Per-diem Rates Increase Slightly for Business Travel

If you are an employer and you have employees that travel for your business, then you can pay them a per-diem amount instead of reimbursing them for the actual expenses.

If the rate paid does not exceed the IRS-approved maximum (the per-diem rate is broken down by area), and the employee provides simplified substantiation (time, place and business purpose), then the reimbursement is not subject to income- or payroll-tax withholding and isn’t reported on the employee’s W-2.  Receipts of expenses are not required.

These rates have increased slightly, so please click on the link above to make sure you are using the correct per-diem amount.  Also, some localities have switched from high-cost areas to standard-cost areas and vice-versa.

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