1. What is IRS Per Diem Rate?

The IRS per diem rate is the daily allowance for lodging, meals, and incidental expenses when traveling for business. Employers can use these rates to reimburse employees tax-free.

2. How Does the Calculator Work?

The calculator uses the simple per diem formula:

Where:

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

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

3. Importance of Per Diem Calculation

Details: Accurate per diem calculations ensure proper reimbursement for business travel while complying with IRS regulations for tax-free payments.

4. Using the Calculator

Tips: Enter the number of travel days and the applicable per diem rate. The rate can be the standard federal rate or a company-specific rate that doesn't exceed IRS limits.

5. Frequently Asked Questions (FAQ)

Q1: What are the current IRS per diem rates?
A: Rates vary by location and time of year. Check the GSA website for current rates.

Q2: Are per diem payments taxable?
A: Payments at or below the federal per diem rate are generally non-taxable. Amounts above may be taxable.

Q3: Can companies use their own per diem rates?
A: Yes, as long as they don't exceed federal rates for tax-free treatment.

Q4: How are partial travel days calculated?
A: Typically, 75% of the daily rate is used for partial days (first/last day of travel).

Q5: Does per diem cover all travel expenses?
A: It covers lodging, meals, and incidental expenses. Transportation costs are separate.