The standard per diem for business travel is a set rate that covers the cost of lodging, meals, and incidental expenses incurred during a business trip. It is typically based on the federal government’s General Services Administration (GSA) guidelines, which vary by state. The GSA provides a table of per diem rates for each city or county in each state.
When an employee travels on company business, their employer may provide a daily allowance to cover their lodging, meals and other incidental expenses. This allowance is known as per diem and is typically calculated based on the GSA rates. The rates are usually updated annually to reflect changes in local costs of living and eating out.
For those who are not employed by the federal government, the rate used to calculate per diem can be determined by using an online calculator such as the one provided by the IRS. This calculator will take into account factors such as location and duration of stay when calculating the appropriate rate for each trip.
How Is Per Diem Calculated?
The calculation for per diem is relatively simple: you simply multiply your daily rate by the number of days you will be away from home on business travel. For example, if your daily rate was $150 and you were going to be away from home for five days, then your total per diem would be $750 ($150 x 5).
What Are The Limits On Per Diem?
The IRS has set limits on how much an employer can pay an employee in per diem while they are traveling on company business. For example, if an employee travels more than 50 miles from home overnight they can receive up to 100% of their daily rate, however if they travel less than 50 miles then they can only receive up to 75%.
Conclusion:
What Is Standard Per Diem for Business Travel? The standard per diem for business travel is a set rate that covers the cost of lodging, meals and incidental expenses incurred during a business trip.
It is typically based on GSA guidelines which vary by state and must be calculated before being paid out to employees traveling on company business. The amount paid in per diem must also adhere to IRS limits depending on how far away from home an employee travels overnight.