iQOUNT Advisors and Accountants News Flash | Barbecue employer and social charges

If an employer organizes a barbecue for its employees, this can have consequences for social charges. The tax and customs administration elaborates two examples in a directive: the barbecue in the workplace and the barbecue in an outdoor place.

An employer organizes a barbecue for his employees. Employee partners are also invited. A total of 60 people come

The employer bears the following costs:

Barbecue and drinks: €1,500
Performing artist: €1,200
Amount: €2,700

Barbecue in the workplace
If barbecuing takes place in the workplace, the following classification applies to the components of the barbeque:
Beverages provided: zero-rated (zero recovery)
Performance: untaxed (zero rating)
Meals offered: €3.35 per employee or partner of the employee

The employer can choose to add €3.35 to the employee’s salary. If the employee brings his partner, the employer must include €3.35 x 2 = €6.70 in the employee’s salary.

The employer may also choose to designate the salary as a final drawdown salary for the work-related cost scheme and include it in the discretionary margin. There is no specific exemption. In total, the employer can designate the following amount: €3.35 x 60 people = €201. If the free space is exceeded, the employer pays a final levy of 80%.

Barbecue outside
If the barbecue is in a remote location, the following classification applies to the components of the barbecue:
Drinks and meals (€1,500: 60): €25 per employee or partner of the employee)
Performance (€1,200: 60): €20 per employee or partner of the employee
Total: €45 per employee or partner of the employee

The employer can choose to count €45 as part of the employee’s salary. If the employee takes his partner with him, the employer must add €45 x 2 = €90 to the employee’s salary.

The employer may also choose to designate the salary as a final drawdown salary for the work-related cost scheme and include it in the discretionary margin. There is no specific exemption. In total, the employer must indicate the total cost of €2,700). If the free space is exceeded, the employer pays a final levy of 80%.

Tip: A barbecue at the workplace means less social charges than a barbecue outside. The free space in the labor cost regime is, among other things, intended to smooth out such differences. But then you have to apply this arrangement correctly. We are happy to advise you.

Source: Portal of accounting publishers