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Per Diem Reporting on W2

nje1953 ✭✭
edited October 2010 in General Payroll Topics

Our company has just now begun to pay taxable and non-taxable per diem and personal mileage through payroll, and I have a couple of questions on it:

--I want to reconfirm that if I am paying personal mileage and per diem per the IRS rates, the payment itself is non-taxable and there's no reporting requirement of any kind within Box 14 on the W2;

--If I pay the employee a higher mileage or per diem reimbursement rate, the difference between the IRS rate and what was actually paid is taxable and should be included within Box 14 on the W2. So only the taxable amount included in Box 1, 3 and 5 is included in Box 14.



  • David,

    Thanks for the speedy response.

    Regarding the mileage.....I am clear that the non-taxable portion in the example you gave would be reported in Box 14, L on the W2. But what about the taxable portion? Let's just say that we decide to reimburse an employee above the rate for those business miles (@ 1.00). Would the difference also be required to be included in Box 14? (I realize that Box 14 is optional). I know that we'd need to report it in Boxes 1, 3 and 5.