Per Diem Laws in Wisconsin (2026): Your Complete Travel Reimbursement Guide

Most people think per diem is just about getting money for lunch. Wrong. It’s way more complex than that, especially in Wisconsin. The rules are different depending on whether you work for the government or a private company. Let’s break down exactly what you need to know.

What Is Per Diem?

Per diem means “per day” in Latin. Basically, it’s a daily allowance for travel expenses. Instead of keeping every single receipt from your business trip, you get a fixed amount each day. Pretty straightforward, right?

Per diem typically covers three things. Lodging is your hotel or motel room. Meals are breakfast, lunch, and dinner. Incidentals include tips for hotel staff, dry cleaning, and similar small expenses.

Here’s where it gets interesting. Wisconsin doesn’t actually have its own per diem laws. The state follows federal guidelines for government employees. Private employers can do whatever they want, within certain limits.

Federal Per Diem Rates for Wisconsin (2026)

The General Services Administration sets the official rates. These are mandatory for federal employees. They’re also the standard that most companies use.

For Fiscal Year 2026, the standard rate is $178 per day. That breaks down to $110 for lodging and $68 for meals and incidentals. These rates apply from October 1, 2025, through September 30, 2026.

But wait, some cities have higher rates. Milwaukee has different rates than the rest of the state. Madison also gets special treatment. The rates can even change by season in some locations.

Madison’s rate is seasonal. From October through April, it’s $110 per night for lodging. From May through September, it jumps to $138 per night. The meals and incidentals stay at $68 year-round.

Milwaukee gets a flat rate of $140 per night for lodging. The meals and incidentals portion remains $68. This applies to Milwaukee, Waukesha, and Racine counties.

Wondering if this applies to you? If you’re traveling anywhere else in Wisconsin, you get the standard rate. That includes popular spots like Wisconsin Dells. Yep, even tourist destinations usually fall under the standard rate.

How Federal Employees Get Reimbursed

Federal workers have strict rules to follow. You only get 75% of the meals and incidentals rate on your first and last travel days. So instead of $68, you get $51 for those days.

If your conference or meeting provides meals, you have to deduct them. The breakfast allowance is $16. Lunch is $19. Dinner is $28. Incidentals are $5.

You don’t need receipts for meals and incidentals. That’s the whole point of per diem. But you absolutely need receipts for lodging, no matter what. Hold on, this part is important.

You must document your travel. Write down where you went, when you went, and why you went. Without this documentation, your reimbursement becomes taxable income. Not good.

Wisconsin Private Employer Rules

Here’s where things get different. Wisconsin has no law requiring private employers to pay per diem. None. Zero. They don’t have to reimburse you at all.

Sound unfair? There’s a catch that protects you. Wisconsin has strong wage deduction laws. Your employer can’t make you pay for business expenses if it drops your pay below minimum wage.

Wisconsin’s minimum wage is $7.25 per hour. If your unreimbursed travel costs effectively reduce your hourly pay below that amount, your employer is breaking the law. This applies whether you track actual expenses or use per diem.

Let’s say you make $10 per hour and work 40 hours a week. That’s $400 for the week. If you spend $150 on business travel and don’t get reimbursed, your effective pay drops to $6.25 per hour. That’s illegal.

Many private companies choose to follow the federal GSA rates. It’s not required, but it’s considered fair and reasonable. Some companies create their own policies with different rates.

The IRS High-Low Method (Optional Alternative)

Companies can use a simpler system called the high-low method. Instead of tracking every city’s specific rate, they use just two rates. Easy peasy.

For 2026, the high-cost rate is $319 per day. That’s $233 for lodging and $86 for meals and incidentals. The low-cost rate is $225 per day. That breaks down to $151 for lodging and $74 for meals and incidentals.

Which cities count as high-cost? The IRS updates the list every year. You need to check the current list before your trip. Most of Wisconsin falls under the low-cost category.

