If you have employees who travel for business — whether to attend trade shows, visit vendors, or handle deliveries — you need to understand how the IRS treats per diem reimbursements.
The IRS sets standard per diem rates that cover lodging, meals, and incidentals for travel away from home. When you reimburse employees at or below these rates, the reimbursements are generally not taxable to the employee and are deductible for your business.
For restaurant owners, this is particularly relevant when attending events like Pizza Expo or National Restaurant Association Show. Travel costs add up quickly — and handling them correctly from a tax perspective can save you thousands.
Credit card processing fees are another area where restaurant owners leave money on the table. These fees — typically 1.5% to 3.5% per transaction — are fully deductible as a business expense. Many owners overlook them when calculating true profitability.
The key is to separate cash and card revenue in your recordkeeping. This not only gives you a clearer picture of your processing costs but also ensures you can document the deduction clearly if the IRS ever asks.
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