Are meals that are provided for overtime work which exceeds beyond the normal work schedule excludable from employee’s wages? Answer: Generally yes. If the following three conditions are met, occasional meal money may be excludable from income as a de minimis fringe benefit: Occasional Meal is reasonable in value, and not provided regularly or – frequently, and Provided for Overtime Work Overtime work necessitates an extension of – the employee’s normal work schedule, and Provided to enable the employee to work 3) Enables Overtime Work – overtime. Meals provided on the employer’s premises that are consumed during the overtime period, or meal money expended for meals consumed during that period, satisfy this condition. Regularly provided meal money does not qualify for the exclusion for de minimis fringes provided by an employer. Meal reimbursements as part of a company policy or union contract may not qualify as an excludable de minimis benefit because the benefit is required and may not be considered occasional. In this case, the employer would have the opportunity to set up the administrative procedures for reporting the benefit. In no event will meal money calculated on basis of number of hours worked (e.g. $5.00 per hour for each hour worked over 8 hours) be excludable as a de minimis fringe benefit. See Publication 15-B, Employer’s Tax Guide to Fringe Benefits; Reg. 1.132-6(d)(2) # # # Helpful information can be found on the FSLG website: Fringe Benefits – Employer’s Tax Guide to Fringe Benefits (revised annually) – Reviewed on 01/18/2017 by: Allison Jones, FSLG Tax Specialist Federal, State and Local Government Ph: 316-651-2193 Kansas State Department of Education | Landon State Office Building| 900 SW Jackson Street, Suite 356 | Topeka KS 66612 | School Finance | (785) 296-3872 | Craig Neuenswander, Director | |
Are meals that are provided for overtime work which exceeds beyond the normal work schedule excludable from employee’s wages? Answer: Generally yes. If the following three conditions are met, occasional meal money may be excludable from income as a de minimis fringe benefit: Occasional – Meal is reasonable in value, and not provided regularly or frequently, and Provided for Overtime Work – Overtime work necessitates an extension of the employee’s normal work schedule, and 3) Enables Overtime Work – Provided to enable the employee to work overtime. Meals provided on the employer’s premises that are consumed during the overtime period, or meal money expended for meals consumed during that period, satisfy this condition. Regularly provided meal money does not qualify for the exclusion for de minimis fringes provided by an employer. Meal reimbursements as part of a company policy or union contract may not qualify as an excludable de minimis benefit because the benefit is required and may not be considered occasional. In this case, the employer would have the opportunity to set up the administrative procedures for reporting the benefit. In no event will meal money calculated on basis of number of hours worked (e.g. $5.00 per hour for each hour worked over 8 hours) be excludable as a de minimis fringe benefit. See Publication 15-B, Employer’s Tax Guide to Fringe Benefits; Reg. 1.132-6(d)(2) # # # Helpful information can be found on the FSLG website: – Fringe Benefits – Employer’s Tax Guide to Fringe Benefits (revised annually) Reviewed on 01/18/2017 by: Allison Jones, FSLG Tax Specialist Federal, State and Local Government Ph: 316-651-2193 Kansas State Department of Education | Landon State Office Building| 900 SW Jackson Street, Suite 356 | Topeka KS 66612 | School Finance | (785) 296-3872 | Craig Neuenswander, Director | |