Per Diem Formula:
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Definition: Per diem (Latin for "per day") is a daily allowance for expenses incurred during travel or relocation, particularly for Permanent Change of Station (PCS) moves.
Purpose: It helps military personnel and other travelers cover daily costs like meals and incidental expenses during official travel.
The calculator uses the formula:
Where:
Explanation: The daily rate is multiplied by the number of travel days to calculate the total per diem amount.
Details: Accurate per diem calculations ensure proper reimbursement for travel expenses and help with travel budgeting.
Tips: Enter the daily rate in dollars and the number of travel days. Both values must be > 0.
Q1: Where can I find the official per diem rates?
A: For U.S. military, check the Defense Travel Management Office. For civilians, check the GSA website.
Q2: Are per diem rates the same everywhere?
A: No, rates vary by location and are typically higher in more expensive cities.
Q3: Does per diem cover all travel expenses?
A: It covers meals and incidental expenses. Lodging is usually reimbursed separately.
Q4: What if my travel spans multiple rate areas?
A: Calculate each portion separately using the appropriate rate for each location.
Q5: Is per diem taxable income?
A: For military PCS moves, per diem is generally non-taxable. For business travel, it may be taxable if it exceeds federal rates.