Enabling taxable rates for per diems

If your company wants to reimburse its employees more than the tax-free rates set by the government, you must enable taxable rates for the per diem and specify taxable amounts for the per diem rates.

Enable taxable rates for the per diem

To enable taxable rates for a per diem:

1. In Business Central, search () for and select Expense Management Setup.
2. Under Per Diem, toggle Enable Taxable Rates so it is on.

Specify taxable amounts for per diem rates

For taxable rates to work, you must also specify the taxable amounts for the per diem rates, and here's how you do this:

1. Search () for and select Per Diem Groups.
2. In the Code column of the table, select the rate that you want to use for specifying taxable amounts.
3. Under Accommodation, specify a taxable amount in the Taxable Accommodation Allowance field.
4. Under Meals, specify a taxable amount in the Taxable Meal Allowance field.

If you cannot see the Taxable Accommodation Allowance and Taxable Meal Allowance fields, then you have to add them first.

To the add two fields:

1. Click Settings () > Design > + Field to open the Add Field to Page pane.
2. Select the relevant line section, then drag the desired field from the pane to the table in the selected line section.
3. Click Stop Designing.
4. Close the Finish Up Design pane.