In the current tough economy, some firms are scaling back on employee business travel. But for many others, it remains a necessity.

The IRS recently released the 2009 reimbursement limits for companies that reimburse on a per diem basis.

The new rates are effective as of Oct. 1, 2008.

Increase in standard rate

The standard non-mileage per diem limits for 2009 have been bumped up to $109. The breakdown:

• $70 a day for lodging, and
• $39 for meals and incidentals.

Keep in mind that these rate apply to expenses incurred at “standard” locations, but the feds also have a list of over 400 non-standard locations. The reimbursement limits are higher for the non-standard ones.

Is per diem the way to go?

Per diem reimbursements are just one of many possible methods available for reimbursing employees’ business expenses. But if you’ve never reimbursed this way, it may be worth considering.

According to CFO & Controller Alert, this method offers more opportunities for cost control than many other common approaches.