1. What is Per Diem?

Per diem (Latin for "per day") is a daily allowance provided to employees to cover expenses incurred while traveling for business. It typically covers meals, accommodation, and incidental expenses without requiring detailed expense reports.

2. How Does the Calculator Work?

The calculator uses the simple per diem formula:

Where:

• \( Daily Rate \) — The fixed daily allowance amount
• \( Days \) — Number of travel days

Explanation: This straightforward calculation multiplies the daily rate by the number of days to determine the total per diem allowance.

3. Importance of Per Diem Calculation

Details: Accurate per diem calculation ensures proper reimbursement for business travel expenses, simplifies accounting processes, and helps employees budget for their travel needs.

4. Using the Calculator

Tips: Enter the daily rate in dollars and the number of travel days. Both values must be positive numbers (daily rate > 0, days ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: Are per diem rates standardized?
A: Many organizations use standardized rates set by government agencies (like GSA in the US), but companies may set their own rates.

Q2: Is per diem taxable income?
A: Generally, per diem payments within federal guidelines are not taxable. Amounts exceeding government rates may be subject to taxation.

Q3: What expenses does per diem typically cover?
A: Per diem usually covers meals, lodging, and incidental expenses like tips and transportation between lodging and business locations.

Q4: Do I need receipts with per diem?
A: Typically no, as per diem is a fixed allowance. However, you may need to provide documentation of travel dates and locations.

Q5: Can per diem rates vary by location?
A: Yes, many organizations use location-specific rates that account for higher costs in certain cities or regions.