Per Diem — Payroll Definition

What is Per Diem?

Per diem is a method of reimbursing business-travel lodging, meal, and incidental expenses. Being at or below a federal rate does not by itself settle tax treatment: the arrangement must meet the applicable accountable-plan, business-purpose, timing, and substantiation rules. For federal travel in the continental United States, the FY 2026 standard meals-and-incidental-expenses rate is $68, with higher location-specific tiers. Private employers should use the current IRS and GSA rules that apply to the trip.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

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