It is taxed at whatever your marginal tax rate is. (your federal taxes and state taxes) In other words, it is included as ordinary income. The IRS takes the position that on a day trip, you are the same as any other type of worker, and you buy your own meals. Therefore if the company pays you for this, it is income. On an overnight, the IRS concedes that you will have to buy a meal that you would ordinarily not have to buy, similarly to how someone on a "business trip" is allowed to write off certain meals as a business expense. If the company pays for this, it is reimbursement, not income, thus not taxed. you will have 2 columns; one for taxable per diem, and one for non taxable. In my opinion, just another thing we have to double check to make sure it's right. I'm surprised Spirit is just starting this, my last carrier did this almost 10 years ago.

Disclaimer: I am not an accountant, but I play one at home. And I did sleep at a Holid...............nevermind. That joke is getting old.