PER DIEMS:
Generally speaking, a branch may pay per diem allowances only to members who are considered its employees under the tax laws; it must reimburse a non-employee for his or her actual expenses. Per diem allowances are paid to employees at a daily flat rate for meals and incidental expenses that are reasonably expected to be incurred while the employee is away from home overnight on union business.
The standard meal allowance is for a full 24-hour day of travel. If you travel for part of the day, such as on the days you depart and return, you must prorate the full-day M&IE rate to 75% for each day of travel. Alternatively, you may claim 100% of the allowance if you are away for a regular “9-to-5” business day on the days of travel.
The standard and high cost area meal rates for localities in each state are determined by the federal government’s General Services Administration (GSA) and the IRS allows taxpayers to use the applicable GSA rates in figuring the daily per diem allowance rate and for meal allowance tax deductions.
The easiest way to obtain a listing of the M&IE rates for each state and respective locality is to go online to the GSA website at www.gsa.gov. There is also a column for the First and Last day of travel showing the 75% rate for those days of travel. The IRS website is www.irs.gov and the rates are found in Publication 1542.
Tony Mancheno
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