Schneider per diem

It can technically be both, but in the modern era, it is mostly a tax deduction. Some companies used to give you money, cash in hand. Not so much in this current corporate climate, though.

 

It now and always has been a deduction. The party that incurs the expense takes the deduction.

You pay the expense you take the deduction. Company reimburses you for the expense they take the deduction.

Now how a company may or may not pay for expenses is part of the compensation package. Different companies, different industries have different compensation packages.

 

There's a difference between a company paying per diem and the meal/lodging deduction.

Other industries will include pay for being on the road. Thats an expense the company can deduct as a normal expense. If the company didnt pay that money, the employee has no deduction they can take.

Truck companies have abused the meal and lodging deduction we get in order to reduce their own expenses.