The table below provides an outline of what you can and cant package as meal entertainment: The AccessPay Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Salary Packaging | RemServ Taxi travel to a club/restaurant etc. Salary Sacrifice Meal Entertainment - Maxxia travel to city and overnight stay to see a show and have a special dinner. Under a salary sacrifice arrangement, you should pay less tax than you would have without an arrangement. In these circumstances the annotation needs to identify the particular meal entertainment event connected with the travel and/or accommodation expenses charged to the MEC. Merchant blocking may mean that your Meal Entertainment Card is not accepted at some venues, if this happens, simply keep your receipt and make a claim via the. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and, seek appropriate legal, financial or other professional advice based upon your own particular circumstances. There should be an agreement between you and your employer. Fees and Charges (deducted from the Value on the Card), Annual Fee per benefit, charged monthly*, Disputed transaction fee (per transaction). Salary packaged Meal Entertainment and Entertainment Facility Leasing (MEVH) benefits are available to eligible ACT Government employees who qualify for the Fringe Benefits Tax (FBT) exemption under 57A of the FBTAA where; "the duties of employment of the employee are exclusively performed in, or in connection with a public hospital; or An employee can of course pay for such expenses with their credit card, if they have salary packaged a credit card utilising the $17,000 FBT free cap. Level 21/360 Use your card to purchase meals at bistros, cafes, hotels, and restaurants. Update Relating to Meal Entertainment and COVID-19 Please Click to Read. Salary+car (withemployee contributions), Income after tax and salary sacrifice amount, Reportable fringe benefits amount for employee's income statement or payment summary, (car fringe benefit taxable value of $7,0001.8868). What is the Meal and Entertainment Card and how can this benefit be We actively promote the employment of Aboriginal and Torres Straight Islanders, people with disability, those identifying as LGBTIQ+, and people from diverse cultural backgrounds so we can connect with our customers and the communities we serve. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. periodical payments or direct debits cannot be set up on the card. Let's tackle the tax-free thing first up. There is a limit of $2,650 each FBT year for this benefit. having the benefits reported on your income statement in myGov or payment summary. Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Australian Taxation Office for the Commonwealth of Australia. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. This includes meals ordered through delivery platforms such as Deliveroo, Menulog and Uber Eats. GST) per employee (see here) Meal entertainment provided by PBIs, HPCs, public hospitals, non-profit hospitals and public ambulance services to employees is exempt from FBT. Please consider if this product is right for you. Some of the information on this website applies to a specific financial year. Not-for-profit salary packaging If you are a not-for-profit employer, you may provide salary-packaged meal entertainment to your employees to take advantage of an exempt or rebatable cap. Employees should also note that the following transactions are not permitted with the MEC: The following outlines the audit procedure for MEC's: NSW Health randomly selects 20 employees each quarter and will request each employee selected to submit to NSW Health for audit, their last months card statement provided by Westpac. What an employee cant pay for with the MEC. Under an effective salary sacrifice arrangement: the employee pays income tax on the reduced salary or wages What is Salary Packaging and How Does it Work? - Eziway Smartsalary Meal and Entertainment Card Sign up for a Smartsalary Card to make packaging your meal entertainment expenses easier! the taxable value of the car fringe benefit will be $7,000(which is the cost of the car multiplied by the statutory rate, in this case$35,0000.20) and, $17,353if no employee contributions are made. by an associate of your business or organisation, your associate must tell you the value of the benefits by 21April. The cards fully compatible with Apple Pay and Android Pay. We don't provide advice on entering or rejecting a salary sacrifice arrangement. for birthday party on such and such date). By Ben Markovic 17 September 2021. Sam earns $65,000a year and is considering entering into an effective salary sacrifice arrangement. Meal Entertainment is a reportable fringe benefit with a $5,000 grossed up cap, and will be included on your income statement. Salary Packaging Meal Entertainment | Smartsalary