Book a demo

Attention recruiters placing traveling contractors: The per diem rates under the High-Low Substantiation Method have been increased for Fiscal Year 2015.

“Per diem” literally means “per day.” It is a daily rate that employers may choose to pay employees on business travel rather than reimbursing them for the actual cost of each expense they incur. Contractors may be paid per diem rate when their assignment is far from home and requires the contractor to maintain a second residence.

The High-Low Substantiation Method is a common method for determining contractor per diem rates. In this method, the IRS sets a standard or “low” daily rate that applies to most localities and a “high” rate for large cities that generally have a higher cost of living, such as Boston, New York City, and San Francisco.

According to Notice 2014-57, the rates increased October 1, 2014, for FY2015. The low-cost-area per diem went from to $170 to $172 per day. The low rate for Meals & Incidentals, or ME&I, remains $52 as it was in FY2014. In high-cost localities, the daily rate increased to $259 ($65 ME&I) from $251. The rate for lodging only is now $120/day in low-cost areas and $194 in high-cost localities.

Are you stressed about handling the administrative work of managing contract workers? Use FoxHire’s Contract Staffing Services today to relieve your stress, and help you get back to placing candidates.

You may also be interested in…


The Case for EOR: For Midsize Enterprises

As mid-size enterprises grow, they face the dual challenges of scaling their...

Case study

New Zealand Based Company Expands to USA with FoxHire

How can an international company expand to America and hire new employees?...


Conversion Fees for Dummies: A Guide for Recruiters

In this webinar, we break down the often misunderstood topic of conversion...

A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.