Per Diem Payments

AAA

DEFINITION of 'Per Diem Payments'

Generally, a specified amount that employers will pay to employees as reimbursement for various expenses. Per diem payments usually assume a set dollar limit, such as $30 per day for meals or $100 per day for lodging. These payments are usually made for employee travel expenses.

INVESTOPEDIA EXPLAINS 'Per Diem Payments'

Per diem payments are usually counted as nontaxable income to employees, up to a certain amount, and any excess reimbursement is included in box 12 of the W-2 form. The IRS allows a preset amount to be excluded from taxation for each type of per diem expense.

RELATED TERMS
  1. Fixed and Variable Rate Allowance ...

    A way of reimbursing employees who use their own or leased vehicles ...
  2. Day Rate

    The price/cost of a particular service for a day's period. In ...
  3. Out-Of-Pocket Expenses

    An expense incurred and paid for by an individual for personal ...
  4. Travel Expenses

    The costs associated with traveling for the purpose of conducting ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which ...
  6. Business Expenses

    Any expenses incurred in the ordinary course of business. Business ...
Related Articles
  1. Travel Tips For Keeping You And Your ...
    Insurance

    Travel Tips For Keeping You And Your ...

  2. Tax Credit For Plan Expenses Incurred ...
    Entrepreneurship

    Tax Credit For Plan Expenses Incurred ...

  3. 3 Common Tax Questions Answered
    Taxes

    3 Common Tax Questions Answered

  4. Cash Flow On Steroids: Why Companies ...
    Markets

    Cash Flow On Steroids: Why Companies ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center