Overview
Meals and Incidental Expenses (M&IE) refer to the daily allowance set by the federal government to cover the cost of meals and other incidental expenses incurred by employees during official business travel. M&IE is a category within the broader context of per diem rates, which are used to reimburse employees for travel-related expenses without requiring detailed documentation.
Detailed Definition
M&IE includes the cost of meals and other incidental expenses such as tips, fees, and other small expenditures incurred while traveling on business. The U.S. General Services Administration (GSA) sets the per diem rates for M&IE, and these rates vary depending on the location and duration of the travel.
Examples
- Federal Employees on Business Travel: A federal employee traveling to a conference in a high-cost city such as New York might have a higher M&IE rate compared to a lower-cost city like Des Moines.
- Corporate Travel Policies: Companies often adopt the GSA M&IE per diem rates for their traveling employees, allowing them to claim a daily allowance for meals and incidental expenses without submitting individual receipts.
- International Travel: M&IE rates also apply to international travel, although these rates can be significantly higher due to the increased cost of dining and other expenses abroad.
Frequently Asked Questions
Q1: What constitutes incidental expenses in M&IE?
A1: Incidental expenses typically include tips for porters, baggage handlers, and other service staff, as well as fees for laundry, dry cleaning, and other small, day-to-day expenditures necessary while traveling.
Q2: Can employees claim both M&IE and actual expenses?
A2: No, employees can either claim the M&IE per diem or actual expenses, but not both. This is designed to simplify the reimbursement process and ensure consistency.
Q3: How are M&IE rates determined?
A3: M&IE rates are determined by the GSA and vary based on the geographical location and time of year. Rates are higher in areas with a higher cost of living and during peak travel seasons.
Q4: Do M&IE rates cover alcoholic beverages?
A4: No, M&IE rates do not cover the cost of alcoholic beverages; these are considered personal expenses and are not reimbursable under typical travel policies.
Q5: Are M&IE allowances taxable?
A5: Generally, M&IE allowances are not taxable if they are within the federal per diem rates and the employee provides adequate substantiation of their travel.
Related Terms
- Per Diem: Daily allowance for lodging, meals, and incidental expenses.
- Travel Expenses: Costs incurred during business travel, such as transportation, lodging, and meals.
- Reimbursement: Repayment for expenses incurred, often requiring proof of expenditure.
- General Services Administration (GSA): U.S. government agency that sets per diem rates for federal travel.
Online References
- GSA Per Diem Rates
- IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses
- Federal Travel Regulation (FTR)
Suggested Books for Further Studies
- “Travel and Entertainment Best Practices: How to Implement a Corporate Expense Management Solution” by Caroline Joulin
- “Employee Business Expenses (Tax Bible Series) 2019” by Corey Howden
- “Travel & Expense Management Simplified: The Blueprint for Building a World-class T&E Program” by Mike Mills
Fundamentals of Meals and Incidental Expenses (M&IE): Business Travel Basics Quiz
Thank you for exploring the concept of Meals and Incidental Expenses (M&IE) with our detailed structured content and quiz. Continue honing your knowledge in this essential facet of business travel management!
