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Exploring Lodging and Meal Allowances

Objective

After completing this lesson, you will be able to learn about lodging and meal allowances.

Meal Allowance - Overview

Calculating the meal allowance for business travel involves understanding the daily rates and the rules for partial days. The U.S. General Services Administration (GSA) sets these rates, which can vary based on location and time of year.

Trips Lasting between 12 Hours and 24 Hours

For trips lasting more than 12 hours but less than 24 hours, employees receive 75% of the daily meals and incidental expenses (M&IE) rate.

Trips Extending beyond 24 Hours

For trips extending beyond 24 hours, the first and last days are also calculated at 75% of the daily rate, while full days are reimbursed at 100%.

Employees must also account for any provided meals, which reduce the allowance accordingly. This ensures that the reimbursement aligns with federal regulations and avoids overpayment.

Lodging Allowance - Overview

Managing lodging allowances effectively is essential for both travelers and companies. Lodging taxes are included in the published foreign allowance amounts but must be itemized separately for domestic expenses. This means that travelers must be aware of the additional requirements when their lodging expenses exceed the allowed rate.

Understanding these rules ensures compliance and proper financial management during business trips.

Exceeding Lodging Rates

If a traveler stays at a hotel that costs more than the allowed lodging rate, they must personally cover the difference.

Additionally, companies can only bill the government up to the allowance amount, with any excess being treated as overhead.

Special Travel Cases

In certain travel situations, employees may encounter scenarios that fall outside the standard travel allowance policies.

Seasonal Rate Adjustments

When traveling to locations with seasonal rate adjustments, it is crucial to be aware of the peak and off-peak rates to ensure proper reimbursement.

Understanding these rates helps in planning and budgeting for travel expenses accurately.

Exceeding Allowed Lodging Rates

If an employee's lodging expenses exceed the allowed rate, the excess amount and corresponding taxes must be itemized separately.

This ensures that the reimbursement process is transparent and compliant with company policies.

Partial Travel Days

According to US/GSA rules, allowances for the first and last days of travel are calculated at 75% of the regular rate.

Employees must also account for provided meals, which should be deducted from the daily allowance.

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