per trip meaning

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer

CPG Data Tip Sheet

Transforming your syndicated data into business insight

Data Dictionary: 4 Key Household Panel Measures

April 8, 2013 By Sally Martin 6 Comments

Need to get up to speed on household panel data? Wondering where to start?  If you’re not sure where Nielsen and IRI panel data comes from, start with our panel overview post.   If you’re ready to dig into the data, read on.   Here’s what you’ll learn in this post:

• Definitions for four key panel data facts: Penetration, Buying Rate, Purchase Frequency and Purchase Size
• How they relate to each other and to your products’ sales
• How they are calculated

Penetration is the % of households that have purchased a product, or shopped in a certain channel or retailer.   Higher is better and 100% penetration is as good as it gets.   If annual penetration of Brand X in the New York market is 56%, it means that 56% of all households in the New York market purchased Brand X at least once during the year.

Buying Rate is the total amount of product purchased by the average buying household over an entire analysis period.  It can be expressed in dollars, units or EQ volume.   This fact is also known as Sales per Buyer.  If annual buying rate for Brand X is $15.53, it means that each household who bought Brand X spent, on average, a total of $15.53 on it over the course of the year.

Purchase Frequency is the number of times your average buying household purchases your product over a whole time period (usually a year).  Purchase Frequency remains the same regardless of which sales measure is used (dollars, units or EQ volume).   Purchase Frequency can also be called Trips per Buyer.   If annual purchase frequency for Brand X is 4.2, it means that each household who bought Brand X, on average, bought it 4.2 times over the course of the year.

Purchase Size is the average amount of product purchased on a single shopping trip by your average buyer.  Like Buying Rate, Purchase Size can be calculated in terms of dollars, units or EQ volume.   This fact is sometimes referred to as Sales per Trip.  If annual purchase size for Brand X is 1.1 units, it means that Brand X buyers purchased an average of 1.1 units each time they bought Brand X during that year.

How do these four measures work together to influence sales?

Sales = (Total Number of Households Out There x  Penetration) x  Buying Rate

Buying Rate = Purchase Frequency x Purchase Size

Here’s a simple example of how these facts are calculated.  You will probably never need to do these calculations – you’ll get a nice report that does that for you.   But I think knowing how something is calculated helps you understand (and troubleshoot) your data.

In the last 52 weeks, a store had 100,000 shoppers.

10,000 of them bought your product.

Each of your 10,000 buyers purchased your product five times over the course of the year.

At each of those five purchase occasions, they bought two 8-oz units at a price of $3.00 per unit.

Penetration = 10,000 / 100,000 = 10%

Purchase Frequency = 5

Purchase Size (Dollars) = 2 * $3 = $6

Purchase Size (Units) = 2

Purchase Size (Oz)  = 2 * 8 = 16 oz

Buying Rate (Dollars) = 5 * $6 = $30

Total Sales (Dollars) = 10,000 * $30 = $300,000

Want to see these four measures in action?  Read about the Sales Driver Analysis , an approach that can not only be be applied to the Nielsen/IRI household panel but is also common among retailers when analyzing loyalty card data.

Reader Interactions

December 9, 2013 at 2:35 pm

Can you help me understand Trip Conversion and Share of Trips? Are they the same thing?

December 12, 2013 at 2:14 pm

Conversion measures (buyer conversion, trip conversion) look at the retailer relative to the market. So Trip Conversion would be: RetailerX Trips Including ProductX / All Trips Including ProductX.

Share of Trips could be the same measure. Trip Conversion is a share measure. Share of Trips could also be calculated from the *product* perspective: Trips Including ProductX / All Trips.

If you aren’t sure how Share of Trips is calculated, I recommend looking at the component numbers for one data point and calculating the ratio manually. Then you can see whether the numbers line up.

June 17, 2015 at 3:31 pm

Trying to understand the Nielsen’s HH Panel definition of “Dollar Loyalty”. I google the term and your site comes up, but I can’t find the discussion your site. Feels like a proxy for Share of Wallet, but not sure. Any help would be appreciated.

Great site.

June 21, 2015 at 8:11 pm

In Nielsen and IRI panel data, Loyalty is another name for Share of Requirements. It’s the share of a panelists’ category dollars going to a particular brand. When this measure is calculated, panelists who only purchased the category one time are removed (since how could their “brand loyalty” be estimated if they only purchased the category once). So it’s a similar idea to Share of Wallet but, in panel data, the Share of Wallet typically refers to loyalty to a retailer rather than a brand.

August 26, 2019 at 2:50 pm

what does Avg NOB, Avg NOP, Avg POC mean in Nielsen report?

August 29, 2019 at 3:58 pm

Sorry, I’m not familiar with those abbreviations.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Notify me of follow-up comments by email.

Notify me of new posts by email.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

• Glossary (79)
• How To Answer Business Questions (41)
• How To Communicate Insights (17)
• How To Get Started with Nielsen/IRI (22)
• How To Understand Your Database (12)
• Know Your Measures: Distribution (24)
• Know Your Measures: Pricing and Promotion (45)
• Know Your Measures: Sales (21)
• Miscellaneous (6)

Search CPG Data Tip Sheet

June 1, 2020

Due to travel restrictions, plans are only available with travel dates on or after

Due to travel restrictions, plans are only available with effective start dates on or after

Ukraine; Belarus; Moldova, Republic of; North Korea, Democratic People's Rep; Russia; Israel

This is a test environment. Please proceed to AllianzTravelInsurance.com and remove all bookmarks or references to this site.

Use this tool to calculate all purchases like ski-lift passes, show tickets, or even rental equipment.

Who’s Covered By My Travel Insurance Benefits?

Get a Quote

{{travelBanText}} {{travelBanDateFormatted}}.

{{annualTravelBanText}} {{travelBanDateFormatted}}.

If your trip involves multiple destinations, please enter the destination where you’ll be spending the most time. It is not required to list all destinations on your policy.

Age of Traveler

Ages: {{quote.travelers_ages}}

If you were referred by a travel agent, enter the ACCAM number provided by your agent.

Travel Dates

{{quote.travel_dates ? quote.travel_dates : "Departure - Return" | formatDates}}

Plan Start Date

{{quote.start_date ? quote.start_date : "Date"}}

Share this Page

• {{errorMsgSendSocialEmail}}

Your browser does not support iframes.

Popular Travel Insurance Plans

• Annual Travel Insurance
• Cruise Insurance
• Domestic Travel Insurance
• International Travel Insurance
• Rental Car Insurance

View all of our travel insurance products

Terms, conditions, and exclusions apply. Please see your plan for full details. Benefits/Coverage may vary by state, and sublimits may apply.

