Are Per Diem Payments Required After a Year By Law?
Full Question:
Answer:
The answer will depend on whether you work for a government employer. Per diem payments by private employers are a matter of company policy. Typically the human resources department of an organization will establish per diem rates for employee travel expense reimbursement as well as policies for submitting travel expense forms and for documenting all approved expenses. Per diem amounts are normally set in advance. Employees typically may either claim actual expenses incurred or use established per diem rates or combine these methods. For example, the employee may claim a per diem amount for meals and claim actual costs for lodging, as long as lodging expenses do not exceed the per diem allowance for lodging.
It is important for a company to establish clear per diem amounts and travel policies before employees are hired and begin to travel for the company. For example, a company must decide whether it will reimburse employees' personal phone calls while traveling, if it will reimburse employees for rental lodging, etc. As a perk for employees, some firms consider paying for extra services to either reward, motivate, or retain employees in tight labor markets, such as extra allowances for housing. Government employers have applicable per diem rates established by federal law.