From January next year, an amendment to the Labor Code will enter into force, which changes the terms of meals not only for employees but also for companies. Extending the meal allowance with a financial contribution will bring more and new administrative complications to the accounting departments.
There are several complications for the employer for employees who choose a financial contribution. While meal vouchers are issued by employers as usual i.e. the number of working days in the following month, employees must receive the appropriate amount up front in the financial contribution. For employers, the usual pay period (usually the 15th of the month) There will be another payment term associated with the payment of the meal allowance. This can put a strain on finances and cash flow, especially for small businesses, especially during the pandemic. Accounting officials will have to keep the financial contribution paid well in advance so that employees can put it into their account before the start of the following month. If the employer does not adhere to these deadlines and pays the meal allowance only at the beginning of the following month, The entire meal allowance is taxed and charged to the employee! Thus, even this small amount (2.81 euros), which remained after the amendment of the Labor Code as a non-taxable amount for meals, the employee was subject to tax. At the same time, it does not have to be bad faith on the part of the employer: funds may be missing from the account or other meals may not be processed for other reasons.
Meal vouchers are easier to issue and return than money
Complications for accounting departments arise in case of financial contribution in other cases as well. Meal tickets will simply be returned if the employee does not start work at all, or if the expected number of work days is not worked due to a PN or OČR. Adjusting the financial contribution brings accounting departments more agenda and demands increased attention. The new meal schedule is more complicated for accounting departments, and therefore for employers, since the employee can choose meal vouchers or financial contribution at any time during the year, but his choice will be binding for at least one year (technical, not calendar). Another issue with the financial contribution is that while so far they have dealt mostly with meal allowances/mostly payroll, the financial contribution also requires the participation of someone who can make payments from the corporate account, which complicates the management of this form of meal provision.
Meal vouchers reward employees for you
For employers and their accounting departments, meal vouchers or electronic cards are thus a much simpler form of administration and accounting for providing meal allowances. It also brings another important feature, which is More rewards for employees from meal voucher issuers. The offer includes, for example, cash back for lunches in restaurants (which support Slovak gastronomy), and various discount systems that allow employees to earn savings on purchases in addition to meals. All this can be exciting benefits for employees from the coming year, which will be obtained only by users of meal tickets or stomach cards.
Source: Association of Modern Benefits, 2021
“Organizer. Pop culture aficionado. Avid zombie scholar. Travel expert. Freelance web guru.”