Originally Posted by
erik123
I worked for a place that had a set rate for accomodation and a flat rate per diem based on location. E.g. if the rate was set at $200 for accomodation, you could stay at a holiday inn for $100 and pocket the difference or the Four Seasons for the full $200 (FYI - I stayed at several at an even lower corporate rate). Same for per diem - flat rate and do as you wish and pocket the difference, if any. If accomodation and/or (some) meals where provided that component would be deducted. Very simple, cheap to administer, and based on research cost neutral to the bottom line.
Hopefully not in the recent past.
At least in the US/
IRS rules permit employers to establish reasonable flat rate per diems for food and other related expenses, but not so for hotels (or more precisely, overnight accommodations). If you are allowed $90 for meals and spend $10, you may pocket the $80 without tax consequences. However, if you are allowed $200 per night for a hotel and spend $100 and pocket the $100, that extra $100 is income to you.