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.

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Definitions:

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