Can you pocket per diem money?
Can you pocket per diem money? Can you keep unused per diem? If your employer requires you to fill out a per diem expense report and reimburses your spending, then you won't have any leftover funds. But if your employer chooses to pay you a flat amount for per diem instead, then you're generally able to keep any money you don't use.
Is per diem taxed?
Per diem payments are not considered wages—and are therefore non-taxable—as long as they meet certain conditions. You will be subject to taxes if any of the following are true: Payment is more than the allowable federal per diem rate. You did not file an expense report with your employer.