What Is A Per Diem?
Per Diem, Latin for “per day” or “for each day” is a common business term for the amount of money that is given to an employee, student or other individual for their daily needs.
You might ask yourself why an employer would opt to hand out a per diem rate instead of requiring an expense report. It seems that the more detailed expense report would cover all of the necessary costs accurately.
There are actually 2 good reasons.
- Cost savings
- Less work (for both sides)