Reasonable business-related expenses for travel, lodging and meals can be paid to employees using a per diem rate or reimbursed for actual expenses. Per diem is a flat rate under an accountable plan for business travel away from home.
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Generally, a company will cover transportation, housing and food, but some companies offer more extensive benefits, such as gym memberships, entertainment allowances and free flights for visiting family members.
Of course, costs differ significantly between international travel and domestic travel. Research from that same year collated by Expert Market showed that the average cost of a domestic trip in the US was $990, while the average for an international business trip was $2525.
Examples of deductible travel expenses include airfare and lodging, transport services, cost of meals and tips, and the use of communications devices. Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.
Generally, employees should be compensated for all time spent traveling during regular business hours, and under the FLSA, travel time associated with overnight stays is generally considered compensable work time when it “cuts across the employee's workday.”
You can claim business travel expenses when you're away from home but home doesn't always mean where your family lives. You also have a tax home—the city where your main place of business is located—which may not be the same as the location of your family home.
How do I ask for reimbursement of travel expenses? Politely approach your supervisor with an itemized list of expenses incurred or expected during the travel and offer a clear reason why this travel is critical to your work and the responsibility of the company.
Typically, travel time pay for non-exempt employees is obligatory, applying to both salaried and hourly employees. Exempt employees are considered those providing professional or managerial work.