Can a not-for-profit set up their own meal entertainment salary package These are also known as salary packaging or remuneration packaging. Eligible expenses are 'packaged' and paid to you as tax-free salary, reducing your tax bill and potentially increasing your take home pay by thousands each year. An employee who commenced 1 January 2000 may claim from 1 July 2002. For more information about the card please read the Product Disclosure Statement which is available here: maxxia.com.au/maxxia-wallet/pds. Salary sacrifice arrangements and not-for-profits DOCX Salary Packaging - Meal Entertainment Guidelines Travel/accommodation costs for local or overseas holidays for recreation purposes. During this unprecedented time, the ATO has provided an update relating to meal entertainment expenses. The card is aVISAdebit card and is therefore widely accepted in-store and online. a maximum of 12 functions per FBT year (April 1 March 31) can be claimed, tax invoices/receipts for food and/or drink cannot include any other grocery items e.g. You may be asked to provide your statement with appropriate explanation of any items that arent immediately identifiable as meal entertainment e.g. Hi Elli, I found this on the Smart Salary website: Home Delivery and Takeaway meal purchases during 2020-21 . Read the. Meal entertainment allows staff to pay less tax by claiming meals and drinks consumed in a restaurant/caf or provided at a social gathering. Lucy is salary packaging the $2,650 meal entertainment benefit . Meal entertainment is a reportable fringe benefit with a $5,000 'grossed up' cap, and will be included on your Income Statement. tax invoices/receipts must identify the restaurant/caf/function centre/caterer. Expenses paid with direct debits from your pay are not salary sacrificed. Attending a ball, gala event or charity dinner. Salary Packaging | EML Payments Meal entertainment - HealthShare NSW e.g. Meal Entertainment allowance - Cap of $2,650. And, the great news is, working within the not-for-profit industry means you may be eligible to salary package and save on a huge range of everyday expenses. The purpose of this statement is to provide guidelines on the authorised use of the Meal Entertainment Card (MEC) and to communicate to employees the audit procedure and sanctions that will apply if the MEC is used by an employee to pay for unauthorised expenses. Exempt entertainment benefits for business, Common entertainment scenarios for business, FBT and entertainment for not-for-profit and government organisations, Tax-exempt body entertainment fringe benefits, Entertainment exemptions for not-for-profit and government organisations, Common entertainment scenarios for income tax exempt bodies, Calculating the taxable value of entertainment-related benefits, Accommodation and location related fringe benefits, Living-away-from-home allowance fringe benefits, Relocation expenses fringe benefit concessions, Exemptions, concessions and other ways to reduce FBT, Taxi, ride-sourcing and public transport exemptions, Contributions to approved worker entitlement funds, FBT concessions for not-for-profit organisations, Overview: FBT concessions for not-for-profits, FBT and not-for-profit organisations that provide care, FBT registration, lodgment, payment and reporting, Reporting exclusion for pooled or shared cars, Reporting exclusion for entertainment-related benefits, FBT administration in government organisations, How FBT operates for government employers, Effective FBT administration by government organisations, Establish and maintain effective FBT controls, Review the effectiveness of FBT administration, Nominating state or territory bodies as FBT employers, Effect of nominating a body as an FBT employer, FBT exemption for fly-in-fly-out arrangements, Benefits provided by associates and third parties, FBT guide: 14.12 Taxable value of recreational entertainment, FBT guide: 14.8 How to calculate the taxable value of a meal entertainment fringe benefit, Aboriginal and Torres Strait Islander people. A package where food or drink is included but is not the primary purpose, e.g. Examples of expenses that are not likely to be meal entertainment, 4. Not For Profit Salary Packaging | Smartsalary The Fair Work CommissionExternal Link regulates employment agreements and conditions. food and drink provided to employees on your business premises, you must use if for all meal entertainment you provide during the FBT year, you must make your choice no later than the day your FBT return is due (or, if you don't have to lodge, by 21May). trip to Gold Coast. is likely to place greater value on the benefit than its cost to the employer. Non-food related purchases for self-catering. Theyre the principles that guide how we create our teams, choose our leaders and build a company thats the right fit for everybody.