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Do you need to own a home to receive per diem when traveling?

Do you need to own a home to receive per diem when traveling?

Full question:

Concerning Per Diem Law, when going out of state do you have to own your home to get per diem or can you be a renter and give up your apartment and go and still get per diem?

Category: Employment
Subcategory: Benefits
Date: 04/07/2025
State: Kansas

Answer:

Typically, an organization’s human resources department sets per diem rates for employee travel reimbursements and outlines policies for submitting travel expense forms and documenting approved expenses. Per diem amounts are usually established in advance. Employees can often choose to claim actual expenses incurred or use set per diem rates, or combine both methods. For instance, an employee may claim a per diem for meals while claiming actual costs for lodging, provided lodging expenses do not exceed the per diem allowance for that category.

It is crucial for a company to define clear per diem amounts and travel policies before employees are hired or begin traveling. Companies must decide on various reimbursements, such as personal phone calls while traveling or rental lodging. Some firms may offer additional allowances for housing as a perk to attract and retain employees, especially in competitive labor markets. Government employers have per diem rates established by federal law.

Your rights regarding per diem claims may depend on the terms of your employment contract or union agreement. It is essential to review these documents to understand your rights and obligations concerning per diem payments. If you consider legal action regarding a dispute, you may want to familiarize yourself with contract law principles, including breach of contract and the potential remedies available.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What qualifies you for per diem?

To qualify for per diem, an employee typically must be traveling for work purposes as defined by their employer's travel policy. This often includes being away from their primary residence for a certain period. Employers set specific guidelines on what expenses are covered and the rates for meals, lodging, and other incidentals. It's important to check your company's policy and any applicable contracts to understand your eligibility.

What is a per diem travel policy?

A per diem travel policy outlines the reimbursement rates and rules for employees traveling for work. It specifies how much employees can claim for meals, lodging, and other expenses while away from their primary residence. The policy may also include requirements for submitting expense reports and documentation. Companies establish these policies to manage travel costs and ensure consistency in reimbursements.

Is per diem based on location?

Yes, per diem rates are often based on location. Different areas have varying costs of living, which influences the amount an employer will reimburse for meals and lodging. Employers may use federal or state guidelines to determine these rates, which can change based on the travel destination. Always check your company's travel policy for specific rates related to your travel location.

What is proof of residence for per diem?

Proof of residence for per diem typically includes documentation that verifies your primary home address. This can be a utility bill, lease agreement, or government-issued ID showing your name and address. Employers may require this documentation to establish your eligibility for per diem when you are traveling for work and away from your primary residence.

What is proof of residency for per diem?

Proof of residency for per diem purposes usually involves providing documents that confirm your primary residence. Acceptable documents may include a lease, mortgage statement, or utility bill with your name and address. Employers may request this information to validate your claims for per diem when traveling for work-related activities.

What are the IRS rules about per diem?

The IRS allows employers to reimburse employees for travel expenses using per diem rates. These rates must be reasonable and reflect actual costs incurred for meals and lodging. The IRS provides guidelines on the maximum allowable per diem rates based on location. Employers must ensure that their per diem policies comply with IRS regulations to avoid tax implications for employees.