Hey!

Here's how to set up your per diem policy in Payhawk:

  1. First, go to the Settings app and navigate to the Per diem tab

  2. Next, you can toggle it on so that you enable your employees to submit Per diem expense requests

  3. You can proceed by creating a policy (Just give it a name, and define when is it valid from and till) Expenses that match those time intervals will reflect the rates that you define in the given policy. You will not be able to create the policy if there is already an existing one with overlapping dates.

  4. Great, now that you have the policy created, all that it's left is the rate definition which happens in Excel.

  5. You can download our template where you'll find the following columns (the template is based on the German official rates set as default values that you can change if necessary):

    • Destination - this will be the country/city where the employee is traveling to. If the employee travels to several locations in one day, we would take the last location visited for that day and use its rate. If the employee selects a city for which there is no rate, we will use the country rate. If they select a country for which there is no rate, we will use the default rate "Other" at the bottom of the list.

    • Destination code - Country/City code

    • Short stay - this rate will be used if the employee stayed in a city between 8 and 24 hours. If your company does not use a separate rate for this duration you can copy the values from the full-day rate column.

    • First/Last day - this rate will be applied for the first and last day of the employee's trip. If your company does not use a separate rate for this duration you can copy the values from the full-day rate column.

    • Full day - this rate will be applied for all stays (with a minimum of 24 hours).

    • Breakfast, Lunch, and Dinner

      Some companies/countries use deductions. When meals are offered at no cost, paid with a company card, or when meals are provided as part of the reimbursable travel or lodging, a percentage needs to be deducted from the allowance per calendar day. An example of this could be a free breakfast supplied by the hotel where the employee is staying or a complimentary dinner offered at a conference. The deductible percentages (from the full day rate) we've used in our template are:

      • Breakfast: 20%

      • Lunch: 40%

      • Dinner: 40%

    • Once you've made changes where necessary, you can save the file and import the rates in your newly created policy.

    • Once imported, all rates and deductions are visualized in Payhawk.

    • If needed, you can edit the policy name and its duration.

    • You can also download your existing rates in Excel, change them and make a new import. Don't worry if there are existing unpaid per diem expenses with the old rates. We will update them too!

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