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The per diem rates in lieu of the rates described in Notice 2021-52 (the meal and incidental expenses only substantiation method) are $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS. 3.
For many years, instead of using actual GSA per-diems, employers have been able to use a simplified high-low per-diem method. Under the high-low method, there is one per-diem rate for all high-cost areas within the continental U.S. and another per-diem rate for all other areas.
For meals and incidental expenses (MIE), the standard GSA per diem tier rate is $55 to $76 per day, depending on where youre traveling. In some cases, the per diem rate may be higher if the citys cost of living is higher than the average. On its own, the standard rate for incidental expenses is $5 per day.
For example, a per diem payment for an information technology (IT) consultant working for the week in another city could be $200 per day$100 for accommodations, $50 for food, and $50 for incidental costs.
For meals and incidental expenses (MIE), the standard GSA per diem tier rate is $55 to $76 per day, depending on where youre traveling. In some cases, the per diem rate may be higher if the citys cost of living is higher than the average. On its own, the standard rate for incidental expenses is $5 per day.
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Per diem is a substitute for using an actual expense reimbursement method. Instead of paying employees back the exact amount they spent on a trip (actual expense), you provide the per diem rate. You can provide per diem in advance before the employee travels for business.
Per diem is an allowance for lodging, meals, and incidental expenses.
The report must include: The business purpose of the trip, The date and place of the trip, and Receipts for lodging (if using the meals-only per diem rate). The employee must file the expense report with the employer within a reasonable period of time (60 days).
Per diem is taxable if an employee does not provide or leaves information out of an expense report. It is also taxable if you give the employee a flat amount. The excess is taxable if you give an employee above the maximum per diem allowance.
The per diem rate is set by the IRS. The current rate for 2023 (last updated October 1, 2021) is $69 per full day and $51.75 per partial day in the Continental US. You may hear the amount of the deduction quoted as $55.20 per full day.

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