Per Diem for employer

[jshtax]

Can an employer take a deduction for per diem on their corporate return if they paid expenses directly to merchant? For example they pay $50 hotel room on books they debit distributions and credit cash then do an entry to debit travel expense $141 (per diem) and credit distributions.

[Mr. Pencil]

travel expense $141 (per diem)

Where did you get that rate from?

[jshtax]

It was an example.

[Mr. Pencil]

It was an example.

Okay. I wondered, because as far as I know there isn't any per diem rate for the situation described. Per diem can only be used on Schedule C and Form 2106, or for reimbursement under an accountable plan..

[Terry D EA]

That was going to be my question asking if there was an accountable plan. If not, they can deduct the expenses if the employee turned in receipts or they themselves pre-paid the expenses which of course they would/should have the receipt.

[Mr. Pencil]

asking if there was an accountable plan. If not, they can deduct the expenses if the employee turned in receipts

If there is no accountable plan the employer can only deduct reimbursement as taxable wages, so the employee should keep the receipt for Form 2106.