I am an employee of a subcontracting company. One question I have is if it is legal for the company to take per diem pay off of my check so I do not get taxed on it, but not actually pay me that per diem. For example, I get paid by the job, so say I billed $500 for jobs that week, and my per diem pay is $200 for the week. My pay stub will show that I billed $300 and that is what taxes are taken out of. After taxes are taken out, the other $200 I billed is added back onto my check. The company does not actually pay any per diem pay out of their pocket, they just use it as a tax break.
The other question I have is regarding expenses of the job. The company made everyone employees this year (before we were contractors). The issue is I still pay all my own expenses, work truck (required to do the job), tools, and gas. The company says I can use them as a tax write-off, but I would be better of being reimbursed for these things. Since I am now an employee why should I be paying for anything? The company I work for is based out of South Dakota and I currently work in Minnesota.