Everything You Need to Know About Per Diem and Stipend Housing

Admin
Published Date: 2023-08-09

When you offer corporate housing, you get tenants of all kinds. Stipend and per diem housing may be appropriate in some of these cases. It is used by the military, government employees, and some medical professionals to pay for accommodations when away from home.

However, these housing pay options are different and work in unique ways. We’ll explain everything you need to know so you can offer corporate housing to anyone who needs to take a business trip to another city.

The Differences Between Stipend and Per Diem

The biggest difference between stipend and per diem comes down to the small details. Per diem means “per day.” A worker is provided with a daily allowance to cover the expenses that come up when traveling for work.

Stipends are fixed amounts paid as allowance or salary to cover travel. Rather than being paid daily, stipends are typically paid out once a month or every week. It is often paid along with salary so the stipend is paid out during the period it covers.

These two payment options aren’t the same but are very similar. Each has a different taxation and management style associated with it.

Who Has Per Diem Rates?

The military, government, and some agencies offer per diem rates for corporate housing. The State Department offers this to some workers who travel, whether internationally or within the country. The Department of Defense sets the rates for civilian workers and personnel.

Paying a flat rate is simpler for the employer. The person traveling needs to decide how to spend it on accommodation and other needs.

What About Stipend Rates?

Stipends are often used in the private sector. This includes gas and oil workers, clergy, contractors, academics, and medical professionals, along with others who work away from home or need to travel. Stipends are often for only housing and are quoted in daily, weekly, or monthly amounts.

For a worker who uses stipends, it’s important to know what the policies are and which things that money can be used for and which it cannot.

Knowing the details about stipend and per diem ensures your corporate housing is ready for visitors from the government, military, and more. If you’re ready to market your properties for these two types of pay, Corporate Housing by Owner offers all the resources and services you need. Post a listing and take care of business efficiently.