This method saves paperwork. Your company picks one rate system and sticks with it all year. You still need to document your travel purpose and dates, though.

Important Wage Deduction Protections

Wisconsin Statute 103.455 is your friend. This law says employers can’t deduct money from your wages for lost property, damage, or faulty work. Not without your written permission.

Blanket authorizations don’t count. You can’t sign something at hiring that says “the company can deduct from my pay for any losses.” That’s void under Wisconsin law.

If something gets lost or damaged, your employer needs your written OK after it happens. They need this before they take money from your paycheck. The authorization must be specific to that incident.

This applies to unreimbursed travel expenses too. Your employer can’t just say “we don’t reimburse travel” and then dock your pay. If that drops you below minimum wage, they’re violating the law.

Penalties for violations are serious. An employee can recover twice the amount of any illegal deduction. Plus, you can file a complaint with the Wisconsin Department of Workforce Development.

Tax Rules for Per Diem Payments

Per diem isn’t taxable income if done correctly. You need to follow the IRS accountable plan rules. Three requirements make it work.

First, your expenses must have a business connection. Commuting to your regular workplace doesn’t count. You must be traveling away from your tax home.

Second, you must document everything within 60 days. Where you went, when you went, and why you went. Late documentation makes the payment taxable.

Third, you must return any excess payments within 120 days. Got a $500 advance but only spent $400? You need to give back that $100.

Stay within the federal rates and you’re golden. Exceed them and the excess becomes taxable wages. Your employer has to withhold taxes on the extra amount.

Honestly, this is the part most people mess up. Keep good records from the start. A simple spreadsheet with dates, locations, and purposes works fine.

Self-Employed and Business Owners

The rules change if you’re self-employed. You can’t use per diem for lodging at all. You must track actual hotel costs with receipts.

You can use per diem for meals and incidentals. But only 50% is tax deductible. That’s federal tax law, not a Wisconsin thing.

Most self-employed people find that actual expense tracking works just as well. You’re keeping receipts for lodging anyway. Might as well track the meals too.

Transportation workers get special rates. Truck drivers and similar occupations can use $80 per day for meals and incidentals within the continental US. That’s higher than the regular rate.

State Government Employee Travel

Wisconsin state employees follow their own guidelines. These are set by the Office of State Employment Relations. They generally align with federal rates but have some differences.

State employees must use the expense module in their payroll system. This ensures proper tracking and tax reporting. Contractors and volunteers who aren’t on payroll use a different system.

The state requires receipts for lodging regardless of amount. Meals and incidentals under $25 don’t need receipts. Anything over $25 requires documentation.

Employees can’t claim meals and incidentals without taking an unpaid meal break. You need at least a 30-minute break. Working through lunch means no meal reimbursement unless your supervisor approves it.

University of Wisconsin System employees have additional rules. They get 75% of the meal rate on first and last travel days, just like federal workers. Conference meals must be deducted from their reimbursement.

Common Mistakes to Avoid

Not documenting your travel is the biggest error. Keep a simple log with dates, destinations, and business purposes. Takes two minutes after each trip.

Mixing personal and business travel without proper allocation causes problems. If you extend a business trip for vacation, you can only claim the business portion.

Forgetting to return excess advances within 120 days makes the whole thing taxable. Set a reminder in your phone when you get the advance.

Using the wrong rates for your location is surprisingly common. Double-check whether your destination has a special rate. The GSA website has a lookup tool.

Not keeping lodging receipts will bite you. Even with per diem, lodging always requires a receipt. Always.

How to Track Per Diem Properly

Create a travel log template. Include columns for date, destination, business purpose, departure time, and return time. Fill it out immediately after your trip.

Take photos of receipts with your phone. Many expense apps do this automatically. It’s way easier than keeping paper receipts.

Know your company’s policy inside and out. When do you need to submit documentation? How do you handle partial days? Who approves your expenses?

Calculate your per diem before you travel. Knowing your allowance helps you budget. It also prevents overspending and having to pay back money.

