Per diem is an allowance paid to your employees for lodging, meals, and incidental expenses incurred when travelling. This allowance is in lieu of paying their actual travel expenses. 2.
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For example, if an employee travels to a state where per diem is $139 per day, they will receive $130 for each day they stay there on business. For a four-day business trip, that would equal $520 in total.
You can provide the employee with the per diem amount of money up front, perhaps by giving the employee cash or assigning them a company credit card. Some companies also allow the employee to keep any amount they don't spend. Or, you can reimburse your employee when they return.
FY 2023 CONUS Per Diem Rates for Federal Travelers ReleasedThe M&IE per diem tiers for FY 2023 are unchanged at $59-$79, with the standard M&IE rate unchanged at $59.
According to the Federal Travel Regulation (FTR), travelers are entitled to 75% of the prescribed meals and incidental expenses for one day travel away from your official station if it is longer than 12 hours.
The 2023 standard per diem for most of the US is $157, which breaks down to $98 for lodging and $59 for meals and incidentals. It's important to know that these rates fluctuate depending on the destination of travel, and they only cover the 48 states of the continental United States and the District of Columbia.
The word per diem means per day, or for each day. Per diem is a daily allowance for meal expenses while in travel status that includes an overnight stay. Per diem is not given for same day travel. Per diem supplements the cost of meals and tips. Receipts are not required to receive this per diem allowance.