Business glossary
Per diem
A daily allowance or rate used for qualifying travel or work expenses.
Example
A business travel policy may allow a stated daily amount for qualifying meals or lodging. Record the traveler, dates, location and business purpose alongside the allowance.
How it differs from related terms
A per diem allowance differs from reimbursing each actual receipt. Eligibility, allowed rates and tax treatment vary by policy and jurisdiction. Use the current responsible authority and employer policy for a real claim.
Frequently asked questions
What is an example of per diem?
A business travel policy may allow a stated daily amount for qualifying meals or lodging. Record the traveler, dates, location and business purpose alongside the allowance.
How should per diem be interpreted?
A per diem allowance differs from reimbursing each actual receipt. Eligibility, allowed rates and tax treatment vary by policy and jurisdiction. Use the current responsible authority and employer policy for a real claim.