Originally Posted by captkdobbs

I think this started showing up in February because of our Jan-Dec per diem setting timing.

This year's international per diem exceeds the GSA (federal) maximum daily allowance. The amount that exceeds the GSA rate is subject to withholdings and social security. When we get our 2026 W-2, it'll show up under one of those weird letter codes as taxable income.

More information is available with a search using the phrase "perdiem that exceeds federal limits"