*** Article updated February 28, 2025 ***
Are you confused by trucking per diem rules?
Have you heard about “multiple M&IE markets” but don’t know what it means?
If you’re a truck driver, understanding per diem is essential—it helps you keep more of your hard-earned money. However, the IRS has specific rules about per diem eligibility, and one of the biggest requirements is that your route includes stops in different locations with different M&IE (Meals & Incidental Expenses) rates.
By the end of this article, you’ll understand what multiple M&IE markets are, why they matter for your trucking per diem eligibility, and how to check M&IE rates for different locations.
What Is Per Diem?
Per diem is a daily allowance that trucking companies pay drivers to cover meals and incidental expenses while they’re on the road. This payment simplifies expense reporting and offers tax benefits for both employers and drivers.
The IRS Definition of the Transportation Industry
According to the IRS, you’re considered part of the transportation industry if your job:
- Involves Moving Goods or People: You drive a truck, bus, ship, airplane, or train to transport items or passengers.
- Requires Regular Travel Away from Home: Your work takes you away from your home base frequently, and during a single trip, you stop in different areas that have varying federal rates for meals and incidental expenses (M&IE).
This means that to qualify for per diem, your trips should regularly take you to multiple locations with different M&IE rates.
What Are M&IE Rates?
M&IE stands for Meals & Incidental Expenses. It’s the daily amount the government allows for food and small expenses (like tips) while you’re away from home.
But here’s the key: M&IE rates are not the same everywhere. Some cities have higher costs, so the government sets different per diem rates based on location.
For example:
- New York City has a higher M&IE rate because food is expensive.
- Small towns usually have lower rates because meals cost less.
Since rates change by location, your trucking route must include stops in different areas with different M&IE rates to qualify for per diem.
How to Find M&IE Rates for Different Locations
To determine the M&IE rates for the areas you travel to, you can use the GSA’s per diem rates lookup tool. This tool allows you to search for rates by city, state, or ZIP code.
Why Is This Important for Per Diem Payments?
For a trucking company to pay per diem to its drivers, the IRS requires that the driver’s work involves:
- Regular Travel Away from Home: Consistently taking trips that require overnight stays.
- Stops in Multiple Locations with Different M&IE Rates: During a single trip, you stop in areas that have different government-assigned rates for meals and incidental expenses.
This ensures that the per diem payments are justified based on the varying costs encountered during travel.
Recent Updates to Per Diem Rates
As of October 1, 2024, the IRS has updated the per diem rates for the transportation industry:
- $80 per day for travel within the continental United States (CONUS).
- $86 per day for travel outside the continental United States (OCONUS).
These rates cover meals and incidental expenses. It’s important to note that these rates can change, so staying informed about the current rates is crucial. irs.gov
How Superior Trucking Payroll Service Can Help
Navigating per diem regulations can be complex. At Superior Trucking Payroll Service, we specialize in understanding the unique needs of the trucking industry. We can help you:
- Determine Eligibility: Assess whether your travel patterns meet the IRS requirements for per diem payments.
- Stay Compliant: Ensure your per diem payments align with the latest IRS guidelines.
- Simplify Payroll Processing: Integrate per diem calculations seamlessly into your payroll system.
If you have questions or need assistance with per diem policies, don’t hesitate to reach out to us. We’re here to make payroll processing straightforward and compliant for your trucking business.
For more detailed information, you can refer to the IRS Notice 2024-68 and the GSA’s per diem rates.
Understanding these regulations ensures that both employers and drivers benefit from the available allowances, leading to smoother operations and financial efficiency.
Written by Melisa Bush
With over 15 years of experience in the trucking industry, Melisa is well-versed in the complexities of trucking payroll and adept at navigating special circumstances. Before joining Superior Trucking Payroll Service, Melisa worked at a trucking company, where she managed driver miles and expenses for a fleet of 50 trucks. This hands-on experience gives her unique insight into the challenges our clients face when preparing their payroll data.