If an Employer Chooses a Per Diem Method of Substantiation

question 55

Multiple Choice

If an employer chooses a per diem method of substantiation for travel expenses,

• A)The Regular Federal Rate method allows employees the same per diem rate no matter where they travel in the United States.
• B)The high-low method averages the high-cost locality and low-cost locality per diem rates to arrive at an average rate.
• C)The meals and incidental expenses method requires actual cost records to substantiate lodging expenses.
• D)Actual expense records substantiating the business reason for the trip and the dates of arrival and departure are not required.
• E)The employer need not use an accountable plan for reimbursing employees for travel expenses.

---

Definitions:

Farming Societies

Societies that are primarily engaged in agriculture, relying on the cultivation of plants and the raising of livestock for their livelihood.

Substantial Contribution

A significant addition or aid provided, which plays an important role in furthering a project, study, or field of knowledge.

Young Boys

Young boys refers to male children or adolescents, typically in the early stages of development prior to reaching puberty.

Sharp Trading

Aggressive or deceitful trading practices that lie on the fringes of legality, often associated with unethical behavior in financial markets.