When on the road, whether it be for business or pleasure, it’s pretty easy to overspend. But when you’re on the company dime, it’s important to control your budget, based on the standards and regulations set by your company policy. And that is where a per diem comes in handy.
As a daily allowance to cover living expenses when traveling, a per diem helps to keep overspending at bay, and leaves no room for question as to what’s within policy, and what isn’t. By providing a benchmark limit, per diems provide a boundary for business travelers, while giving company accountants and administrators piece of mind that the T&E budget won’t be compromised.
Companies interested in implementing a per diem have one of two options: a customized per diem or following the General Services Administration (GSA) suggestions. The GSA establishes appropriate per diem rates for frequently traveled cities based on both lodging and meals and incidental expenses (M&IE). Lodging covers any overnight stay...