Hopefully your per diem is not taxed if it does not exceed government rules or regulations. At our ACMI we have fallen into the taxable per diem hit list as it exceeds government standards at times depending on location or city if you will. $100 is a high daily rate, just be prepared if it is taxed a bit on the excess over any government rate stipulated. Understand the situations below.

Taxes on Per Diem Reimbursements

Per diem payments are not considered wages—and are therefore non-taxable—as long as they meet certain conditions. You will be subject to taxes if any of the following are true:

• Payment is more than the allowable federal per diem rate
• You did not file an expense report with your employer
• Your expense report did not include the date, time, place, amount, and business purpose of the expense
• Your employer gave you a per diem and didn't require an expense report.

If any of the above situations are true, your per diem will be considered wages and will be subject to income tax withholding and payroll taxes.10 The amount will be reported by your employer on your W-2 form. If it is just that your per diem was above the allowable federal per diem rate, only the excess amount will be considered wages.