The IRS has simplified per diems for lodging, meals and incidentals for 2023.
Employees can get up to $297 tax-free daily in high-tax areas; $204 in other locales. Firms using this method can apply the new rates on Oct. 1 or wait until Jan. 1, 2023.
For meals and incidentals only, the rates stay at $74 a day in high-cost areas and $64 elsewhere. Self-employeds on travel can use these rates, but their lodging costs must be substantiated separately. They cannot use the full $297/$204 per diems.
To view a list of high-cost localities and other details, refer to IRS Notice 2022-44.