Question

If an employer meets all of the necessary per Diem requirements, the amount provided to an employee while working out of town is tax deductible for the employer?

1) True
2) False

Answer 1

true

Step-by-step explanation:

Is per diem paid to employees deductible?

Yes, most of the per diem you pay your team is tax deductible. These are considered legitimate business expenses, essential for the performance of employees' duties. This means they can be subtracted from your company's taxable income, potentially reducing your overall tax liability.

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Answer 2

Per diem payments made by an employer to an employee are considered taxable income for the employee.

Step-by-step explanation:

If an employer meets all of the necessary per Diem requirements, the amount provided to an employee while working out of town is tax deductible for the employer. This statement is False. Per diem payments made by an employer to an employee are considered taxable income for the employee. However, the employee may be able to claim certain expenses as deductions on their personal tax return.