The new per-diem numbers are now out, effective October 1, 2018. These numbers are to be used for per-diem allowances paid to any employee on or after October 1, 2018, for travel away from home on or after that date. The new rates include those for the transportation industry; the rate for the incidental expenses; and the rates and list of high-cost localities for purposes of the high-low substantiation method.
Per diem rates are a fixed amount paid to employees to compensate for lodging, meals, and incidental expenses incurred when traveling on business rather than using actual expenses.
A mileage reimbursement program can be key for many businesses. But, often employees ask, “What expenses does a mileage reimbursement cover?” Let’s go over that, as well as some tips for a great reimbursement program.
What’s Included In The Mileage Reimbursement?
The mileage reimbursement covers the cost of operating a personal vehicle for business reasons. This includes the cost of things like gasoline, oil, maintenance and wear-and-tear.
Your business can decide how to handle other driving-related expenses. This may include the costs of parking and tolls.
Travel to business-related conventions, seminars, or similar meetings can be tax deductible. This can include deductions for your transportation, lodging, and 50% of your meal expenses while on business. Learn about how to do this, as well as some of the IRS restrictions.