• Seasonal Questions & Answers

    | Categories: Allowances , New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Overtime Meal Allowances
    Question : In the lead-up to Christmas the elves are required to put in long working days and to work well into the evening beyond their normal work hours.  As a result, Santa is paying the elves a meal allowance in addition to their normal wages and overtime pay.
    Will the meal allowances be taxable income to the elves?
    Answer :  The starting position is that any monetary benefit employees receive in connection with the performance of their employment will form part of their income. However, an amount that an employer pays to an employee for a meal while that employee is working overtime may be exempt income of the employee.

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