Higher Per Diem Rates for Fiscal Year 2025 Announced by GSA
It’s time for updates: Higher federal per diem rates for business travel have been released by the General Services Administration (GSA).
The rates cover business travel occurring between October 1, 2024, and September 30, 2025.
These per diem rates can be used to reimburse employees for expenses incurred when traveling within the continental United States (CONUS). Note: That includes the 48 contiguous states and the District of Columbia.
Using the federal per diem rates is less of a headache than asking employees to substantiate each and every expense.
By tracking what’s changed for 2025, Payroll can help ensure that expense reimbursement for business travel doesn’t “take a wrong turn” and become taxable income by exceeding the applicable limits.
October Brings Per Diem Changes
The standard per diem rate can be used in most locations in the CONUS. Currently, it’s $166, and it’ll increase to $178, starting October 1, 2024. That breaks down as follows:
- $110 per day for lodging, up from $107, and
- $68 per day for meals and incidental expenses (M&IE), up from $59.
In some locations of the CONUS, higher rates can be used – the GSA determined there will be 296 of these non-standard areas (NSAs) in the next fiscal year. That’s decreasing from the current number of 302.
No counties will be moving into the NSA category.
However, a handful of locations that have been NSAs will be returning to standard rates for FY 2025. Those six locations are:
- Fort Wayne, IN (Allen County)
- Canton, OH (Stark County)
- Mentor, OH (Lake County)
- East Greenwich/Warwick, RI (Kent County)
- Waco, TX (McLennan County), and
- Wisconsin Dells, WI (Columbia County).
For NSAs, the M&IE rate tiers will range from $68 to $92 per day in FY 2025. The last revision dates back to FY 2022.
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
IRS recently made changes to Form 941. For one thing, a Spanish version of the federal tax form is now available starting with the first qu...
Paying employees by direct deposit is convenient for all involved. But a recent court case is a reminder that funds could end up in cybercr...
In Texas, a routine data upload in mid-March altered how hundreds of employees for the city of Austin were classified for overtime. That er...
As you’re prepping to file Forms W-2 or Forms 1099 for TY 2023, you know it’s tough to avoid all errors. So, it helps to be pre...
Employees with wages exceeding $145,000 in 2023 may hesitate to make catch-up contributions next year. They’ll be impacted by tax cha...
Not all companies handle payroll records the same way. Firms may keep data in multiple systems — payroll, HR, timekeeping and the gen...