Use for meals that were provided in-kind for the convenience of the employer.
How to setup a Meals earning code
Navigate to: Company Settings > Payroll Setup > Earnings Codes
If the code isn’t already setup on the company, click "Add New Earning Code" in the upper right corner.
In the Roll up Earning box, select “Custom Taxable Fringe”. You should now see this box:
Select "OK"
Rename the earning code and keep the W2 box Type at the following setting:
Click "Save" . In the Tax Settings box, click "Add Tax Setting" . For Federal taxes, Meals are exempt from FUTA, FIT, and FICA. Code accordingly:
Each state’s income tax, local tax, and worker’s compensation taxation varies – get the taxability from the client.
How to input in payroll
Because Meals are fully exempt, the amount can be entered separately on a manual check.