Insurance benefits underwritten by BCS Insurance Company (OH, Administrative Office: 2 Mid America Plaza, Suite 200, Oakbrook Terrace, IL 60181), rated “A” (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: 9950 Mayland Drive, Richmond, VA 23233), rated “A+” (Superior) by A.M. Best Co., under Jefferson Form No. 101-C series or 101-P series, depending on your state of residence and plan chosen. A+ (Superior) and A (Excellent) are the 2nd and 3rd highest, respectively, of A.M. Best's 13 Financial Strength Ratings. Plans only available to U.S. residents and may not be available in all jurisdictions. Allianz Global Assistance and Allianz Travel Insurance are marks of AGA Service Company dba Allianz Global Assistance or its affiliates. Allianz Travel Insurance products are distributed by Allianz Global Assistance, the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage due to the affiliation between AGA Service Company and Jefferson Insurance Company. Plans include insurance benefits and assistance services. Any Non-Insurance Assistance services purchased are provided through AGA Service Company. Except as expressly provided under your plan, you are responsible for charges you incur from third parties. Contact AGA Service Company at  800-284-8300 or 9950 Mayland Drive, Richmond, VA 23233 or [email protected] .

Return To Log In

Your session has expired. We are redirecting you to our sign-in page.

• More from M-W
• To save this word, you'll need to log in. Log In

Definition of trip

 (Entry 1 of 2)

intransitive verb

transitive verb

Definition of trip  (Entry 2 of 2)

• peregrination

Examples of trip in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'trip.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

Middle English trippen , from Anglo-French treper, triper , of Germanic origin; akin to Old English treppan to tread — more at trap

14th century, in the meaning defined at intransitive sense 3a

14th century, in the meaning defined at sense 5

Phrases Containing trip

• business trip
• lay / put a guilt trip on
• on a power trip
• roll / trip off the tongue
• round - trip ticket
• trip - hammer
• trip the light fantastic

Dictionary Entries Near trip

trioxymethylene

Cite this Entry

“Trip.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/trip. Accessed 27 Apr. 2024.

Kids Definition

Kids definition of trip.

Kids Definition of trip  (Entry 2 of 2)

More from Merriam-Webster on trip

Nglish: Translation of trip for Spanish Speakers

Britannica English: Translation of trip for Arabic Speakers

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

Can you solve 4 words at once?

Word of the day.

See Definitions and Examples »

Get Word of the Day daily email!

Popular in Grammar & Usage

More commonly misspelled words, commonly misspelled words, how to use em dashes (—), en dashes (–) , and hyphens (-), absent letters that are heard anyway, how to use accents and diacritical marks, popular in wordplay, the words of the week - apr. 26, 9 superb owl words, 'gaslighting,' 'woke,' 'democracy,' and other top lookups, 10 words for lesser-known games and sports, your favorite band is in the dictionary, games & quizzes.

• Search Search Please fill out this field.

What Does Per Diem Mean?

Understanding per diems.

• For Government Employees
• For the Self-Employed
• Rates for 2023

The Bottom Line

• Salaries & Compensation

What Does Per Diem Mean, and What Are Per Diem Rates?

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

Investopedia / Michela Buttignol

A per diem, from the Latin for “by the day,” is a daily allowance paid to an employee to cover costs incurred while on a business trip. Covered business expenses typically include accommodation, food, and incidental expenses such as fees and tips for services.

The term per diem can also refer to a compensation system in which an employee is paid per day worked as opposed to receiving a weekly salary.

Many companies and their employees prefer a flat per diem to the more burdensome requirement for submitting itemized expense accounts.

Key Takeaways

• Per diems are daily allowances for the costs of business travel.
• Per diems cover business expenses for accommodations, meals, and incidentals.
• Companies may provide a company credit card, full or partial expense coverage, or fixed daily rates.
• Most firms use the standard rates set by the federal government as a guideline for their per diems.
• Per diem payment also refers to compensation received by workers who are paid for days worked.

Each company sets its own rates for per diem payments, which reimburse employees whose jobs require traveling.

• Company credit cards : Some companies issue business credit cards to their employees. They use the cards to pay business expenses directly while on the job and without having to pay any expenses out of pocket.
• Full or partial expense coverage : Some companies cover employee expenses in full, while others set limits for certain expenses, such as lodging, food, and incidentals.
• Fixed amounts : Many corporations provide their employees with a specific fixed daily rate. Employees are expected to cover all or part of their costs with this per diem.

Per diem also refers to a per-day compensation received by some workers. They get their wages by the day or the quantity of work done, rather than being paid a regular salary for a full-time job. These types of workers are usually on temporary or short-term contracts. For example, travel nurses and substitute teachers are paid per diem.

Per Diems for Government Employees

Per diems for federal government employees who travel for work are set by the U.S. General Services Administration (GSA). Companies use this federal per diem rate as a guideline for their own per diem policies.

Standard rates for both domestic and international travel go into effect on October 1st of each year. The standard rate applies to approximately 2,600 U.S. counties. Nonstandard, location-specific rates apply to 302 high-cost areas.

Rates set by the government are based on the cost of living in a company’s city. That’s why it sets rates for certain locations higher or lower than the standard rate.

Per Diems Greater Than the Federal Rate

Per diem payments that are above the standard government rates require the employee to pay tax on the excess amount. They may opt to return any excess amount above the government rate to the company.

The excess payout is included in Box 12 of Form W-2 . Failure to file a business expense report with the employer within 60 days generally results in a tax on the full per diem disbursement .

Per Diems Equal to the Federal Rate

If the per diem is equal to or less than the federal per diem rate, it isn't considered part of an employee’s wages and isn’t taxable. However, employees must submit a business expense report to their employer to substantiate their expenses.

The required report must be submitted to the employer within 60 days of the conclusion of the trip and include the following information:

• Business purpose of the expense
• Date, time, place, and amount of the expense
• Receipts for lodging

The report should also be accompanied by receipts for out-of-pocket expenses. It’s not necessary for employees to submit meal and incidental receipts if they receive a per diem, though the Internal Revenue Service (IRS) requires lodging receipts.

Nontaxable payments appear separately from taxable income on Form W-2.

Employees are required to pay taxes on any amount over the federal government’s standard per diem rate that they don’t return.

Per Diems for the Self-Employed

Self-employed individuals can only use a per diem for the cost of meals. Like other employees, self-employed persons must keep a record of expense reports that substantiate the date, location, and purpose of the business trip. Receipts may also be required in some cases. It’s still a good idea to keep them in case.

Per Diem Rates for 2024

As mentioned previously, new per diem rates are set by the GSA every year and are released on October 1st.

For 2024 the standard lodging rate increased from 2023’s $98 to $107. Current nonstandard areas' per diem rates, which apply to 302 areas and are typically higher than the standard rate, are at or above 2023 rates for lodging.

Rates for the meals and incidental expenses (M&IE) per diem tiers remain unchanged from 2023’s $59 to $79. The standard M&IE rate also remains unchanged at $59.

To calculate your per diem based on government rates, visit the GSA’s Travel Resources Per Diem Look-Up page. Enter your travel destination, dates, and year, then click “Search” for the results.

Types of Per Diem Payments

Every company handles per diem payments differently. They may issue credit cards, cover full or partial expenses, or offer fixed daily rates. They may require employees to cover expenses out of pocket and then request reimbursement . Some companies pay the per diem by check as an indication that it is separate from the employee’s income.

