What is Per Diem Pay?
A per diem is a daily sum of money granted to employees by a firm to meet certain costs associated with business travel. These costs include of housing, meals, and miscellaneous costs.
Are Per Diem Taxable?
As long as they satisfy specific requirements, per diem payments are not regarded as earnings and are therefore exempt from taxation. If any of the following statements apply to you, taxes will be due: The amount received exceeds the federally permitted per diem rate. You didn’t give your employer an expense report.
What is the Per Diem Rate?
Obtain a copy of your company’s policies and procedures for expenditure reimbursement, and check the applicable amounts for the disputed expenses. The daily allowance for meals when traveling, for instance, might be $50.
As per your company’s policy, determine which days are qualified for per diem rate reimbursement. This can change a little. For the instance, if you fly out in the evening on a business trip, remain at your destination for two days, and then fly out again in the morning of the fourth day, this may be seen as anywhere between two and four days.
Divide the number of days by the per diem rate. For instance, on a three-day business trip with a $50 per diem lunch allowance, the overall per diem on a three-day business trip with a $50 per diem, meal expense allocation is $150.
How Much is Per Diem?
The usual per diem tariff of $157 ($98 housing, $59 M&IE) applies to the majority of CONUS (about 2,600 counties).
It is calculated in the following way. Add the number of days to the per diem allowance. For instance, the total per diem on a three-day business trip with a $50 per diem meal expense allocation is $150.