As an organization existing in a highly competitive work environment, it is crucial to engage your workforce with myriad monetary and non-monetary benefits.
Tax deduction being one of the major concerns for employees, it is highly likely that an organization that offers tax benefits through perks goes in the “wish list” of employees.
With the emergence of meal cards, organizations that have been trying to find out ways to save tax of their employees have a great solution. These food cards for employees have come a long way leading to popularity.
From the paper-based coupons which have been in use for long to the electronic ones which are easy to use, they have been a good way to save taxes for employees. So let’s take a look at the benefits for the corporate.
Benefits for Corporates:
The previous paper-based coupons were difficult to manage, but the electronic ones are easy to use.
#1. Paperless and Electronic
With the announcement of RBI’s Draft Master Direction on the issuance and operation of prepaid instruments, it is clear that paper-based meal vouchers cannot be accepted after December 31, 2017. However, the good news is that we now have electronic meal vouchers available through various providers. These electronic meal vouchers can be distributed to all the employees within no time. These vouchers can be offered in the form of magnetic stripe cards, mobile and internet wallets or smart cards. The electronic nature makes them very user-friendly. The ability to use them via a smartphone app makes them even more user-friendly for the employees.
Every corporate is unique and they have their own policies. If you want to define the usage rules in accordance with your company policies, the meal card must support the customization. With the new age meal vouchers, it is now possible to customize your meal vouchers for your requirements.
#3. Tax Saver
You can use these cards to help employees save more taxes. In fact, your employees will be able to save up-to thirty-percent in taxes. For instance, if you give your employees worth INR 2000 of meal vouchers, this amount of INR 2000 is free from taxation. On the other hand, if you give your employees this amount as a part of their salary, they will have to pay tax on this amount depending on their tax slab.
#4. Compliant with RBI and IT norms
The cards are completely compliant with RBI and IT norms. It means you have no legal hassles to deal with. Considering the new RBI policy, you cannot use paper food vouchers beyond December 31, 2017. Electronic cards are totally acceptable and are here to stay for a long time.
#5. Integrate With Company Canteen
They can easily be combined with the company’s restaurant or the cafeteria. It ensures that your employees are able to get the maximum benefit of the card within the company premises. It also saves a lot of time for employees as they don’t have to worry about carrying their lunch and paying at the cafeteria counter on a daily basis.
#6. Widely Accepted
These cards have a wide acceptance. It means your employees can use them in many stores outside the company, besides your cafeteria. These cards can even be used for online transactions at partner sites.
#7. Fewer Logistical Hassles
The use of these cards breaks you free from all the logistical and storage related issues. The paper-based vouchers were difficult to handle and required a rather large office space for storage in cases where the number of employees is huge. Electronic cards are magnet stripe cards that require lesser handling efforts.
So if you are an organization with a high inclination towards workforce benefits, the electronic employee meal vouchers can be of great use to you. They can help your workforce remain motivated given to the tax benefits that your organization allows through these meal cards. You can even run a trial for them before implementing across the organization, so what are you waiting for? Go ahead and get a deal for your employees.