Reimbursement For Travel Expenses 2025. Federal per diem rates consist of. The irs makes it easy for business travelers by allowing the use of “per diem” rates, which are daily allowances to compensate for lodging, meals and incidental.
You can pay a cash allowance to an employee for travel between home and work. 5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys.