You can configure the settings for the per diem expense type in Payhawk according to the requirements of your company.
Enabling and disabling per diems
To enable (or disable) per diem expense types for your company:
Log in to the Payhawk web portal.
Go to Settings > Expense types.
Select Per Diem.
To allow employees at your company to create per diem expenses, switch on the toggle button. For this example, the per diem expenses will be enabled.
Alternatively, to disable per diems for your company, switch off the toggle button.
In the dialog that opens, click on Enable to confirm your settings.
Creating per diem policies
You can create a per diem policy for a specific duration based on the needs of your company.
To create a per diem policy:
Go to Settings > Expense types > Per Diem.
In the Policies tab, click on + New policy.
In the dialog that opens, enter the name and duration of the new policy.
As a result, expenses that match those time intervals will reflect the rates that you define in the given policy.
Note that you will not be able to create the per diem policy if there is already an existing one with overlapping dates.
Click on Save changes to create the per diem policy.
On the next screen, download the template Excel file with the pre-defined per diem rates by clicking on the our template link.
For more information on the default calculations included in the template file, see the section on Payhawk template per diem calculations.
Open the Excel file locally and edit the information based on your specific requirements. Save the file.
Back in Payhawk, click on Import rates.
In the next dialog, attach your locally updated Excel file. Click on Save changes.
As a result, the rates you've just uploaded will be distributed under the newly created per diem policy.
Payhawk template for per diem calculations
The Payhawk template Excel file with per diem rates is based on the German official rates as of 2022 set as default values and contains the following columns:
Destination. This is the country or city where the employee is traveling to.
If the employee travels to several locations in one day, Payhawk takes the last location visited for that day and uses its rate.
If the employee selects a city for which there is no rate, Payhawk uses the country rate.
If the employee selects a country for which there is no rate, Payhawk uses the default Other rate at the bottom of the list.
Destination code. This is the country or city code.
Half day. This rate is applied if the employee stays 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.
If your trip is between 8 and 24 hours but spans over two calendar days, then the First/Last day rates will be applied. For example, if you arrive at your destination today in the late afternoon and leave tomorrow at noon, today will be treated as the first day of your trip and tomorrow will be treated as the last day of your trip. Therefore, the First/Last day rates will apply to each day.
First/Last day. This rate is 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 is applied for all stays of a minimum of 24 hours.
When the business trip spans over two or more calendar days, the First/Last day and Full day rates will be applied as follows:
A two-day trip will require two First/Last day rates.
A three-day trip will require two First/Last day rates and one Full day rate.
Breakfast. Lunch. Dinner.
Some companies and countries use deductions. When meals are offered at no cost, paid with a corporate card, or when meals are provided as part of reimbursable travel or lodging, a percentage needs to be deducted from the allowance per calendar day - for example, 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 used in the template are breakfast - 20%, lunch - 40%, and dinner - 40%.
Editing and deleting per diem policies
To edit an existing per diem policy:
Go to Settings > Expense types > Per Diem.
Go to the desired per diem policy and click on the three dots menu. Select the Edit policy option.
In the dialog that opens, update the information and click on Save changes.
To delete an existing per diem policy:
Go to the desired per diem policy and click on the three dots menu. Select the Delete option.
In the dialog that opens, check the confirmation checkbox and click on Delete policy.
When you try to modify the effective period of a per diem policy or to delete a per diem policy while you still have outstanding expenses to which it applies, Payhawk will display a warning and will not let you proceed until these expenses are settled.
Updating existing per diem rates
To update your existing per diem rates applied for a per diem policy, you can download them in Excel, update them, and make a new import.
Go to the desired per diem policy and click on the three dots menu. Select the Download rates as .xlsx option.
As a result, the Excel file with your current per diem rates for the policy will be stored locally.
Update the details and save the file.
Back in Payhawk, click on the three dots menu. Select the Import rates option.
In the dialog that opens, upload your local file and click on Save changes.
Note that if there are existing unpaid per diem expenses with the old rates, Payhawk will automatically update them.
Alternatively, you can edit, delete, and download the existing per diem rates when you select the Manage option of the policy, click on the three dots menu, and, then, select the option you need.
Useful resources