For those frequently on the move for business, there is significant news from the realm of accounting and taxes. The IRS has made an upward adjustment in the special per diem rates for business travel, primarily due to inflationary pressures.
The revised rates are promising for businesses and their employees. These per diem rates are essentially daily allowances provided to employees to cover expenses such as meals and lodging while traveling for work. An increase in these rates means potentially higher tax-free reimbursements for business travel expenses. The changes in rates vary, but notably, the highest rate for any high-cost locality within the continental U.S. has seen a significant jump.
It is essential for businesses to stay updated about these adjustments. They impact budgeting for corporate travel and also have implications for reporting and compliance. By staying informed, businesses can ensure they take advantage of potential benefits and avoid any pitfalls.
Sources: Journal of Accountancy and Accounting Today