Per diem payments may cover business expenses fully or partially. Companies may use a per diem rate for lodging and meals or a per diem rate to cover meals only. A partial per diem, for example, may provide $100 to cover meals only, while lodging expenses and incidentals are to be paid out of pocket.

Fixed Rates

A business that implements a fixed per diem method usually pays the employee a fixed amount per day. For example, a per diem payment for an information technology (IT) consultant working for the week in another city could be $200 per day: $100 for accommodations, $50 for food, and $50 for incidental costs.

Incidental expenses are costs that are not specifically identified but are at the discretion of employees. They may include the costs of laundry service, internet use, room service, tips, and more.

If an employee uses a personal car on a business trip, they will be reimbursed according to the IRS mileage reimbursement rate. This is an optional rate used to calculate the deductible costs of operating a vehicle for business purposes. For 2024, the rate is 67 cents per mile, up 1.5 cents from 2023.

Out-of-Pocket Expenses

When employees are required to pay for their expenses themselves, companies usually require them to submit claims. If claims are approved for such out-of-pocket expenses, firms then reimburse their employees.

This method is more time-consuming than a per diem, as it requires staff to review claims and receipts, approve or decline reimbursement requests, and issue payments to employees.

Benefits of Per Diem Payments

Companies and employees can benefit from per diem allowances.

• Per diems can help companies budget future expenses more accurately.
• Per diems reduce or eliminate the need for reviewing and managing receipts.
• Per diems reduce paperwork to a minimum for both companies and employees.
• They streamline the tax-deduction process for businesses when used for travel.
• They ensure that employees don’t get taxed on allowances that serve as reimbursements.
• Employees can keep excess amounts of per diems that they don’t spend (although they will owe tax on that excess.)

What Qualifies for Per Diem Payment?

Per diems cover expenses related to business travel , including lodging, meals, and incidentals such as service-related fees and tips.

Why Do Companies Pay Per Diem?

Paying a per diem rate is an easier and more cost-efficient way to reimburse employees for travel costs. Both the employer and the employee are spared the chores of accounting for every penny spent.

Many companies prefer to pay certain workers, such as travel nurses and substitute teachers, a per diem rate because it is less burdensome than adding them to the regular payroll system

What Are the Benefits of Per Diems?

Per diem payments cover certain travel expenses for employees that must be reimbursed in some way. They can simplify and even eliminate expense paperwork for both employees and companies. They are tax deductible for a business and are not considered income for an employee.

A per diem is a daily allowance given to employees by a company to pay for certain expenses while traveling for business. These expenses include lodging, meals, and incidentals. Companies will sometimes issue a credit card to employees to pay their per diem expenses.

A company’s per diem rate is often the same as that set by the GSA. This is because a higher company per diem rate would require the employee to pay tax on the amount that exceeds the government rate (unless they return it to the company). Per diems can be an efficient and effective way for both companies and employees to manage travel expenses.

U.S. General Services Administration. " FY 2024 Per Diem Highlights ."

U.S. General Services Administration. " Per Diem Rates ."

Internal Revenue Service. " Form W-2 ."

Internal Revenue Service. " Per Diem Payments ."

U.S. General Services Administration. " Travel Resources ."

Internal Revenue Service. " IRS Issues Standard Mileage Rates for 2024; Mileage Rate Increases to 67 Cents a Mile, up 1.5 Cents From 2023 ."

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• Cambridge Dictionary +Plus

Meaning of trip in English

Your browser doesn't support HTML5 audio

trip noun ( JOURNEY )

• You should always check your oil , water and tyres before taking your car on a long trip.
• How about a trip to the zoo this afternoon ?
• She's going on a trip to New York, all expenses paid .
• The travel company has written giving information about the trip.
• He's always going off around the world on business trips, leaving his wife to cope with the babies by herself.
• break-journey
• circumnavigation

trip noun ( FALL )

• collapse under someone's/something's weight
• collapse/fall in a heap idiom
• drop like flies idiom
• knock someone over
• let go idiom
• overbalance
• parachutist
• trip (someone) up

trip noun ( EXPERIENCE )

• abstinence-only
• non-intoxicant
• non-intoxicating
• pill-popping
• solvent abuse
• substance abuse

trip verb ( LOSE BALANCE )

• fall She slipped and fell.
• drop Several apples dropped from the tree.
• collapse Several buildings collapsed in the earthquake.
• crumple He fainted and crumpled into a heap on the floor.
• tumble A huge rock tumbled down the mountain.
• plunge Four of the mountaineers plunged to their deaths when their ropes broke.
• The bowler tripped as he was delivering the ball .
• She tripped and fell over.
• I tripped as I got off the bus .
• She tripped over the rug .
• I tripped on a piece of wire that someone had stretched across the path .

trip verb ( MOVE )

• bowl down/along something
• make good time idiom
• make haste idiom

trip verb ( SWITCH )

• anti-static
• capacitance
• electricity
• high-voltage
• non-electric
• non-electrical
• non-electronic
• solid-state
• transistorized

trip verb ( EXPERIENCE )

Phrasal verb, trip | american dictionary, trip noun [c] ( travel ), trip noun [c] ( experience ), trip verb [i/t] ( lose balance ), trip | business english, examples of trip, collocations with trip.

These are words often used in combination with trip .

Click on a collocation to see more examples of it.

Translations of trip

Get a quick, free translation!

Word of the Day

veterinary surgeon

formal for vet

Dead ringers and peas in pods (Talking about similarities, Part 2)

Learn more with +Plus

• Recent and Recommended {{#preferredDictionaries}} {{name}} {{/preferredDictionaries}}
• Definitions Clear explanations of natural written and spoken English English Learner’s Dictionary Essential British English Essential American English
• Grammar and thesaurus Usage explanations of natural written and spoken English Grammar Thesaurus
• Pronunciation British and American pronunciations with audio English Pronunciation
• English–Chinese (Simplified) Chinese (Simplified)–English
• English–Chinese (Traditional) Chinese (Traditional)–English
• English–Dutch Dutch–English
• English–French French–English
• English–German German–English
• English–Indonesian Indonesian–English
• English–Italian Italian–English
• English–Japanese Japanese–English
• English–Norwegian Norwegian–English
• English–Polish Polish–English
• English–Portuguese Portuguese–English
• English–Spanish Spanish–English
• English–Swedish Swedish–English
• Dictionary +Plus Word Lists
• trip (JOURNEY)
• trip (FALL)
• trip (EXPERIENCE)
• guilt/power/ego trip
• trip (LOSE BALANCE)
• trip (MOVE)
• trip (SWITCH)
• trip (TRAVEL)
• Business    Noun
• Collocations
• Translations
• All translations

Add trip to one of your lists below, or create a new one.

{{message}}

Something went wrong.

There was a problem sending your report.

