When my employees are working out of town for three days do I have to pay for their meals?
I pay for the motel and was paying them $20.00 a day for meals but what I understand is I shouldn't have to pay for their meals. Breakfast, Lunch and Dinner.
Are your employees exempt or non-exempt employees? That is, are your employees working on an hourly basis or are they on salary? If they are non-exempt employees and you are paying them on an hourly basis, then they're still entitled to a 30 minute unpaid duty free lunch for every 5 hours worked. You should have them record their hours to ensure that they are being compensated for all hours worked, including any overtime, and that they are receiving their meal breaks and rest periods.
If the employees are exempt, the employer has to reimburse all expenses associated with the travel, including travel costs, reimbursement of mileage (for driving), and food. With regards to food, an employer can either reimburse the actual cost associated with each meal OR the employer can set a per diem cap for each meal. So, if your employee is exempt and you put a cap of $20 per day for meals, then you are only entitled to pay that much. Please note that you are also required to pay per mile driven by the employee while traveling. The current IRS rate per mile is 53.5 cents per mile.