If a per diem is for reimbursed expenses, what should the reporting type be for the earnings code set up?  It appears the only option is to mark it as PR-12 Reimbursed Expenses, but as long as the per diem is within federal guidelines, I don’t believe anything should be reported on the W-2 but you can’t leave the “Reporting Type” blank.  If it places the full amount paid in Box 12 under Code L, this would be wrong, but it shouldn’t be included in Normal wages either.  If I understand the IRS guidelines correctly, if the per diem is non-taxable the only amount that should be reported in Box 12 would be the difference in the per diem paid and the federal per diem rate if the amount paid is higher than the federal rate.  I’m no where close to a payroll tax expert, but there has to be a way to pay per diem through payroll without it impacting the employee’s W-2.