What is per diem work?

Per diem work refers to employment on a "per day" basis, rather than a full-time or part-time salaried position. It's often temporary or short-term, but can sometimes be recurring. Here's a breakdown of key aspects:

Key Characteristics:

Payment: Employees are paid for each day they work, not on a weekly or monthly salary. The daily rate can vary based on factors like experience, job type, and location.
Flexibility: Per diem work often offers a high degree of flexibility in terms of scheduling and work availability. This can be appealing to those seeking work-life balance or supplemental income.
No Benefits: Typically, per diem employees do not receive benefits such as health insurance, paid time off, retirement plans, or other perks offered to full-time employees. This is a significant consideration.
Temporary Nature: While some per diem positions can lead to longer-term opportunities, they are generally considered temporary assignments.
Variety of Industries: Per diem work exists across numerous industries, including healthcare (nurses, therapists, etc.), education (substitute teachers), hospitality (event staff), and administrative support.

Advantages of Per Diem Work:

Flexibility: Control over your schedule and the ability to pick and choose assignments.
Supplemental Income: A great way to earn extra money alongside other commitments.
Variety of Experiences: Exposure to different workplaces, tasks, and teams.
Skill Development: Opportunities to learn new skills and expand your professional experience.

Disadvantages of Per Diem Work:

Inconsistent Income: Income is unpredictable, depending on available work assignments.
Lack of Benefits: No access to employer-sponsored health insurance, retirement plans, or paid time off.
Job Security: No guarantee of ongoing work.
Less Stability: Can be challenging to plan long-term financially.

Tax Implications:

Per diem employees are typically considered independent contractors or 1099 employees, meaning they're responsible for paying self-employment taxes and estimating their quarterly taxes. This can be more complex than having taxes withheld from a regular paycheck.

In Summary:

Per diem work can be a good option for individuals who value flexibility and supplemental income but understand the trade-off of inconsistent income and lack of benefits. It's crucial to carefully weigh the advantages and disadvantages before deciding if it's the right fit for your personal and financial circumstances.