Per Diem payments are for food, lodging and other expenses related to the employee's being away from home while working. The amount is set by the GSA (Government Accounting Office) for the location you are being sent to.
Make good choices on what you spend the money for. The IRS only comes into the picture if you spend more than the Per Diem amount to live away from home. If you spend more then you need to have receipts and can deduct only a percentage of the amounts in excess of the per diem paid. For tax information, check with your tax person.
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