What is per diem on a business trip? Rules for calculating and paying per diems

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Business trips are business trips that can be carried out within Russia or to other countries. Their term can differ significantly, as it depends on the tasks assigned to the employee sent to another city or country to solve significant work issues. At the same time, he can receive a certain amount of money from the employer. What is a daily allowance? They are represented by a sum of money that is used to live in another city, and money can also be issued for other purposes. To do this, it is estimated how much the employee will have to spend on a trip within one day. They may be provided in advance or based on a report prepared by the staff member after the business trip.

Types of travel expenses

Before sending any worker on any trip, a certain amount of funds must be paid in advance to solve work issues. It is used to pay for the road, renting a dwelling, receiving communication services and other purposes. Additional expenses arise because a person is forced to live outside his home.

The management of each company independently establishes a list of expenses that are covered by the company's funds. Usually such information is fixed in the internal constituent documents of the company.

The most common business travel expenses are as follows:

• travel to the appointed place and back;
• staying in a hotel or rented apartment;
• food during the working day, although companies often do not pay for food;
• other expenses that are allowed by the head of the enterprise, for example, they can pay for increased communication services or the director can issue funds for issuing a passport.

If a trip to another country is required at all, then the employee receives additional compensation for obtaining a visa, passport and medical certificate. He can rely on the fact that it is the employer who will pay the various fees required when entering a country.

What is per diem? These are the means by which an employee is paid for living in another city or country. In addition, other expenses within one day may be included. Information about their size, order of provision and other parameters is recorded in a special position of the company related to business trips. It is allowed to use a differentiated method for calculating these payments, for which the position of the employee sent on a business trip is taken into account.

What is per diem forbusiness trips?

They are represented by the funds needed to rent a dwelling while on a business trip, and the money can also be directed to other significant purposes. Usually, money is paid immediately before the trip, and it is also possible to transfer compensation after the trip.

Each employee should understand what travel allowance and daily allowance are. The first cash is represented by the full payment that the employee can count on after the trip or before it. This includes compensation for numerous expenses associated with the performance of work duties outside the company's office. What is per diem? They are associated with the residence of a citizen in another city or country. Sometimes the employer pays for food or other expenses.

The most common daily allowances include the following expenses:

• residence of a citizen in another region or country, for which an apartment or a hotel room can be rented;
• food using the services of catering establishments;
• paying for city tolls;
• business lunches with contractors;
• attending paid events planned by the head of the company;
• other expenses related to the performance of work duties.

All such expenses are usually recorded in the firm's internal records.

Transfer rules

A company accountant must know what per diems are on a business trip and when they are transferred to an employeeenterprises. The main rules for paying out funds include the following:

• there is no exact information in the legislation on when exactly the money should be transferred, so they can be issued in advance or after the trip;
• if an advance payment is used, then funds are issued only in cash, therefore it is forbidden to transfer them to the employee's bank card;
• preferably, the method of payment of funds should be fixed in the internal regulations of the company;
• The main purpose of the daily allowance is to pay for the residence of a citizen in another region or country;
• most often companies give out money before a trip for a report;
• funds are paid using a special cash order drawn up in the form No. KO-2;
• money is issued for each day of a business trip, which includes weekends and holidays, as well as the days during which the employee was on sick leave.

If the above requirements are violated, the employee may face certain financial difficulties during the trip. Therefore, it is important to know what per diem expenses on a business trip are, what is their optimal amount and when it is advisable to pay them to a hired specialist.

How long is the money issued for?

Daily allowance includes living expenses, so their size depends on the period of time the specialist goes on a trip. Usually not included in per diem travel or communication fees, as such costs can vary significantly depending on thedifferent situations.

When calculating the daily allowance, the time of departure and arrival in the native region is taken into account. If there are no tickets confirming these dates, then information from cash receipts issued by the administration of the hotel where the employee lives is used. Additionally, a special note from the receiving party may be applied, containing information about the date of arrival and departure of the employee.

If for various reasons the trip is extended, the specialist will be able to count on an increase in the amount received from the employer. Funds are not paid if the business trip lasts one day, and is also carried out within the country. If a one-day trip to another country is required, per diems are paid but are limited.

What to do after a business trip?

Employee must understand what per diem for a business trip is, what is its optimal amount, and how to get it. After the end of the trip, the employee performs the following actions:

• within three days after returning home, a special advance report is submitted to the accountant of the enterprise;
• it is compiled by an employee, and for this you can use a free form;
• this document contains information about what expenses were incurred by the employee during the trip;
• if for various reasons more money was spent than was received by a citizen as an advance, then he can count on an additional payment;
• if there are unused funds, theyreturned to the company.

If an employee for various reasons does not return the remaining money to the cashier, then the employer has the right, on the basis of Art. 137 of the Labor Code to withhold these funds from the salary of a hired specialist.

Are payments mandatory?

Travel expenses and daily allowance must be paid to every worker who is sent on a business trip. They are mandatory and cannot be denied.

The standard amount is given in advance, which is determined by law, but may be increased by the employer. It is the transfer of daily allowances that proves that the head of the company cares about his employee. They are calculated on the basis of the order, as it contains information about the duration of the business trip, the rate of expenses and other important factors.

Have you been cancelled?

In early 2018, information appeared that the Ministry of Finance plans to cancel per diems. The main purpose of this process was to increase income tax. But direct employees of various firms, as well as company executives, spoke negatively about such changes. This issue was constantly discussed in the media.

Due to the negative reaction of the population, the plans of the Ministry of Finance were canceled, so no changes were made to the legislation.

What do they spend on?

All employees of different companies should understand what per diems are and how they are paid. Their mainthe purpose is to pay for the residence of a citizen in another city or country. Additionally, this may include other mandatory expenses that the employee has on a daily basis.

When calculating this indicator, the requirements of the legislation and the information included in the collective labor agreement are taken into account. Often the daily allowance is fixed in the founding documents of the company.

The employee who received the money can spend it for any purpose at his discretion. Most often they are used to pay for hotel stays, food purchases and public transport fares.

When issued?

Advance payment provided. The procedure is performed immediately after the signing of the corresponding order by the head of the company.

If a business trip is canceled within three days, the money received by the employee is returned to the employer. There is no information in the legislation about how long after the issuance of the order the money must be paid.

Procedure for paying money

Every worker going on a business trip should understand what per diems are, what is their size, and how they are assigned. The procedure for transferring money is divided into stages:

• immediately before the trip, the employer informs the employee about the limits set;
• an advance is issued based on these limits and the number of days it will take for a business trip;
• the employee goes directly to the trip, where he uses the money received, taking into account the existing limits;
• after returning to work, he submits a report with payment documents to the accountant, confirming all expenses incurred.

All days during which the employee was on a business trip are paid based on his salary.

Daily allowances

It is necessary to understand not only what per diem is, but also what is their maximum size, established at the legislative level. Namely:

• when traveling in Russia, the limit is 700 rubles. per day;
• if a business trip abroad is required, then this amount increases to 2.5 thousand rubles.

The employer may increase these payments at his own discretion. But the excess amount is subject to tax. Therefore, if an employee spends 1,100 rubles a day in Russia, then from 400 rubles. the employer pays the tax. Due to this, many companies use the above limits, so the daily allowance does not increase at the initiative of the management.

Conclusion

All workers sent on business trips should understand what per diem is, how much it is, and how it is paid. The legislation establishes the norms on which no tax is levied. If they are exceeded, the employer will have to pay personal income tax and insurance premiums.

After the trip, the employee must confirm that he has used all the funds received from the director, for which he draws up a report and prepares payment documents. If he has leftmoney, they are returned to the firm's accountant.