Can an employer write off per diem?
Sarah Duran
Published Feb 27, 2026
Employees. Per diem rates can be used to reimburse employees for travel expenses. This means only businesses and the self-employed can now deduct those expenses. An employer can use a per diem rate to reimburse employees for combined lodging and meal costs, or for meal costs alone.
What is a per diem adjustment?
Per diem is an allowance paid to your employees for lodging, meals, and incidental expenses incurred when travelling. This allowance is in lieu of paying their actual travel expenses.
How long can an employee receive per diem?
How long does per diem last? Contractor per diem cannot be given for more than 12 continuous months on the same contract assignment. If the contractor is still on the same contract assignment after 12 months, the per diem rate should be discontinued.
How does per diem employment work?
Per diem employees work on an as-needed basis. While per diem means “for each day” and not “as-needed,” a per diem position applies to someone who may be needed one day but not the next. They’re paid per diem rates for the days they work, rather than hourly wages or salaries.
Can a company change the per diem policy?
The company has a right to change the rules at any given time with notification. Some employers also refrain from paying per diem to their employees as a company policy. In your situation it appears the rules are discriminatory in nature towards married couples.
Is there a per diem rule for married employees?
When other employees share accommodation they are paid the regular per diem, the rule applies to married people only, is this considered discrimination? Per diem rules are created and controlled by the company and are governed by the company policies. The company has a right to change the rules at any given time with notification.
What do you need to know about per diem?
Per diem is a specific or fixed amount of money which a company provides to an employee to reimburse stay and travel expenses incurred while travelling or working away from the place of employment. Employers usually pay a standard daily rate irrespective of the actual amount spent by the employee.
Do you have to return unused per diem money?
Employers usually pay a standard daily rate irrespective of the actual amount spent by the employee. This eliminates the need to create expense reports by employees for reimbursement. Employees need not return any unused or unspent per diem money.