FY 2008 Domestic Per Diem Rates—Effective October 1, 2007 These articles are intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this Website is intended to provide general information on matters of interest in the areas of tax and accounting and should not be acted upon in your specific situation without further details and/or professional assistance. Users are encouraged to contact us regarding specific situations.
Instead of reimbursing employees' actual substantiated expenses for away-from-home lodging and meals and incidental expenses (M&IE), an employer can reimburse them at a rate that doesn't exceed the per-diem rate paid by the federal government to its workers on travel status. The rate varies with the locality of travel. If employees provide simplified substantiation (time, place and business purpose), the per-diem reimbursement isn't subject to income- or payroll-tax withholding and isn't reported on the employee's Form W-2.
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