When Companies Change Their Policies

Employers can change their reimbursement policies. But they need to tell you about it in advance. Surprise policy changes after your trip aren’t fair.

Most companies align policy changes with the federal fiscal year. That means October 1st is a common effective date for new rates.

If your company stops reimbursing travel expenses, watch your pay carefully. Make sure your effective hourly rate doesn’t drop below minimum wage.

You can negotiate reimbursement as part of your employment terms. If your job requires frequent travel, get the reimbursement policy in writing.

Special Situations

Day trips without overnight stays have different rules. You generally don’t get lodging per diem. Meals might be limited to a lower rate or not reimbursed at all.

Extended assignments lasting over a year lose per diem eligibility. The IRS considers you relocated at that point. You can’t claim travel expenses for your new regular workplace.

Military and government facility travel has special rules. If a facility spans multiple jurisdictions, you get the higher of the applicable rates.

Moving expenses used to be reimbursable but are now taxable. Wisconsin follows federal tax law on this. Only active military members can deduct moving costs.

Where to Get Help

The Wisconsin Department of Workforce Development handles wage complaints. Visit dwd.wisconsin.gov or call their office if your employer isn’t following wage laws.

The IRS website has the most current per diem rates. Check www.gsa.gov/travel for the official GSA rates by location.

Your company’s HR department should have written policies. Ask for a copy before your first business trip. Read it carefully.

Tax professionals can help with complex situations. If you’re self-employed or have unusual travel patterns, getting advice can save you money.

Frequently Asked Questions

Does my employer have to pay me per diem in Wisconsin?

No. Wisconsin has no law requiring private employers to offer per diem or reimburse travel expenses. However, if unreimbursed expenses drop your effective pay below minimum wage, that’s illegal under wage protection laws.

Can I keep the leftover per diem if I spend less?

It depends on your employer’s policy. Federal employees generally keep the difference on meals and incidentals. Private employers can require you to return unused per diem or only reimburse actual expenses.

Are per diem payments taxable?

Not if your employer follows IRS accountable plan rules. You must document your travel within 60 days, stay within federal rates, and return excess payments within 120 days. Otherwise, it becomes taxable income.

What happens if I don’t get reimbursed for business travel?

You may be able to deduct it on your taxes if you’re self-employed. Employees generally can’t deduct unreimbursed business expenses anymore under current tax law. If it drops your pay below minimum wage, file a wage complaint.

Do per diem rates include taxes on hotel rooms?

No. The lodging per diem is for the room rate only. You should get separate reimbursement for hotel taxes or use a tax exemption certificate if traveling on government business.

Final Thoughts

Per diem in Wisconsin isn’t complicated once you understand the basics. Federal employees follow GSA rates. State employees have their own system. Private employers make their own rules but can’t violate wage laws.

The key is documentation. Keep records of where you went, when you went, and why you went. Save receipts for lodging. Submit everything on time.

If you’re employed by a private company, know your rights. Your employer doesn’t have to offer per diem, but they can’t make you work for less than minimum wage after unreimbursed expenses.

Now you know the basics. Stay informed, track your expenses, and when in doubt, check with HR or a tax professional.

References

1. U.S. General Services Administration – Per Diem Rates (2026) – https://www.gsa.gov/travel/plan-book/per-diem-rates
2. Wisconsin Department of Workforce Development – Wage Payment and Collection Law – https://dwd.wisconsin.gov/er/laborstandards/wages.htm
3. IRS Notice 2025-54 – Special Per Diem Rates for 2025-2026 – https://www.irs.gov/pub/irs-drop/n-25-54.pdf
4. Wisconsin Statute Section 103.455 – Deductions for Faulty Workmanship, Loss, Theft or Damage – https://docs.legis.wisconsin.gov/statutes/statutes/103/455
5. University of Wisconsin System – Travel Policy and Per Diem Guidelines – https://www.wisconsin.edu/travel/