Federal Guidelines for Per Diem Pay

by Mike McQuillian; Updated September 26, 2017

Per diem pay is money given to employees for meals, lodging and incidental expenses while travelling, according to the Internal Revenue Service. This money is given for each day of travelling rather than paying for individual travel expenses.

Expense Reports

Expense reports may be needed for tax purposes, according to the IRS. This report should include the date, place and business purpose of the report. Include receipts for lodging in these reports as well.

Taxes

Employees may be taxed for per diem pay if no expense report is filed with the employer, according to the IRS. They may be taxed if expense reports are incomplete when filed or if the employer gives more than the allowable federal rate for per diem pay.

Meals and Incidental Expenses

The IRS states that all meals are covered by per diem pay. Room service, laundry costs and tips given to servers or motel/hotel employees are covered as well.

About the Author

Mike McQuillian began writing professionally for the Internet in 2005. He is an associate editor for YabYum Music, a local music Web site focusing on Arizona bands. He received his Bachelor of Arts in English literature from Arizona State University in 2005.

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