Question about eating meals at work

[crazy canuck]

If I would get a food voucher (or company car/telephone/etc. for private use) that can be construed as a financial advantage, I have to pay income tax and social security on that.

What I was told is that for companies it was more convenient for them to give food voucheurs to employees instead of an equivalent salary raise because of payroll taxes, but I don't know exactly what kind of taxes they'd have to pay for the voucheurs.

In the US, that would be considered a "perk" and not included in the regular employee taxes. The employee would be expected to claim it as part of their income when they file their income taxes, though, and would be taxed on it.

At least, that's how I understood it when I did the taxes for the Coffee Lady.

Payment for expenses is most definitely not taxable in Canada.  Back when I had to do circuit court all the time it was a nice little perk because I'd get, whatever, $10-$12 for lunch but brown-bag it so I could just pocket that money.

Isnt taking money to pay for an expense you did not incur a bit dodgy counsel?

[DGuller]

Meal allowance?

Since all employees have to eat (at a restaurant), companies are forced by law to pay everybody a meal allowance ['subsídio de refeição', in portuguese] to cover the cost, or at least part of the cost, of a meal at a restaurant.

It is an extra added to the wage and not considered taxable income.

This is the law:

http://www.dgaep.gov.pt/stap/infoPage.cfm?objid=56233dbb-79d5-4613-bfcc-90d8a58b6ea4&KeepThis=true&TB_iframe=true&height=580&width=520

translate with google, or something.

Called it.

You're the Nate Silver of Martim's trolling.

[Barrister]

If I would get a food voucher (or company car/telephone/etc. for private use) that can be construed as a financial advantage, I have to pay income tax and social security on that.

What I was told is that for companies it was more convenient for them to give food voucheurs to employees instead of an equivalent salary raise because of payroll taxes, but I don't know exactly what kind of taxes they'd have to pay for the voucheurs.

In the US, that would be considered a "perk" and not included in the regular employee taxes. The employee would be expected to claim it as part of their income when they file their income taxes, though, and would be taxed on it.

At least, that's how I understood it when I did the taxes for the Coffee Lady.

Payment for expenses is most definitely not taxable in Canada.  Back when I had to do circuit court all the time it was a nice little perk because I'd get, whatever, $10-$12 for lunch but brown-bag it so I could just pocket that money.

Isnt taking money to pay for an expense you did not incur a bit dodgy counsel?

You tell me.  I've never heard of being taxed on a per diem meal allowance.

[Grey Fox]

I don't get the sandwich hate.  I love a good sandwich.   

I just cant stand prepared sandwhiches. It has to be fresh. So I bring everything separately.

[DGuller]

I don't get the sandwich hate.  I love a good sandwich.   

It's hard to keep it in peak condition until lunch time.  It's easy for it to get either too crusty, or too soggy.

[Syt]

The bakery in the subway station sells a great sandwich, about a footlong: prosciutto, Italian salami, olives, dried pepper, parmegian cheese, thick tomato sauce in soft Italian bread.

[garbon]

Does anyone really need that much?

[Josephus]

I don't get the sandwich hate.  I love a good sandwich.   

I prefer a hot meal.

Which is why I combine the two. Soup and sandwich.

[11B4V]

I have no set time or length.

[crazy canuck]

You tell me.  I've never heard of being taxed on a per diem meal allowance.

It all depends on how it is structured.

If you actually purchase food while on business and your employer has a policy of reimbursing you for that sort of a thing then it is generally considered to be non taxable as a straight reimbursement for an expense incurred.  Normally the tax man requires proof of actual expense though otherwise its becomes an obvious tax dodge.

The key there is that expense is actually incurred.  Per Diems are a short cut to reduce the amount of paperwork required to keep track of actual expenses. That is why they can be abused in exactly the way you did it.

[DGuller]

You tell me.  I've never heard of being taxed on a per diem meal allowance.

It all depends on how it is structured.

If you actually purchase food while on business and your employer has a policy of reimbursing you for that sort of a thing then it is generally considered to be non taxable as a straight reimbursement for an expense incurred.  Normally the tax man requires proof of actual expense though otherwise its becomes an obvious tax dodge.

The key there is that expense is actually incurred.  Per Diems are a short cut to reduce the amount of paperwork required to keep track of actual expenses. That is why they can be abused in exactly the way you did it.

Lock him up, CC. 

[Barrister]

You tell me.  I've never heard of being taxed on a per diem meal allowance.

It all depends on how it is structured.

If you actually purchase food while on business and your employer has a policy of reimbursing you for that sort of a thing then it is generally considered to be non taxable as a straight reimbursement for an expense incurred.  Normally the tax man requires proof of actual expense though otherwise its becomes an obvious tax dodge.

The key there is that expense is actually incurred.  Per Diems are a short cut to reduce the amount of paperwork required to keep track of actual expenses. That is why they can be abused in exactly the way you did it.

How is that abuse?

I would be required to travel to various communities to conduct court.  Sometimes I would purchase a lunch, but most days I never actually had any time to do that, so I would just bring a lunch.  I still had the expense of buying that lunch - I just bought it earlier.

As long as the amount of the per diem is reasonable (and trust me, being government it was adequate but certainly not generous) it's not a tax dodge.

[Richard Hakluyt]

I normally take about four hours off for lunch. I like a cooked meal with a salad, then I have a nap.

[Crazy_Ivan80]

Quit trying to act as though all others are beneath you because they think - and act - differently. It's annoying and makes you look ignorant and provincial.

Actually, I was trying to see it what I'd thought was true, and if so to wonder why do you let your employers do that to you. Can you do the math on how much money you've been forced to spend to do your work?

think about it like this: can you imagine how much these people invested in the economy while you've been a drain on it?

[alfred russel]

I'm actually surprised... the general idea is that, since you have to work through the day, the company is forcing you to eat away from home. So they have to compensate the workers for it.

I've always preferred to be compensated in cash rather than food coupons.

Martim, this may blow your mind, but it isn't uncommon in the US for workers to pay to park at their workplace (usually if they are at a large building in a metro area).