Per Diem Definition

Per diem refers to the daily stipend an employee receives to cover travel expenses in addition to salary and wages.

Per Diem Extended Definition
An employee’s per diem pay typically covers lodging and meal expenses. Per diem may also include additional money to cover other incidental expenses, such as laundry or tips for service workers.

As long as the per diem rate does not exceed the standard rate set by the government, the employee does not have to pay taxes on this type of compensation.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023