Construction Per Diem Policy Template
A practical, data-backed guide to controlling costs and automating expense workflows.
To ensure fair reimbursement for employees while protecting the business, a well-defined policy is essential. Implementing a solid per diem policy can be achieved with construction expense management for under $10/user (2026), helping to minimize administrative burdens and optimize financial performance. For a complete overview, see our expense management guide.
For taxpayers in the transportation industry, the M&IE rates are $80 per day for travel within the continental U.S. (CONUS) and $86 per day for travel outside the continental U.S. (OCONUS).
To ensure compliance, check the General Services Administration (GSA) website for the most up-to-date rates.
Determining Eligibility and Exemptions
They must deduct actual travel expenses on their own tax returns.
To determine employee eligibility, consider the following:
- Check if the employee is on a business trip or has incurred expenses related to their job duties.
- Verify that the employee has a valid business purpose for their travel.
- Ensure the employee is not using the per diem reimbursement for personal expenses.
Exemptions to the per diem reimbursement policy may include:
- Employees who work remotely and do not incur travel expenses.
- Employees who are not required to travel for their job duties.
Implementing an Accountable Per Diem Plan
Employers must also keep records of per diem payments, including receipts, invoices, and expense reports. Employees must substantiate their expenses with itemized receipts and provide them to the employer within a reasonable time, typically 60 days.
Employers should also consider providing a written notice to employees explaining the per diem policy, including the rates, eligibility, and requirements for substantiation and reimbursement.
Employers should maintain accurate and detailed records of per diem payments, including dates, amounts, and purposes of payments.
Common Mistakes to Avoid and Compliance Issues
- Not maintaining accurate records: Keep detailed records of employee expenses, including receipts, dates, and locations. This will help ensure compliance and avoid disputes.
- Exceeding the standard meal rate: The standard meal rate is the maximum amount that can be reimbursed without requiring documentation.
- Not following the accountable plan rules: To qualify as an accountable plan, your per diem plan must meet certain requirements, including requiring employees to substantiate expenses and returning any excess amounts.
Per Diem Policy Template and Sample Language
Below is a sample per diem policy template for your reference. You can modify it to suit your business needs.
This template provides a basic outline of the key elements to include in your policy.
| Policy Name | Per Diem Policy for [Company Name] |
|---|---|
| Effective Date | January 1, [Year] |
| Scope | This policy applies to all employees who incur expenses while traveling on company business. |
| Per Diem Rates | $50 per day for meals and incidentals]. |
| Eligibility | Employees are eligible for per diem reimbursement if they are on company business and incur expenses for meals and incidentals. |
| Limitations | The company will not reimburse employees for expenses exceeding [dollar limit] per day. |
| Record Keeping | Employees must maintain accurate records of expenses, including receipts and itemized statements. |
| Reimbursement | Reimbursement will be made within [timeframe, e.g. 30 days] of receipt of expense report. |
| Amendments | This policy may be amended at any time by [Company Name]. |
- Insert union agreement language, if applicable, regarding per diem amounts.
- Review and update this policy annually or as needed.
Keeping this simple: Incurdesk keeps receipts and approvals in one place, which makes a written policy easier to follow. It is built for small construction teams. Try it free.
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