Per Diem for Electrical Crews on Out-of-Town Jobs

As a result, small electrical contractor businesses need to understand the current per diem rules and rates for out-of-town jobs to ensure compliance. Owners and office managers can use a reliable expense management system, such as one that tracks mileage and lodging expenses, to help them accurately calculate and report their per diem expenses. For the bigger picture, see our guide to electrical contractor expense management software.

Per Diem for Electrical Crews on Out-of-Town Jobs

This means that if your company is paying per diem above the standard rate, you may need to adjust your tax withholding or consider self-employment taxes on the additional amount.

When calculating per diem, consider the time, place, and business purpose of travel. Documenting these details is crucial to substantiate expenses without employees needing to prove actual amounts spent.

Fees and Rates

Per Diem for Electrical Crews on Out-of-Town Jobs

Fees and Rates

The rates vary depending on the locality and the number of days worked. Here's a breakdown of the rates as of October 1, 2026, to September 30, 2027.

• High-cost localities: $329 per day
• Other localities within the continental U.S. (CONUS): $230 per day
• The M&IE (Meals and Incidental Expenses) portion for high-cost localities is $86 per day
• The M&IE portion for other CONUS localities is $74 per day

Understanding Per Diem Laws

The rates are adjusted annually for inflation.

The rates are also adjusted annually for inflation.

When an electrical crew is on an out-of-town job, the owner or office manager must ensure that the crew uses their personal vehicle for business purposes.

The crew must keep accurate records of their business use of the vehicle, including the date, time, and duration of the trip. They must also submit a claim for reimbursement to the owner or office manager. The owner or office manager must review the claim and ensure that it is legitimate and correctly documented.

Managing Labor Costs and Expenses

Department of State and are updated monthly, differing from General Service Administration (GSA) rates for domestic travel. These rates vary by country and are based on the actual cost of living in each destination.

The U.S. Department of State's monthly rate changes, which can be found on their website, provide a benchmark for calculating per diem.

The crew would then multiply this rate by the number of nights they stayed, including any additional nights they spent in local accommodations.

Department of State's website for the most up-to-date rates for each destination.

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.