FlyerTalk Forums - View Single Post - Travel Expenses: Dumb Things your Company has Done
Old Jan 23, 2019, 12:54 pm
  #443  
MissJ
 
Join Date: Nov 2008
Location: It's hot here
Posts: 4,286
Originally Posted by Often1
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.
I was about to say something similar.

I always told our project managers that if the client would go for per diem, do it. It's so much easier. Far fewer receipts, no checking line items, just pay and be done with it. I would setup the rates in our expense system and they could choose partial days on the days they travel and everything was fine. Loved it. I knew some of them would go buy a week of groceries while others ate out for every meal and I didn't care.
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