Are Per Diem or Flat Sum Payments Considered Taxable Wages in California?
March 3, 2022
The state of California considers wages as compensation for an employee’s personal service. Companies may pay employee compensation by check, cash, or the cash value of non-cash payments. Wages are taxable by the federal government and the state of California. However, per diems are generally not considered wages. Therefore, when handled correctly, per diems are not considered taxable wages. There