Per diem allowances for business travel
Per diem payments cover lodging, meals, and incidental expenses (M&IE) for employees traveling for business. As part of our comprehensive guide on per diem rates, this article explores per diem meal allowances in Canada. It covers per diem meal expenses by destination, where to find the latest updates on per diem rates for meals, and how to ensure your employees’ per diem reimbursement is classified as non-taxable income.Per diem meals & incidental rates in Canada
Per diem meal rates are meant to cover the cost of meals, while incidental rates are intended to cover minor, out-of-pocket expenses such as tips, local transportation, and other small costs that may arise during travel. These are determined by the CRA and NJC on a yearly basis, and provide individual lodging and M&IE rates for locations all over the world.To find your specific international destination, you can look it up on the CRA website. Expenses are separated into meal types and incidentals and are presented on easy-to-read tables.Managing per diem rates for business travel
Keeping up with changing per diem allowances is a task in itself, but knowing where to go to find the information you need is essential for corporate business travel. Per diem allowances for meal expenses can be spent wherever the employee desires; however, it shouldn’t exceed the allotted budget. If a per diem rate is deemed unreasonable by the CRA it will be considered a taxable benefit to employees.