Please help! How to pay perdiem to a subcontractor?

[boothru]

I am company A recruiting a consultant from company B to place on my client's project. I want to pay part of the billing as perdiem directly to the consultant although he/she is an employee of Company B. I know I can pay as perdiem but want to confirm if I can and upto howmuch I can pay. How would I show it in my accounting?

Gurus, please help.

 

[boothru]

Thanks for the reply. I guess I was not clear in my post. I am not trying to find a way to save taxes but I wanted to pay expenses as perdiem to the subcontractor(Company B's employee). I think there is a limit to which the company can pay an amount as perdiem, without having to produce reciepts. I have seen companies doing this.

Questions are

1. Whether or not we can pay expenses as perdiem to the subcontractor directly who is not a direct employee but employee of company B, with whom we have a contract.

2. If yes, upto what amount can be paid as perdiem without requiring receipts? How to show them in our accounting? I guess if we need to pay more than the limited amount, we will have to pay taxes on the payment.