A daily allowance for travel expenses (lodging, meals) — usually NOT taxable if within GSA rates.
Common paystub code: PER DIEM / PERDM
Per diem ("per day" in Latin) is a daily allowance given to employees traveling for work. If the per diem rate is at or below the GSA (General Services Administration) rate for that location, it's generally not taxable and won't appear as income on your paystub. If it exceeds the GSA rate, the excess is taxable. For 2026, the standard meals rate is $69/day for most cities (higher in major metros). Truck drivers have special per diem rules under DOT regulations.
On a typical US paystub, per diem information appears in one of three sections — the earnings summary, the deductions list, or the year-to-date (YTD) totals — depending on the type of item. Understanding where to find it helps you verify accuracy, catch payroll errors, and prepare for tax season or loan applications.
Whether you receive a digital paystub through your employer's payroll system (such as ADP, Gusto, QuickBooks Payroll, or Paychex) or a traditional paper stub, the information for per diem is required by federal labor law to be itemized and accurate. The Fair Labor Standards Act (FLSA) and state-specific wage transparency laws mandate that employees can review and verify each line of their paystub.
Accurate knowledge of per diem is essential for several real-world scenarios common to US workers: when applying for an apartment rental (landlords typically require recent paystubs as proof of income), when applying for a car loan or mortgage (lenders verify gross and net pay across multiple paystubs), when filing your annual tax return (IRS Form 1040 reconciles to your year-to-date W-2 or 1099 totals), and when changing jobs (you may need to provide last paystubs to your new employer for benefits eligibility verification).
If you spot an error related to per diem on your paystub, US labor law requires your employer to investigate and correct the issue. The American Payroll Association reports that nearly 75% of US workers will experience at least one payroll error during their career, which is why understanding each line item — including per diem — is one of the most valuable financial literacy skills you can develop.