Per Diem is the amount provided to a traveler to cover expenses such as food, beverages, meals, meal gratuities, and fees and tips given to porters, baggage carriers, bellhops, hotel maids, stewards or stewardess on ships and hotel individuals in foreign countries. Per Diem is a fixed amount for official travel status and is not a reimbursement for actual costs incurred.
Official Travel Status: the traveler is physically away from their primary work station by a distance of 50 miles or more or includes an overnight stay.
Tips and Gratuity: are included in the Per Diem allowance amount and cannot be claimed separately, even if the gratuity is unrelated to a meal expense. This includes all amounts related to taxi or airport shuttles services, baggage handling, hotel services, or for what gratuities are usual and customary for the services provided.
Per Diem Allowances for Trips with Overnight Stay
The amount reimbursed is limited to the lesser of (a) actual expenditures or (b) whichever of the following maximum applies: For in-state travel -- $45.00 a day; for out-of-state travel --$51.00 a day, or the Federal Rate.
- Breakfast $11.25
- Lunch $15.75
- Dinner $24.75
- Breakfast $12.75 or 25 percent of Federal Rate
- Lunch $17.85 or 35 percent of Federal Rate
- Dinner $28.05 or 55 percent of Federal Rate
- 7 a.m. and after no breakfast
- 11 a.m. and after no lunch
- 5 p.m. and after no per diem
- 8 a.m. and before no per diem
- 2 p.m. and before no lunch
- 7 p.m. and before no dinner
Limitations on Partial Day Reimbursement Without Overnight Stay
In order for reimbursement to be excluded from taxable income, when there is not an overnight stay the travel reimbursement must be ordinary and directly related to the conduct of University business, IRC 274(a)(1)(A).
In those few situations whereby the department has agreed to reimburse outside of the IRC 162(a) and IRC 274(a)(1)(A), reimbursement will be reported as taxable income to the employee. See Administrative Procedures Manual [Section 70.04].
Foreign Per Diem
Foreign Per Diem Rates: The foreign travel per diem allowance (FTPDA) is a payment in lieu of reimbursement for actual expenses. The FTPDA is intended to cover the costs of mandatory service charges, taxes, laundry and dry cleaning. The FTPDA will be based on the most current publications of the U.S. Department of State maximum travel per diem allowances for foreign areas. The daily FTPDA will be 100 percent of the listed M & IE rate in the referenced publication. The actual costs of lodging plus applicable tax and service charge will be reimbursed to the traveler.
Communication While in Travel Status: Telephone -the cost of personal telephone calls to others within the U.S. while on official travel status is allowed. Travelers are allowed to incur the cost of one phone call for each full or partial day of official travel not to exceed 10 minutes per call.
Internet Access: The cost to gain access to the internet at the temporary work location or lodging vendor for official U of I business is allowed. The cost to access the internet aboard airplanes, or other locations may be allowable, provided that a justification is attached to the travel claim that such access is essential in the performance of official U of I business it is not intended for personal convenience or entertainment.
Laundry and Dry Cleaning Services: The cost for laundry and dry cleaning services are allowable if the duration of the official travel exceeds five (5) calendar days.
Entertainment: The cost of entertainment, such as in-room movies, video games, pay-per-view television programs or similar items, are not allowable.