I just wanted to add to the tax aspect of this topic. The per diem is a nontaxable item if added to the employees paycheck as long as it does not exceed the rates posted for the time period of the trip. The 2019-2020 rate is $60 for meals unless it is a high cost area which is $71 for meals. Any amount paid to them over those amounts would either need to be included as taxable income, or you would need to collect receipts from the employee to make it an accountable reimbursement.
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Dennis J. Shindle, Jr. CPA, CCIFP
Manager
Rotz & Stonesifer, P.C.
Chambersburg PA
(717) 264-5961
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Original Message:
Sent: 11-09-2019 10:09
From: Robert McManus
Subject: Per Diem
We do it through payroll as a tax exempt add. I don't see any problems with that from a tax standpoint as long as you can prove the out of town travel, which is easy with time card history charged to the out of town job, and you don't exceed IRS limits, which are pretty high.
Robert McManus
Chief Financial Officer
Direct: 404.965.9349
Main: 404.361.5154 | Fax: 404.965.9355
PO Box 45717 | Atlanta, GA 30320
www.msrs.com
Original Message------
We have always paid per diem through AP. We are going to start paying through payroll. Is this completely non-taxable to the employee? Do you post pay or pre pay (before or after they are out of town)? Any insight to your process would be helpful. Thank you!
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Stacy Webre
Vice President of Accounting
Lochridge-Priest, Inc.
Waco TX
(254) 772-0670
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