Per Diem for Rent on H1B


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Hi All,


I am currently on H1B working in California and my employer is from Iowa. I have leased an apartment in California and my employer would want me to expense the rent (1700$) and show it as per-diem. My base Salary on LCA is 70000, He says he would still show 70000 on the paycheck and in addition to that he would send a cheque for the rent? Can he do that? Is it legal? If not rent what else can be expensed?


Please Suggest!!


Thanks All

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Per diem is for temp assignments when you are away from your principle residence. A per diem would cover expenses other than rent as well. 


Do you maintain a leased or owned residence in Iowa where you or your family live when you are not working in CA? If not, your employer is trying to avoid paying required taxes.  You also have to pay taxes on that sum,  Do NOT participate in this. Find an employer who is not trying to commit tax fraud.


(Look up Al Capone. If you think immigration is bad, get crosswise with the IRS.)

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