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

• Explore sell to government
• Ways you can sell to government
• How to access contract opportunities
• Conduct market research
• Register your business
• Certify as a small business
• Become a schedule holder
• Market your business
• Research active solicitations
• Respond to a solicitation
• What to expect during the award process
• Comply with contractual requirements
• Handle contract modifications
• Monitor past performance evaluations
• Explore real estate
• 3D-4D building information modeling
• Art in architecture | Fine arts
• Computer-aided design standards
• Commissioning
• Design excellence
• Engineering
• Project management information system
• Spatial data management
• Facilities operations
• Smart buildings
• Tenant services
• Utility services
• Water quality management
• Explore historic buildings
• Heritage tourism
• Historic preservation policy, tools and resources
• Historic building stewardship
• Videos, pictures, posters and more
• NEPA implementation
• Courthouse program
• Land ports of entry
• Prospectus library
• Regional buildings
• Renting property
• Visiting public buildings
• Real property disposal
• Reimbursable services (RWA)
• Rental policy and procedures
• Site selection and relocation
• For businesses seeking opportunities
• For federal customers
• For workers in federal buildings
• Explore policy and regulations
• Acquisition management policy
• Aviation management policy
• Information technology policy
• Real property management policy
• Relocation management policy
• Travel management policy
• Vehicle management policy
• Federal acquisition regulations
• Federal management regulations
• Federal travel regulations
• GSA acquisition manual
• Managing the federal rulemaking process
• Explore small business
• Explore business models
• Research the federal market
• Forecast of contracting opportunities
• Events and contacts
• Explore travel
• Per diem rates
• Transportation (airfare rates, POV rates, etc.)
• State tax exemption
• Travel charge card
• Conferences and meetings
• E-gov travel service (ETS)
• Travel category schedule
• Federal travel regulation
• Travel policy
• Explore technology
• Cloud computing services
• Cybersecurity products and services
• Data center services
• Hardware products and services
• Professional IT services
• Software products and services
• Telecommunications and network services
• Work with small businesses
• Governmentwide acquisition contracts
• MAS information technology
• Software purchase agreements
• Cybersecurity
• Digital strategy
• Emerging citizen technology
• Federal identity, credentials, and access management
• Mobile government
• Technology modernization fund
• Explore about us
• Annual reports
• Mission and strategic goals
• Role in presidential transitions
• Get an internship
• Launch your career
• Elevate your professional career
• Discover special hiring paths
• Events and training
• Agency blog
• Congressional testimony
• GSA does that podcast
• News releases
• Leadership directory
• Staff directory
• Office of the administrator
• Federal Acquisition Service
• Public Buildings Service
• Staff offices
• Board of Contract Appeals
• Office of Inspector General
• Region 1 | New England
• Region 2 | Northeast and Caribbean
• Region 3 | Mid-Atlantic
• Region 4 | Southeast Sunbelt
• Region 5 | Great Lakes
• Region 6 | Heartland
• Region 7 | Greater Southwest
• Region 8 | Rocky Mountain
• Region 9 | Pacific Rim
• Region 10 | Northwest/Arctic
• Region 11 | National Capital Region
• Per Diem Lookup

Frequently asked questions, per diem

What is per diem?

How do I find the per diem rate for (city/county, state)?

What is the difference between non-standard areas (NSA) and standard CONUS locations?

How are the CONUS per diem rates set for NSAs?

How does GSA set boundary lines for where per diem rates apply?

How can a CONUS non-standard area (NSA) receive a special review?

How can I request the establishment of a new NSA?

What if a city is not listed on the CONUS Per Diem website?

Can hotels refuse to honor the per diem rate to federal government employees and federal government contractors?

Is the hotel’s GOV rate the same as the federal per diem rate?

Are lodging taxes included in the CONUS per diem rate?

Are taxes and gratuity (tips) included in the Meals and Incidental (M&IE) expense rate?

What is considered an incidental expense?

How often is a study conducted on the M&IE expense rates?

What is the M&IE reimbursement rate during the first and last travel day?

Can I combine the lodging and M&IE per diem rates ("mix and match") in order to get a nicer hotel room or spend more on meals?

Do I need to provide receipts?

What do I do if there are no hotels available at per diem?

Do I receive a meal reimbursement for day travel away from my regular duty station?

How much per diem can I pay a contractor?

How much can a trucker deduct for meals per day?

Per diem is an allowance for lodging, meals, and incidental expenses. The U.S. General Services Administration (GSA) establishes the per diem reimbursement rates that federal agencies use to reimburse their employees for subsistence expenses incurred while on official travel within the continental U.S. (CONUS), which includes the 48 contiguous states and the District of Columbia. The U.S. Department of Defense (DOD) establishes rates for travel in non-foreign areas outside of CONUS, which includes Alaska, Hawaii, and U.S. territories and possessions. The U.S. Department of State establishes rates for travel in foreign areas. For more information on rates established by DOD and the State Department visit travel.dod.mil and aoprals.state.gov .

Please visit www.gsa.gov/perdiem  to find the rates. Click on a state on the map to view that state's rates or enter the location in the search box. Even though some cities are listed for your lookup convenience, not all cities can or will be listed. To look up the county a destination is located in, visit the Census Geocoder . If neither the city nor county you are looking for is listed on the GSA per diem rate page, then the standard CONUS rate applies.

Non-standard areas (NSAs) are frequently traveled by the federal community and are reviewed on an annual basis. Standard CONUS locations are less frequently traveled by the federal community and are not specifically listed on our website.

Per diem rates are set based upon contractor-provided average daily rate (ADR) data of local lodging properties. The properties must be fire-safe and have a FEMA ID number. The ADR is a travel industry metric that divides room sales rental revenue by the number of rooms sold. All rates are evaluated to ensure that they are fair and equitable in the GSA and Office of Management and Budget approval process. For more detailed information, visit the Factors Influencing Lodging Rates page.

5 U.S.C § 5702 gives the Administrator of the U.S. General Services Administration (GSA) the authority to establish the system of reimbursing Federal employees for the subsistence expenses (lodging, meals, and incidentals) of official travel. The law governs how GSA sets rates today, and allows the GSA Administrator to establish locality-based allowances for these expenses with a reporting requirement back to Congress. The law was established to protect Federal employees by fairly reimbursing them for travel expenses. In addition, if a Federal employee cannot find a room within the established per diem rates, the travel policy allows the agency to reimburse the actual hotel charges up to 300 percent of the established per diem rates.

The per diem program has several standards that it follows in its systematic structured per diem methodology. The first level is having a "standard rate" that applies to approximately 85 percent of counties in the continental United States.

It is GSA's policy that, if and when a Federal agency, on behalf of its employees, requests that the standard rate is not adequate in a specific area to cover costs of travel as intended by the law, GSA will study the locality to determine whether the locality under study should become a "non-standard area." If the study recommends a change, a change will be implemented as deemed appropriate. GSA has implemented a process to review and update both the standard and non-standard areas annually.

The standard "boundary line" for where non-standard areas apply is generally one county. This is the case for approximately 85 percent of the non-standard rates that GSA sets. However, in some cases, agencies have requested that the rate apply to an area larger than one county, such as a metropolitan area. In a very small number of cases, an agency can and has requested that a rate apply to just a city and not the entire county. In some rural areas, a rate sometimes applies to more than one county due to lack of an adequate data sample to set a rate otherwise.

