IRS Raises Travel Per Diem Rates

IRS Raises Travel Per Diem Rates Effective October 1, 2008
The IRS has increased the standard rates for business travel and also added certain cities to the list of high-cost localities. Instead of requiring receipts for actual lodging, meals and incidental travel expenses, employers can simply reimburse travel at standard per diem rates. The new rate for high-cost areas is $256 ($198 for lodging and $58 for meals & incidentals). The new rate for all other localities is $158 ($113 for lodging and $45 for meals & incidentals). For a list of localities that qualify as high-cost, see text of Rev. Proc. 2008-59 at http://benefitslink.com/links/20081001-065609.html.

Note: alternatively, employers can use the city-specific per diem rates (which are often lower than the high-cost/low-cost rates). These can be seen at www.gsa.gov/perdiem.