1. What is Per Diem?

Per Diem refers to a daily allowance provided for expenses incurred during travel or work away from home. It typically covers meals, lodging, and incidental expenses.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Daily Rate — The allowance amount per day (in dollars)
• Days — The number of days the allowance covers

3. Importance of Per Diem Calculation

Details: Accurate per diem calculation ensures proper reimbursement for travel expenses and helps organizations budget for employee travel costs.

4. Using the Calculator

Tips: Enter the daily rate in dollars and the number of days. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does per diem typically cover?
A: Per diem usually covers meals, lodging, and incidental expenses during business travel or work assignments.

Q2: Are per diem rates standardized?
A: Many organizations follow GSA (General Services Administration) per diem rates, but companies may set their own rates.

Q3: Is per diem taxable income?
A: If the payment doesn't exceed federal per diem rates and proper documentation is provided, it's generally not taxable.

Q4: Can per diem vary by location?
A: Yes, per diem rates often vary based on the cost of living in different locations.

Q5: What if expenses exceed per diem?
A: Typically, employees are responsible for any expenses that exceed the per diem allowance.