2015 Per Diem Rates Updated

Effective October 1, 2014, the per diem rates for normal business expenses incurred while traveling on approved business activities have been updated.

These rates apply to companies that do not use an accountable plan. Under this plan structure, employees are required to keep strict records of expenses incurred and submit them to the company for reimbursement. This often leads to a complex and tedious records management process for both the employee and company. These new rates apply to companies that use IRS per diem rates to reimburse employee travel expenses.

Changes for 2015

There have been a few changes that companies should be aware of going into 2014. This includes an increase in the per diem rate for high-cost areas to $259, an increase of $8 over 2014. The new rate included $194 for hotel and $65 for meals and incidental expenses. The rates for low cost areas have increased, but only by $2. The new rate is $172, including $120 for hotel, and $52 for meals and incidental expenses.

The list of cities and surrounding areas included on the list of high costs areas has been modified. The changes include:

  • New additions to the high cost list include San Mateo, Foster City, Sunnyvale, Palo Alto and San Jose, California. In addition, Glendive, Sidney (MT) and Williston, N.D. have been added to the list.
  • Time periods that were considered high cost have been modified for the following areas: Sedona, Ariz.; Napa, Calif.; Vail, Colo.; Fort Lauderdale, Fla.; Miami; and Philadelphia.
  • The following areas have been removed from the high cost list including: Yosemite National Park, Calif.; San Diego; and Floral Park/Garden City/Great Neck, N.Y.

Contact Us

Have a question about the updated per diem rate schedule? We want to help! For additional information on the 2015 per diem rates, contact Hanson & Company at (303) 338-1010 or click here to contact us.

TaxNate Galuzzi