefits of Per Diem for AV Professionals
Challenges and Considerations
Conclusion
1. Introduction
Hey guys! I've seen a lot of confusion when it comes to per diem so I wanted to share what I've learned over the past 10 years with experience, research, and hard lessons.
2. Understanding Per Diem
What is Per Diem?
Per diem, a Latin term meaning "per day" is a daily allowance provided to employees to cover expenses incurred while working away from their home base.
In the audio-visual (AV) industry, this is especially common due to the nature of the work, which often requires travel to different locations for events, conferences, and installations.
In the AV industry (Client / Production), a per diem provides a standardized daily allowance to cover living expenses for employees traveling for work. This helps the freelancer/contractor as its convenient and they have a budget set for the week. It also simplifies expense for management, ensures predictable costs, reducing the need for detailed expense reporting and administrative burden.
Freelancers usually receive the per diem at the start of their trip. Some companies may also provide the per diem as a reimbursement after the trip or even daily, but advance payments are somewhat common to ensure freelancer/employees have funds available for their daily expenses.
3. The Truth About Per Diem
Here it is:
A Per Diem is not a legal requirement for companies, despite the talk of being standard. This means that while many companies choose to offer per diem, it is ultimately at their discretion and not a legal obligation.
Many companies adopt per diem policies to manage expenses effectively and maintain freelancer/employee satisfaction. In other words, if a company is trying to attract or retain certain talent, they will likely include per diem in the contract or agreement, and sometimes even use it as a tool.
4. How To Charge for Per Diem ?
Alright, now that we know the truth, let me show you how to deal with some of these scenarios. Here is the link if you want the website that companies use as a benchmark:
Before charging a company for per diem, freelancers should first understand the company's policies regarding travel expenses, this can be found with the person that usually hires you, through documentation that was emailed to you, a simple text message with information on how it works, or through how you negotiate your contract.
Now, if a company does not have a specific per diem policy but told you that you can charge per diem, visit and research the below link for standard rates for the industry and locations. https://www.gsa.gov/travel/plan-book/per-diem-rates
The U.S. General Services Administration (GSA) provides standard per diem rates for different cities, which can serve as a useful benchmark. Additionally, industry forums and networks can provide insights into what other freelancers charge for similar work.
5.Typical AV Roles Eligible for Per Diem
Roles that often receive per diem in the AV industry include:
AV Technicians
Project Managers
Audio & Visual Engineers
TRAVELING Freelancers and Contractors
6. Common Uses and Scenarios
In the AV industry, per diem is primarily used for roles that require travel. It is less common for local work unless specifically arranged with the client or project manager.
Common uses and scenarios include:
Traveling for conferences and trade shows
Different city form home base but within the same state
Different state, but negotiated a price or rate with client or project manager
Remote events and productions
Quick Note:
International rates can be higher due to increased living costs.
7. Benefits of Per Diem for AV Professionals
Financial Benefits
Provides a predictable daily allowance for expenses
Reduces the need for out-of-pocket expenses
Simplifies the reimbursement process
8. Challenges and Considerations
Potential Issues with Per Diem
Insufficient rates for high-cost locations
Mismanagement of funds by freelancer/employees
Differences in per diem policies between companies
Tips for Managing Per Diem Effectively
Understand company policies and guidelines
Keep detailed records of all expenses
Plan accommodations and meals within the per diem budget
Stay tuned for our next article, where we’ll dive deeper into Per Diem: How To Most Effectively Use Your Budget, ensuring your food needs are always a met.
9. Conclusion
Recap of Key Points
Per diem is not mandatory but more as as an incentive to travel.
Per diem is a daily allowance for travel expenses in the AV industry.
Rates vary based on location, duration, and company policies.
Final Thoughts
Understanding per diem is essential for AV professionals who frequently travel for work. While it's not a legal requirement, per diem serves as a valuable tool for managing expenses and ensuring financial stability during assignments. By knowing how to charge for per diem and effectively manage it, freelancers can better plan their budgets and focus on delivering high-quality work. Remember, clear communication with your clients and understanding company policies are key to making the most of per diem allowances.
As always, stay informed, stay organized, and your AV journey will be smooth and successful.
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