Understanding Meal Reimbursement Rates and Guidelines
Meal reimbursement is a crucial aspect of business travel, impacting both employee satisfaction and compliance with financial regulations. As of 2025, the standard meal and incidental expense rate for the Continental United States (CONUS) is $68, up from $59 in previous years. This increase reflects the rising costs of dining due to inflation and the resurgence of business travel (44% of companies now set maximum daily rates). Understanding these rates is essential for both employers and employees to ensure proper documentation and compliance with IRS guidelines.
For businesses using meal reimbursement policies, it's critical to maintain compliance with IRS rules. Generally, meal allowances that adhere to GSA per diem rates are not taxable to employees. However, companies must document the date, location, and business purpose of meals. Failure to comply can result in tax penalties, making it vital for businesses to keep accurate records. Harvest aids in this process by allowing users to manually track and categorize meal expenses, ensuring all necessary information is neatly organized.