Per diem reimbursement method becomes mandatory for all employees June 1

March 09, 2012

Per Diem method for reimbursement of meal expenses for travel within the United States:

Reimbursement of meal expenses is based on a daily allowance rather than the actual cost of the meals. The per diem rate is broken down into separate amounts for breakfast, lunch, and dinner.  If a third party, for example meals included as part of a conference, is providing any of your meals, the rate claimed must be reduced by the portion represented by the meal provided. Meals which could reasonably be eaten at home on the dates of departure or return should also be deducted from the daily rate.

The rates below represent the maximums that will be reimbursed.

The current rate, in effect until December 31, 2012, is $50.00 which is broken down into individual meals is as follows:

The following areas are considered high cost for travel: the states of Alaska and Hawaii, and the metropolitan areas of Baltimore, Boston, Chicago, New York, Philadelphia, San Francisco, Seattle, and Washington DC. The per diem rate for these high-cost areas is $60.00 per day. You may use this higher cost rate for days when you will be staying in one of the listed areas at the end of the day. The breakdown of the higher cost daily rate into individual meals is as follows:

It will not be necessary to submit receipts for meals under the per diem plan.

Please remember, however, the IRS does not allow the use of per diems for travel outside the United States.  Therefore when travelling outside of the country, it will still be necessary to submit original receipts in order to be reimbursed.

In some rare circumstances, entertaining a donor for example, it may still be appropriate to seek reimbursement for the full cost of the meal. In that instance, it will be necessary to submit an original receipt and deduct the per diem value of that meal from your per diem request. The Business Office may also request that a Vice President or Dean also approve the exception.

The use of per diems for meals becomes mandatory for all employees on June 1, 2012. Some departments have voluntarily been using per diems for several months. If additional departments are interested in using per diems before June 1, Accounts Payable needs an email or memo from the department head indicating their interest in participating early. All employees of a department must be covered by the voluntary change to per diem request. The per diem rates in effect until June 1, 2012 are $40 for most locations and $50 for high cost areas.