If you need a job done that's not located near your business, it can be a financial and administrative burden to pay out per diems (out-of-pocket expenses) to your employees. But if you use a temp agency and their temporary workers instead, you can avoid this. Therefore, we find that it can often be an advantage for you as an employer to use temporary workers instead of your permanent employees when work needs to be done away from your employees' permanent residence.
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What is outlay money?
Expense money or per diem, as it's also known, is a tax-free travel allowance for your employees when they work temporarily away from their own home. This travel allowance typically consists of per diems for transportation, lodging, food and other small necessities.
Expense money is paid as compensation for the inconvenience the employee suffers because they can't get home in their own bed. This is, of course, to ensure they have somewhere to stay and eat while they're away.
The rates in 2023 are:
Accommodation 238kr per day
Food 555kr per day
A total cost of 793kr per day.
Want to hear about the benefits of using a temp agency?
When is an employee entitled to expense money (per diems)?
An employee is entitled to per diems when they travel to another location for work. This could be as a result of a secondment by the company, or when they need to attend a meeting or other work-related events. Usually, the company pays these per diems directly to the employee.
Use a temp agency and avoid paying out-of-pocket expenses.
When your company chooses to use a temp agency, you can avoid many administrative burdens and expenses. This includes the payment of out-of-pocket expenses (per diems) to your own employees.
This is because the temp agency manages everything from the temp's salary, social security contributions, vacation pay and other expenses. Since the temp agency hires the temps locally, they don't have this inconvenience and therefore don't need compensation. Therefore, it's often a good idea to use a temp agency in these situations.
Do what many other businesses do.
Using temporary workers for assignments at a temporary workplace away from your business is widely used in many industries. When you work with a temp agency, you get a flexible solution that allows you to work in multiple locations around the country. This also means you'll find it easier to say yes to an order when you have us behind you.
Get in touch with us if you have any questions.
If you want to learn more about the benefits of using a temp agency or have any questions for us, please contact us. We are always ready with advice, guidance and counseling.
