If per diem surpasses the allocated GSA amount that portion alone will be taxed hence the W-2 reference. It never showed before until we received higher rates (approximately 3 years ago due to CVD and then the CBA was adapted in 2021); therefore, it was never considered compensation = not taxable. Bottom line: only the taxable amount can be construed as compensation which is minimal at best. While not Federal for the most part, states do have regulatory requirements established for companies to provide per diem as it is a business expense.
*It’s an interesting subject. Only compensation regarding the taxed portion over and above the GSA limit and that’s your proof on paper. On the other hand if you’re home you pay for your food and rent/mortgage, etc. While away from the home front due to your company you should never pay for secondary accommodations or any additional consumables or expenditures - BUT you would have meals either way. Being in higher cost areas for meals makes it all good so there is some benefit perhaps. Mortgage wise per diem is not considered universally. All underwriter dependent.
Last edited by C17B74; 05-10-2023 at 10:21 AM.