Per Diem

Per Diem is a standardized daily payment provided to employees to cover business-related travel expenses without requiring detailed expense tracking. In the US, the IRS sets per diem rates for different locations, which companies often use as guidelines. These payments simplify reimbursement processes and reduce administrative burden. If paid within approved limits, per diem is typically not considered taxable income. For startups, using per diem can streamline travel expense management while maintaining compliance and cost predictability.