If you would like to be paid per diem for the first 40 hours of each week, you must be eligible based on all government requirements. You will be required to sign a statement of eligibility.
Unfortunately, if the IRS determines in a future audit of your personal taxes that you were ineligible, Synesis Inc becomes liable for company portions of payroll taxes like Social Security and Medicare (FICA). In consideration of that potential, the fixed Synesis markup will be increased by that amount, 7.65% of the pay rate.
Even with this additional markup, per diem is still a worthwhile tax strategy for you. Assuming your income tax rate is 28%, your taxable income would be reduced by 28% plus the FICA employee contribution amount of 7.65%. Synesis requires the 7.65% as an IRS hedge, but you would still save a very substantial 28% on federal withholding. The impact of this requirement is no different than paying yourself per diem from your own corporation.
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