How per diem and travel stipends work

Summary: If your assignment includes a travel stipend or per diem, you do not submit it as an expense — it is set up on your assignment and paid automatically each pay period along with your wages. This article explains how it is calculated, when you get it, and why it may or may not show up as taxable.

Some travel assignments include a stipend (sometimes called per diem) to help cover the cost of meals and lodging while you are temporarily working away from home. Unlike a receipt-based reimbursement, a stipend is a set allowance. Here is how it works from your side.

You don't submit a stipend — it's automatic

A travel stipend is configured on your assignment by your Staffing Partner or the people who set up your placement, not entered by you as an expense. Once it is set, the stipend is calculated automatically and paid to you each pay period. You do not need to file anything or upload receipts to receive it.

A stipend can be set as either:

• A daily amount — an amount for each day, or

• An hourly amount — an amount for each hour worked.

Depending on how your assignment is configured, the stipend may be paid only for the days you actually work, or for all days in the pay period. Your agency can tell you which applies to your assignment.

How the amount is decided

Stipend amounts are often based on federal (GSA) per diem rates, which set standard daily meals and lodging allowances by location and time of year. You can look up the published rate for a location at GSA Per Diem Rates.

Your assignment's stipend does not have to match the GSA figure exactly — your Staffing Partner or client decides the actual amount — but GSA rates are a common reference point and are sometimes used as a cap.

When you receive it

Your stipend is paid on your normal pay cycle, together with your wages, for each period it applies to. If you want to see when a specific pay period is deposited, see When and how often will I get paid?

Is it taxed?

A travel stipend is usually paid tax-free, which is why it may not appear as taxable wages on your W-2. Tax-free treatment depends on if you are genuinely traveling away from a tax home on a temporary assignment (generally one expected to last a year or less). If those conditions are not met, the same money must be treated as taxable income instead.

This is a general summary, not tax advice. For the details, see Are stipends included on the W-2? and the IRS guidance on travel expenses at IRS Publication 463. For your own situation, consider speaking with a tax professional.

Per diem vs. reimbursement — what's the difference?

• Per diem / stipend — a set allowance, paid automatically, no receipts needed. You do not submit it.

• Reimbursement — you paid for something specific, kept the receipt, and submit it to be paid back. See How to submit an expense or mileage reimbursement.

If you think your stipend amount is wrong or missing from your pay, contact your Staffing Partner or the Ascen Support Team at support@ascen.com.

Related articles

• How to submit an expense or mileage reimbursement

• When you'll be reimbursed for expenses

• Are stipends included on the W-2?

• Understanding your pay stub

Frequently asked questions

Do I need to submit receipts for my per diem?
No. A stipend is a set allowance that is paid automatically. Receipts are only needed for reimbursements, where you are paid back for a specific expense you incurred.

Why isn't my stipend on my W-2?
Travel stipends are generally paid tax-free when you meet the IRS conditions for traveling away from a tax home on a temporary assignment, so they may not appear as taxable wages. See Are stipends included on the W-2?.

My stipend looks wrong or is missing. What do I do?
Stipend amounts are set on your assignment, so ask your staffing partner to review and correct the amount. If the amount is right but it was not paid, or the tax treatment looks wrong, email Ascen at support@ascen.com.