GSA uses the Federal Information Processing Series (FIPS) code standard for its apply areas. While GSA often uses ZIP codes to select hotel data samples, the apply area is coded by a FIPS code, unless a Federal agency only wants the rate to apply to certain ZIP codes. These codes are managed by the American National Standards Institute (ANSI) to ensure uniform identification of geographic entities through all federal government agencies.

In order for GSA to conduct a "special" review of a non-standard area (NSA) during the current fiscal year, a Federal Agency Travel Manager or an equivalent individual in grade or title must submit a signed letter on agency letterhead or stationery stating that the present per diem rate is inadequate. The request should contain the following information:

• The geographical areas you want us to study, especially ZIP codes.
• The property names (including addresses, ZIP codes, and rates) where your federal travelers stay while on temporary duty travel and those properties (including addresses, ZIP codes, and rates) that will not honor the federal lodging per diem rate.
• The number of times actual expenses were used and/or federal travelers had to use another lodging facility to stay within the maximum allowable lodging per diem rate, which resulted in additional transportation expenses (rental car, taxi) being incurred.

All valid requests postmarked no later than 12/31 will be eligible for this review. All valid requests received after 12/31, but before 4/1 will be evaluated during the following fiscal year's annual review cycle. After all the requirements are submitted, GSA will obtain updated data from our contractor to determine whether a per diem rate should be increased, decreased or remain unchanged. We will conduct no more than one "special" review for a particular NSA annually.

Letters should be sent to: General Services Administration, Office of Government-wide Policy, 1800 F St. NW., Washington, DC 20405. For more direct service, please also scan and email your request (a signed letter on agency letterhead must be attached) to [email protected] .

The procedure and the request deadline are the same as FAQ #6. However, requests received after 3/31 will not be included in the following fiscal year's annual review cycle because the annual review will have already begun.

If a city is not listed, check to ensure that the county within which it is located is also not listed. Visit the Census Geocoder to determine the county a destination is located in. If the city is not listed, but the county is, then the per diem rate is the rate for that entire county. If the city and the county are not listed, then that area receives the standard CONUS location rate.

Hotels are not required to honor the federal per diem rates. It is each property’s business decision whether or not to offer the rate. Hotels also may or may not choose to extend the rate to other individuals, such as government contractors.

Hotels sometimes offer a "GOV" rate, which might be different than the federal per diem rate. If it is higher, you need to receive approval for actual expense prior to travel in order to receive full reimbursement. It is the traveler’s responsibility to know the federal per diem reimbursement rates, and should not assume a GOV rate is the same as the federal per diem rate. See the FTR Chapter 301, Subpart D-Actual Expense and follow your agency's guidelines.

Lodging taxes are not included in the CONUS per diem rate. The Federal Travel Regulation 301-11.27 states that in CONUS, lodging taxes paid by the federal traveler are reimbursable as a miscellaneous travel expense limited to the taxes on reimbursable lodging costs. For foreign areas, lodging taxes have not been removed from the foreign per diem rates established by the Department of State. Separate claims for lodging taxes incurred in foreign areas not allowed. Some states and local governments may exempt federal travelers from the payment of taxes. For more information regarding tax exempt status, travelers should visit the State Tax Forms page.

Yes, the meals and incidental expense (M&IE) rate does include taxes and tips in the rate, so travelers will not be reimbursed separately for those items.

The Federal Travel Regulation Chapter 300, Part 300-3 , under Per Diem Allowance, describes incidental expenses as: Fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

An M&IE study has traditionally been conducted every three to five years. Based upon the recommendations of the Governmentwide Travel Advisory Committee, GSA began reviewing rates every three years starting with rates for FY 2016.

On the first and last travel day, Federal employees are only eligible for 75 percent of the total M&IE rate for their temporary duty travel location (not the official duty station location). For your convenience, the M&IE breakdown page has a table showing the calculated amount for the "First and Last Day of Travel."

For federal employees, the Federal Travel Regulation (FTR) does not make a provision for "mixing and matching" reimbursement rates. The lodging per diem rates are a maximum amount; the traveler only receives actual lodging costs up to that maximum rate. Therefore, there is no "extra" lodging per diem to add to the M&IE rate. Likewise, the M&IE per diem cannot be given up or transferred to lodging costs. See FTR 301-11.100 and 301-11.101 for more information.

For any official temporary travel destination, you must provide a receipt to substantiate your claimed travel expenses for lodging and receipts for any authorized expenses incurred costing over $75, or a reason acceptable to your agency explaining why you are unable to provide the necessary receipt (see Federal Travel Regulation 301-11.25 ).

You may ask your agency to authorize the actual expense allowance provision. The Federal Travel Regulation (FTR) 301-11.300 through 306 notes that if lodging is not available at your temporary duty location, your agency may authorize or approve the maximum per diem rate of up to 300% of per diem for the location where lodging is obtained. You should also ensure you have checked www.fedrooms.com to confirm there are no rooms available at per diem in the area where you need to travel.

According to the Federal Travel Regulation (FTR), travelers are entitled to 75% of the prescribed meals and incidental expenses for one day travel away from your official station if it is longer than 12 hours. Please see FTR 301-11.101 .

GSA establishes per diem rates and related policies for federal travelers on official travel only, and cannot address specific inquiries concerning the payment of contractors. If the contractor is on a federal contract, check with the contracting officer to see what is stated in their contract. Contractors should also check the travel regulations of their company.

GSA establishes per diem rates, along with its policies for federal employees on official travel only. Truck-related questions should be addressed either to the Department of Transportation ( www.dot.gov ) or the Internal Revenue Service ( www.irs.gov ).

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

• Forecasting

7  comments

Traffic Impact Study Improvements: Part 5 – When is a Trip Not a Trip?

By   Mike Spack

October 27, 2015

Guest Post by Bryant Ficek, PE, PTOE, Vice President at Spack Consulting

Earlier this year, I detailed how our standard process for a Traffic Impact Study has several points of assumptions at best or guesses at worst. This post continues that discussion.  Check out the “ Top 6 Ways to Pick Apart a Traffic Study ” for more on the general topic and expect more posts to follow on this subject.

Trip generation is the process of estimating the amount of traffic a proposed development will have once it is built and operating. Trip distribution is the process by which we take the raw projected traffic for a development (trip generation) and add it to the existing volumes on the transportation network. The step in-between is determining whether all the trip generation will be new to the roadway.

To start with, there are several types of trips as follows (with definition summarized from the Institute of Transportation Engineers or ITE). The figure below illustrates the different types of trips.

• Primary or New.  Traffic with the specific purpose of visiting the site being studied.
• Pass-By.  Traffic already on the way from an origin to a primary trip destination that will make an intermediate stop at the site being studied without a route diversion.
• Diverted. Traffic attracted to the site being studied from adjacent facilities without direct access to the site. A diverted trip example is a through trip on a freeway that diverts to an exit and a development, adding traffic to the local road but removing traffic from the freeway.
• Internal.  Traffic associated with multi-use developments where trips among various land uses can be made on the site being studied without using the major street system. These trips can be made either by walking or by vehicles using internal roadways.

