Discussion:Per Diem: High-Low Method or General Method

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Discussion Forum Index --> Tax Questions --> Per Diem: High-Low Method or General Method


Taxman 55 (talk|edits) said:

6 January 2007
I'm having a mental block on this. Maybe someone can help me out. The High-Low Method is only for Employer reimbursing employees for lodging and M&I on a per diem basis, right? The employer may elect to use either the High-Low Method or the General Method. The High-Low Method seems to be alot higher rate than the general method. My question in all this, is why would (or under what situations) would an employer choose one method over another? I've only had a business use the General Method, but was wondering why the other even exists.

Any comments or suggestions? Thanks!!

Taxman 55 (talk|edits) said:

22 July 2007
Just thought I'd bring this to the top of the board. I've got a client asking about the difference between the High-Low Method and the General Method for Lodging per diem. The more I read on it the more confused I get. Anybody have a simple explanation on the differences on them?

Death&Taxes (talk|edits) said:

22 July 2007
Go to Page 30 of Publication 463.....it would appear if you did not want to continually look up locations, you would adopt the High-Low methods while keeping a list of those places qualifying for high reimbursement rates handy in the desk.

TheTinCook (talk|edits) said:

22 July 2007
The High-Low method is just a simplified method of computing the federal per diem. The advantages of using the High-Low method are that the tables are only updated once a year, and they are much shorter. However, the High-Low method can only be used in the CONUS.

The regular federal per diem tables have more detail and are updated often so you'd need to check the current tables.

Publication 535 has a pretty good explanation of the methods.

Rreaganea (talk|edits) said:

8 July 2008
I am trying to determine the per diem rate for an individual traveling on business outside of the United States. Can someone direct me to the correct code section?

Solomon (talk|edits) said:

9 July 2008
Foreign Rates.

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