Per Diem Help

dgoodhall

I am foggy on if we have to pay for our traveling employees meals? We are in California and we currently cover travel time, all lodging expenses provide company vehicle and pay a meal per diem, my question is are we required by law to pay for the meals? If so how much? I know that there are IRS maximum amounts but until I found this snipit of article I had to idea it was required to pay one or the other:

" Employers must reimburse each employee for the purchase of
meals, lodging, and other incidental expenses when the employer requires the
employee to travel away from home on business. For meals and lodging, the
employer has the option of reimbursing the actual costs or providing the
employee with a Per Diem rate equivalent to the standard IRS per diem rate for
the location of travel. If the employer elects to provide the IRS per diem
rate, it must make the employee aware of this policy before the business
travel. Failure to do so will result in the employer being required to
reimburse the employee for the actual costs, even if greater than the IRS Per Diem rate. Employers must also reimburse employees for the actual costs of all
incidental travel expenses, such as tips."

LauLan

Well, unless your pockets are bottomless, you'll want to set a fair amount that you are willing to reimburse for meals.  Otherwise, your employees will be eating at Taylor's Steakhouse for lunch everyday.

6475429

I used this website recently and found it helpful.

http://www.gsa.gov/portal/category/100120

JackNatrav

This one is pretty good too, it has US and worldwide rates:

http://www.per-diem-rates.com

suzied

Hi, I'm new here but yes, unless the guidelines are set clearly, employees can and will abuse the system. In a former company, an employee went to Ruth Chris taking 3 others and attempted to expense a $400 dinner. I've also seen tips get inflated, too - in terms of employees claiming they paid out $50+ in tips for a 3 night trip for housekeeping & bellmen. Seems excessive.