Newly announced by the General Services Administration (GSA), next year’s reimbursement rates for lodging, meals, and “incidental purchases.”
The GSA determines and publicly announces the standard reimbursement rates for gas, lodging meals, and incidental purchases. When government employees use a personally-owned vehicle for federal business, and no government option was available, then they are due a fuel reimbursement. For the current year, this rate is 58.5 cents per mile, up from $0.56/mile the previous year.
Per diem rates are not released in January at the beginning of the calendar year like the gas rates are, though. Lodging and meal rates are set for the fiscal year, which starts in October, and are released by the GSA towards the end of August. Just this week, it was announced that the per diem rate for FY 2023 will be increased by $2 to $157 allowed per day. Reimbursements for lodging will be capped at $98 each day, up from $96 the prior year, while the cap for meals and incidental purchases will remain the same at $59/day.
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Hotel costs incurred while conducting official business for the federal government will be reimbursed at this standard lodging rate of $98 per day starting in October. Of the roughly 2600 counties in the United States, 319 of these had “non-standard” rates for FY 2022. In the GSA’s recent announcement, it was also revealed that three of these counties will revert to the standard rate for FY 2023, reducing the amount of “non-standard” counties to 316. The standard rate will apply to Cromwell, CT, El Paso, TX, and Rock Springs, WY at the start of October. The same goes for rates that apply to meals and incidental purchases that occurred while on the job. “Incidental purchases” are tips paid to waiters, hotel staff, and similar workers.
Until Next Time,
**Written by Benjamin Derge, Financial Planner, ChFEBC℠ The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.