These different trip generation options, combined with so many different types of land uses, leads to virtually limitless possibilities for the amount and type of traffic a particular site could generate on the roadway system. As with our trip distribution column, we initially thought about testing multiple scenarios, which would be relatively easy with today’s software. At least, theoretically. To restate our collective conclusion – While interesting on a pure research level, a thicker actual traffic impact study report covering multiple results leads us down a path no one wants to go.

Furthermore, sub-dividing the raw trip generation into parts is not something that can be quantified into a “one-size fits all” equation. Given the possibilities and the limits of our collective traffic research to date, ITE provides the best procedure to follow. So this article is dedicated to reviewing that procedure, which is spelled out in ITE’s Trip Generation Handbook and Trip Generation Manual, Volume 1 . That step-by-step process is as follows:

• Raw Trip Generation.  Using ITE or other land use information (try tripgeneration.org !), calculate the raw trip generation for the site.
• Pass-By and Diverted Number of Trips. Use either local data or ITE data to determine a percentage of the reduced trip generation that is pass-by or diverted. Similar to the ITE Trip Generation data, both pass-by and diverted trip percentages are available by average rate or an equation for many land uses. Use this percentage to calculate the total pass-by and diverted trips for the site.
• Pass-By and Diverted Trip Patterns. Use the existing traffic to determine how the pass-by and diverted trips will access the site.
• Pass-By and Diverted Trip Volume Adjustment. Apply the existing traffic patterns to the pass-by and diverted trips to establish the impact on the roadway system for these trips.
• Remaining Primary/New trips. Determine the remaining trip generation after reducing for internal trips and then removing the pass-by and diverted trips.
• Primary/New Trip Pattern. We discussed factors to consider for the primary/new trip distribution in Part 4 of this series.
• Primary/New Trip Volume Adjustment . Apply the trip distribution to the primary/new trips to determine the impact on the roadway system for these trips.
• Final Volumes. Combine the pass-by, diverted, and primary/new trips at each study intersection to determine the final impact of the site being studied.

We can demonstrate this process on a theoretical study site with the following characteristics:

• 17,000 square feet of office, 3,000 square feet of fast food with a drive-thru, and 10 vehicle fueling positions at a gas station with convenience market
• One driveway accesses the site off a busy road (1,000 vehicles in the p.m. peak hour)
• A highway interchange with the busy road is located just east of the site
• Trip Generation (PM Peak)
• General Office, Land Use 710 – 98 raw trips
• Fast Food with Drive Thru, Land Use 934 – 98 raw trips
• Gas Station with Convenience Market, Land Use 945 – 136 raw trips
• Internal Trips

4. Pass-By and Diverted Patterns (per the theoretical roadway data)

6. Remaining Primary/New trips:

• Office – (98 raw – 5 internal – 0 pass-by – 0 diverted) = 93 primary/new trips
• Fast Food – (98 raw – 21 internal – 43 pass-by – 23 diverted) = 11 primary/new trips
• Gas Station – (136 raw – 22 internal – 57 pass-by – 26 diverted) = 31 primary/new trips

7.  Primary/New Trip Pattern (per knowledge of theoretical area)

8.  Primary/New Trip Volume Adjustment

9.  Final Volumes (add the pass-by, diverted, and primary/new trips together)

We don’t include all of the above example graphs in our reports. Instead, our short-hand method is a trip generation table that looks like this:

As a final note, the internal, pass-by, diverted, and new percentages are often adjusted from the base ITE information. ITE itself notes the limited amount of data available and the inherent variability in surveyed sites. The best approach, if possible, is to discuss the percentages with the governing agency to achieve agreement and buy-in before you get too far down the path in your analysis.

Did you miss the other installments of the  Traffic Impact Study Improvements series? Here are the links to the other articles:

• Part 1 – Traffic Counts
• Part 2 – Would Multiple Results Help Us?
• Part 3 – All Trips are Equal, But Some Trips are More Equal Than Others

At what point would you apply a reduction for non-SOV trips such as transit? It looks like ITE would have you apply internal capture, transit and then pass-by.

very precious and informative post…thanks so much..I had found the answer of one of my question in another post of yours..thanks for sharing your experiences

Sometimes I drive right by a coffee shop and then think, hmm, I could really use a good cup of black coffee and then I turn around and go back. Is this a pass-by trip or a diverted trip (or both?). What about a cappuccino?

If the need for java hit as you approached the site, and you turned right in, this would be a standard diversion. But since you passed the driveway and turned around, ….you need to take public transit and stop burning up our resources.

Hey Mike, After you do trip gen. calcs (let’s say for a built-up year 2029) but you want to consider design year (typical 20 years) and you want to design/improve nearby roads for the design year 2049 (2029 + 20 years); do you apply same growth rate on trip generated as you would do for existing traffic? or you apply the growth rate on existing traffic, and use trip gen numbers without applying a growth rate?

No – the growth rate is not applied to the trip generation. For instance, the trips generated by a single family home isn’t going to keep growing over time. They’re assumed to be static.

My mission is to help traffic engineers, transportation planners, and other transportation professionals improve our world.

Get these blog posts sent to your email! Sign up below.  

Session expired

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Get our information in your Inbox!

Sign up below to stay informed

Definition of 'return trip'

Return trip in british english.

Examples of 'return trip' in a sentence return trip

Browse alphabetically return trip.

• return ticket
• return touchdown
• return train
• return trip
• return triumphantly
• return visit
• return voluntarily
• All ENGLISH words that begin with 'R'

Quick word challenge

Quiz Review

Score: 0 / 5

Wordle Helper

Scrabble Tools

Per diem: Meaning, Calculation, and 2024 Rates

If your employees travel for business, whether it’s internationally or locally, you might consider covering these costs by providing them with per diem pay. Per diems can be a great way to simplify expense management in your business and provide your employees with a predictable daily budget to cover their essential travel expenses.

So, what is a per diem, and what are the government per diem rates for 2024?

This article will explore the meaning of per diem and what businesses need to keep in mind when they calculate business travel expense reimbursements for their employees. We will answer common questions including “What is per diem pay?”, “What is a standard per diem meal allowance?”, and “What are the GSA per diem rates for 2024?”. We will also highlight how using software to centralize your expense management processes can help you streamline expense tracking, simplify your reimbursement procedures, and ensure compliance with per diem policies and regulations.

Per diem meaning

How does per diem work, how is per diem calculated, gsa per diem rates 2024, is per diem taxable.

• FAQ about Per Diem 
• Save time, and headaches with this Expense Management Software ⭐️

Let’s start with the meaning of per diem.

Per diem, derived from the Latin for “by the day”, is a daily allowance that covers expenses that an employee incurs while traveling or on official business. These expenses include meals, lodging, transportation, and incidental costs incurred during a trip. Traveling employees can spend up to this defined amount each day to cover their essential expenses without expense reimbursement approval.

