Calculating Meal Reimbursement
Meal reimbursement (MEALREIM) is a nontaxable meal expense. You can set the maximum claiming limit for every claim.
The calculation rule is Amount:
Amount is established at the payee level using positive input.
While meal reimbursement (MEALREIM) has no minimum amount limit, it does have a maximum limit of 100 HKD per claim. Therefore, for every claim, you can reimburse the lower of 100 HKD or the exact expense from the bill to the employee. Each month can have multiple instances of claims. The total amount of monthly claims is paid as part of the monthly salary.
Example
Following is a simple example with one positive input instance of 110 HKD. If an employee is paid 110 HKD, but the maximum earnings limit is 100 HKD, the system pays 100 HKD. If the 110 HKD payment is spread over multiple positive input instances, the system still compares it to the paid sum.
In this case, the system determines whether the accumulated monthly amount exceeds the monthly maximum amount of 100 HKD. The system displays a warning message and pays only 100 HKD, because 110 HKD is greater than 100 HKD.
With multiple positive input (PI) instance paid:
|
PI Instance |
Amount HKD |
Accumulator HKD |
< or > HKD |
Resolve HKD |
|---|---|---|---|---|
|
1 |
40 |
40 |
< 100 |
40 |
|
2 |
40 |
80 |
< 100 |
40 |
|
3 |
40 |
120 |
> 100 |
20 |
While the system pays PI instance 1 and 2, PI instance 3 exceeds the maximum amount by 20 HKD. In this case, the system resolves 20 HKD for PI instance 3.
Depending on the frequency, the maximum amount is converted to the calendar period maximum amount (monthly or annual frequency). For example, if you select a frequency of annual, the process deannualises the maximum amount.
The formula FM MAX AMT determines whether the earning accumulated amount exceeds the maximum. The accumulated amount is used is because the system must calculate the total amount paid through positive input.