Per diem is a Latin phrase that translates to "per day." In a business context, it refers to a daily allowance given to employees or agents to cover expenses incurred while traveling for work. This can include costs for lodging, meals, and other related expenses. Per diem rates can vary based on location and the nature of the travel, such as whether it is domestic or international.
Per diem allowances are commonly used in various legal contexts, particularly in employment law, tax law, and family law. In employment settings, per diem payments can be considered an employment-related benefit, which may affect child support calculations. In tax law, per diem payments may be subject to reporting requirements, influencing how individuals report their income. Users can manage related forms and procedures through resources like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: An employee traveling from New York City to Chicago for a business meeting may receive a per diem of $200 per day to cover meals and lodging. If the employee spends $150 on meals and $100 on lodging, they can claim the per diem amount without additional documentation.
Example 2: A military member stationed in Alaska receives a per diem allowance while on temporary duty in Hawaii, reflecting the higher cost of living in that area. (hypothetical example)
| State | Per Diem Rate Variability |
|---|---|
| California | Higher rates for urban areas like San Francisco. |
| Texas | State rates may differ from federal rates, especially in large cities. |
| New York | Specific allowances for different boroughs, with higher rates in Manhattan. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Expense Reimbursement | Payment made to employees for actual expenses incurred, requiring receipts. |
| Travel Allowance | A broader term that may include per diem and other travel-related costs. |
| Allowable Expenses | Specific costs that can be reimbursed or deducted under tax laws. |
If you are an employee or contractor who travels for work, familiarize yourself with your company's per diem policy. Ensure you understand the rates and documentation required for reimbursement. If you need assistance, consider using US Legal Forms' templates for expense reports and travel reimbursements. For complex situations, consulting a legal professional may be beneficial.
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The purpose of a per diem allowance is to provide employees with a set amount of money to cover daily expenses incurred while traveling for work.