Business travel is often necessary for many companies, but it can also be expensive. Knowing the average per diem rate for business travel is important for companies that need to budget their travel expenses.
The per diem rate is a daily allowance that covers the cost of meals, lodging, and incidental expenses while on business trips. This amount varies depending on the location of the trip and is paid in addition to any other travel costs like airfare or rental cars. The federal government sets the maximum allowable per diem rate for each city in the US and US territories.
The rates are based on surveys of local hotels and restaurants to determine what a reasonable daily cost would be for meals and lodging in each city. The rates are updated every October and can vary significantly from city to city. Generally speaking, cities with higher costs of living will have higher per diem rates than cities with lower costs of living.
The current average per diem rate for business travel in the US is $119/day. This includes $91 for lodging and $28 for meals and incidentals, though individual cities may have different rates. Some companies may choose to offer higher or lower rates than this, depending on their own budgeting needs.
Business travelers should keep track of their expenses while on the road so they can take full advantage of the available per diem rate. Any expenses that meet or exceed the per diem rate should be submitted along with receipts or documentation to be reimbursed by their employer.
In conclusion, it’s important for businesses who send employees on business trips to understand what the average per diem rate is so that they can budget accordingly. The current average per diem rate for business travel in the US is $119/day which includes $91 for lodging and $28 for meals and incidentals. Business travelers should keep track of their expenses while away so they can take full advantage of their employer’s allotted reimbursement amount.