Per diem eliminates the need for employees to keep track of and submit receipts for individual expenses. This reduces the administrative burden on both the employee and employer.

Under IRS regulations for 2026, you generally do not need to provide receipts for individual meals or incidental expenses if your employer uses the federal per diem method. The per diem rate is a fixed daily allowance meant to simplify record-keeping for both the employer and the employee. However, you must still provide a timely expense report that substantiates the "time, place, and business purpose" of the travel. While receipts aren't required for the per diem portion, lodging is handled differently; if your per diem only covers "Meals and Incidental Expenses" (M&IE), you will still need a valid receipt for your hotel stay. Additionally, many corporate policies are more restrictive than the IRS guidelines and may require receipts for any expense over a certain threshold (e.g., $25 or $75) even when using per diem. It is critical to distinguish between "IRS-compliant" and "company-compliant"; always verify your specific corporate travel policy to avoid out-of-pocket losses during a business trip.