For example, if an employee is on a business trip and their company provides a per diem rate of $100, it means they are entitled to spend up to $100 per day on expenses related to the trip. Any amount spent beyond this allowance would typically be the responsibility of the employee, while any unspent amount might not be reimbursed.

This system simplifies the out-of-pocket reimbursement process and provides a standard daily allowance so that employees do not need to submit detailed receipts for every individual expense. It is commonly used in the business world, government, and various other organizations that require their employees to travel for work purposes.

What about per diem jobs? What does per diem work mean?

This is a slightly different concept. A per diem job is an employment arrangement where individuals are hired on a day-by-day or as-needed basis, typically without a long-term commitment or fixed schedule. In this type of job, common in industries including healthcare and hospitality, employees are considered temporary or on-call workers, available to fulfill specific duties whenever the employer requires their services. We won’t be focusing on this in today’s article.

We’ve explored the per diem meaning, so now let’s take a look at how it works, exactly.

Per diem rates

Organizations, companies, or governments set per diem rates based on the location of travel and the purpose of the trip. Different places may have different rates due to variations in the cost of living and travel expenses. We’ll expand on this below.

Calculation of per diem

Most organizations determine the per diem amount by considering the following expenses:

• Meals.  Covers breakfast, lunch, dinner, and any incidental snacks.
• Lodging.  Covers the cost of the hotel or other accommodation.
• Incidentals.  Covers small miscellaneous expenses like tips, transportation to and from the airport, or other minor costs.

More on calculations below.

Reimbursement

When an employee goes on a business trip, they can claim an allowance for each day they are away. They usually do not need to provide itemized receipts, as the per diem rate is meant to cover everything. You calculate the total reimbursement by multiplying the PD rate by the number of days spent on the trip.

Total reimbursement also takes the following into account:

• Partial days. For arrival and departure days, when the traveler doesn’t spend the full day away, the daily allowance may be prorated based on the time spent on the trip.
• Non-reimbursable expenses. Some organizations may specify certain expenses that are not eligible for reimbursement. For example, personal expenses or alcohol might not be covered.

Unused per diem

If a traveling employee spends less than the allowance rate on a given day, you might decide to allow them to keep the unused portion of the allowance. However, some organizations require employees to return any excess funds not spent during the trip. Ultimately, though, this will depend on each company’s expense policy.

Accounting and reporting

Finally, accounting and reporting are vital aspects of the per diem system, ensuring accuracy and adherence to the organization’s policies. When employees go on a business trip and incur eligible expenses, they must follow specific procedures for accounting and reporting:

• Expense tracking. Employees must track their expenses during the trip. They must also note any additional costs beyond the fixed per diem rates, such as transportation expenses.
• Per diem reimbursement requests. After the trip, the employee submits a detailed expense report to the finance or HR department. The report includes the trip dates, purpose, destination, and daily expense breakdown.
• Per diem vs. actual expenses. The report distinguishes between per diem expenses and actual expenses, if applicable.
• Receipts and documentation. Depending on each organization’s policies, employees may need to submit itemized receipts as proof of incurred expenses.
• Approval and reimbursement. Finance reviews and approves the report. They then reimburse employees for any eligible expenses.
• Unspent allowances. Employees might retain any unused per diems if expenses were below the allowance. However, this will depend on each organization’s internal policies. The same applies to any excess allowances not used appropriately.
• Auditing and record keeping. Organizations must retain detailed per diem records, receipts, and expense reports. This enables efficient auditing and ensures tax compliance where appropriate.

The best way to manage all the above is by using expense management software tools . The right solution can help you create an efficient per diem request system, and ensure accurate reimbursement and financial transparency. More on this below.

The way you calculate per diem rates will depend on a variety of factors. This includes the location of travel, the purpose of the trip, and the standard cost of living in the area. However, the specific process can vary depending on the organization or government agency setting the rates.

Nonetheless, here’s a general outline of how organizations typically calculate per diems  to give you an idea.

Location plays a crucial role in determining per diem rates. This is because the cost of living, accommodation expenses, and meal costs can vary significantly from one location to another.

Let’s explore some factors related to location in the context of per diem calculation:

• Cost of living. Rates are often higher in cities or areas with a high cost of living. These locations tend to have more expensive meals, accommodation, transportation, and other daily expenses.
• International travel. For international travel, factors such as currency exchange rates, local economic conditions, and cultural factors can affect rates. Governments and organizations may have different rates for various countries to reflect these variations.
• Seasonal variations. Seasonal variations in travel demand can also impact rates. Popular tourist destinations may have higher rates during peak seasons when demand for accommodation and services is at its highest.
• Travel restrictions. Finally, travel restrictions, security concerns, or political stability in certain regions can influence rates. For example, some locations with high-risk factors might have lower rates to discourage unnecessary travel.

Meals and Incidental Expenses (M&IE)

Meals and Incidental Expenses (M&IE) cover an employee’s daily food allowance and minor miscellaneous expenses during business travel. The M&IE rate is typically calculated based on the location and duration of the trip.

Here’s a closer look at what M&IE includes and how it functions:

• Meal expenses. The M&IE portion of a per diem covers expenses related to meals. This includes breakfast, lunch, dinner, and any incidental snacks or refreshments consumed during the day. Per diem rates for meals can vary depending on the time of day and the specific location.
• Standard meal allowances. M&IE rates are often set by the government or organizations based on established guidelines. For instance, the General Services Administration (GSA) in the United States provides standard M&IE rates for various locations within the country, which can change annually to reflect fluctuations in food costs.
• Incidental expenses. Apart from meals, M&IE can also include incidental expenses, which are small miscellaneous costs incurred during the trip. These might include tips for hotel staff, bellhops, or other service providers. They might also include transportation to and from the airport or local business-related transportation expenses.

Federal or standard rates

Federal or standard rates refer to the predetermined per diem allowances established by the government or relevant authorities for specific locations or regions within a country. In the United States, for example, the General Services Administration (GSA) sets the federal per diem rates for various cities and regions. These rates are designed to reflect the average expenses an individual is likely to incur while traveling for official government business.

Federal or standard rates take into account factors such as the cost of living, accommodation, and meal expenses in each location. The government usually updates these rates annually to align with changing economic conditions and travel expenses. As a result, these rates provide a convenient and uniform way for government employers to reimburse employees for their business-related travel without the need for detailed receipts.

While federal or standard rates are typically used for government-related travel, private companies and organizations can also adopt these rates as a reference point for setting their own per diem policies. That way, they can ensure consistency and fairness in their expense reimbursement policies.

Lodging rate

Most organizations calculate the lodging portion of the per diem according to the average cost of accommodation in the area. This usually depends on hotel rates or other approved lodging options.

Total per diem

The total per diem is the sum of the M&IE rate and the lodging rate.

In other words:

Total Per Diem = M&IE rate + Lodging rate.

So, for example, if the M&IE rate for a specific location is $60 per day, and the lodging rate is $100 per day, the total per diem for that location would be $160 ($60 + $100).

