1. What is Per Diem?

Per Diem refers to a daily allowance provided to cover expenses during business travel. It's typically calculated by multiplying a daily rate by the number of travel days.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Rate \) — Daily allowance rate in USD
• \( Days \) — Number of travel days

Explanation: The calculation multiplies the daily rate by the number of days to determine the total reimbursement amount.

3. Importance of Per Diem Calculation

Details: Accurate per diem calculation ensures proper reimbursement for business expenses while maintaining compliance with company policies and tax regulations.

4. Using the Calculator

Tips: Enter the daily rate in USD and the number of travel days (can include fractions like 0.5 for partial days). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in per diem rates?
A: Typically covers meals, incidental expenses, and sometimes lodging if not separately reimbursed.

Q2: Are per diem payments taxable?
A: Generally not if within federal rates, but amounts above the standard rates may be taxable.

Q3: How are partial days calculated?
A: Many organizations use 75% of daily rate for partial days, but policies vary.

Q4: Where can I find standard per diem rates?
A: The U.S. General Services Administration (GSA) publishes standard rates for locations.

Q5: Can per diem be used for local travel?
A: Typically only for overnight travel away from the tax home.