Exclusions and adjustments

Some organizations might exclude certain expenses from the per diem, such as travel between the traveler’s home and the destination or expenses related to conferences or events with provided meals.

Per diem reviews and updates

Organizations, companies, or government agencies should regularly review their per diem practices to ensure they remain relevant, fair, and in line with current economic and travel conditions.

This process is crucial because:

• Economic factors, such as inflation, fluctuations in living costs, and changes in travel expenses, can impact per diem rates. Regular review allows you to make adjustments to keep rates up-to-date and reflective of current conditions.
• The cost of living directly influences per diem rates in certain locations. As the cost of living changes over time, you should review your per diem rates regularly to accommodate these shifts.
• Organizations might observe changes in travel patterns, such as shifts in the frequency or destinations of business trips. This information can help you determine whether you need to adjust your per diem rates to match new travel trends.
• Reviewing and updating per diem policies regularly promotes transparency and openness within the organization. This is because employees understand that you are continuously evaluating your rates to meet their needs.
• Finally, for government employees or contractors, per diem rates are usually based on official government guidelines. Periodic review ensures that the organization aligns its rates with any updates or changes in these guidelines.

In the U.S., Federal per diem reimbursement rates are set by the General Services Administration (GSA), in collaboration with the Department of State (DoS), and the Defense Travel Management Office (DTMO). These GSA per diem rates, set on October 1 each year, are used by Federal agencies to reimburse their employees for expenses incurred while on official travel.

GSA per diem reimbursement rates are made up of two components: a maximum lodging allowance and a meals and incidental expenses (M&IE) allowance. The standard per diem rate for most locations within the contiguous United States (CONUS), covering approximately 2,600 counties, is $157 per day. $98 of this is allocated to lodging and $59 to M&IE. However, this fiscal year (FY), there are 316 non-standard areas (NSAs) with per diem rates that are higher than the standard federal per diem rates for 2024.

Since FY 2005, maximum lodging allowances have been determined based on the average daily rate (ADR) concept. ADR is a widely accepted metric in the lodging industry, obtained by dividing a property’s room rental revenue by the number of rooms rented, providing the average rate in a specific area. You can find out more information about how lodging per diem rates are determined from the GSA’s official lodging rates webpage .

Business travel per diems in the United States are either taxable or non-taxable, depending on how your employees use them.

Here’s a breakdown of the tax treatment of per diems in the U.S.:

• Non-taxable. A per diem is non-taxable if it meets certain conditions set by the Internal Revenue Service (IRS). To qualify as non-taxable, the per diem amount must be within the federal government’s standard per diem rates for various locations. The General Services Administration (GSA) publishes these rates annually, as we have just seen above. If the per diem does not exceed the GSA standard rates and it is used for legitimate business travel expenses, it is non-taxable income. Employees are not required to keep detailed records of actual expenses when using non-taxable per diem.
• Taxable. If the per diem you provide employees exceeds the federal government’s standard rates or if it is not specifically tied to business travel, you must treat it as taxable income. Per diem amounts that you pay in excess of the standard rates or those that employees use for non-business-related expenses are taxable wages and subject to regular income tax withholding.
• Accountable plan. To ensure proper tax treatment, many employers use an “accountable plan” for per diem payments. An accountable plan is a set of policies and procedures that meet IRS requirements for reimbursing employees for business expenses. Under an accountable plan, you do not include non-taxable per diem reimbursements in an employee’s taxable income, and you treat any excess amount as taxable.

Centralize expense management with Factorial

In today’s dynamic business landscape, where remote work and travel are increasingly prevalent, an integrated and user-friendly expense management solution is essential. With its comprehensive suite of tools, Factorial provides organizations with a seamless and efficient solution for managing time and expenses associated with business travel.

For example, the platform’s time and expense tracking feature ensures that employees can effortlessly log their travel-related expenses, making it easy to keep an accurate record of expenses throughout their journeys. Plus, by enabling real-time tracking, Factorial empowers both employees and employers to stay informed about incurred costs, ensuring transparency and accountability.

Moreover, Factorial’s user-friendly interface for submitting reimbursement requests further simplifies the expense management process. Not only that, but employees can effortlessly submit their expense reports, saving time and reducing administrative burdens. As a result of this streamlined approval workflow, managers can quickly review and approve claims, allowing for a faster reimbursement process.

One of the standout features of Factorial’s expense management tool is the option for corporate expense cards . With these cards, organizations can issue prepaid cards to employees, simplifying expense tracking and reducing the need for out-of-pocket spending. You can seamlessly integrate the cards into the system, allowing for real-time expense updates and easier reconciliation.

Ultimately, Factorial is a solid solution for businesses looking to optimize their per diem management processes, foster better expense control, and empower their employees to focus on what truly matters – achieving their business objectives. Embrace the power of Factorial’s expense management feature and embark on a journey towards greater efficiency, cost savings, and enhanced productivity.

FAQ about Per Diem

1. what is per diem.

Per diem, a Latin term meaning “by the day,” is a daily allowance to cover expenses incurred by an employee while on business travel or official duties. This allowance typically includes costs for meals, lodging, transportation, and incidental expenses.

2. How does per diem work?

Organizations set per diem rates based on the travel location and trip purpose. Employees are entitled to spend up to this daily limit without needing detailed expense approval. The system simplifies reimbursement by negating the need for submitting individual expense receipts.

3. What expenses are covered by per diem?

Per diem covers:

Meals: Breakfast, lunch, dinner, and snacks. Lodging: Hotel or other accommodations. Incidentals: Minor expenses like tips and local transportation.

4. How are per diem rates calculated?

Per diem rates depend on:

Location: Reflecting local cost of living and travel expenses. Meals and Incidental Expenses (M&IE): Covering daily food and minor expenses. Lodging: Based on average local accommodation costs.

5. How is per diem reimbursement handled?

Employees claim an allowance for each travel day. The total reimbursement equals the per diem rate times the number of days. Organizations may require return of unspent funds or allow employees to keep them, depending on their policy.

6. What are the accounting and reporting requirements for per diem?

Employees must track expenses and submit a report post-trip, detailing trip dates, purpose, and expenses. Organizations review these for approval and reimbursement.

7. Are per diem rates the same for all locations?

No, they vary based on location due to differences in living and travel costs. Organizations often use federal or standard rates as a benchmark.

8. Is per diem taxable?

In the U.S., per diem is non-taxable if it aligns with federal rates and is used for legitimate business expenses. Amounts exceeding standard rates or used for non-business purposes are taxable.

9. How often are per diem rates reviewed and updated?

Organizations should regularly review and adjust per diem rates to reflect economic changes, living costs, and travel patterns.

10. What is an effective way to manage per diem expenses?

Using expense management software like Factorial can streamline per diem management, ensuring efficient reimbursement and financial transparency. Factorial provides time and expense tracking, easy report submission, and options for corporate expense cards.

Related posts

Employer’s Guide to Federal Employee Break Laws

Maternity Leave Laws in Florida

Boost your HR with software

See how Factorial powers productivity, engagement, and employee retention.

Book a free demo