I own a small food business in California that provides on-site meals for employees. According to CA law, I am supposed to record $3.70 in meal benefits for each day an employee works more than 5.25 hours. These meal benefits are not supposed to increase wages on the 941 or w2s - only "Subject Wages" on our CA return. The only reason I need to record the meals is to capture SUI/SDI/ETT since they are technically an employee benefit and CA wants to collect taxes on them.
How would I go about setting this wage category up? Meals are basically a non-cash wage - sort of like cash tips. The employees don't receive any money for the meals, they are just there to capture state taxes. I currently have it setup as a "Reimbursement" wage since that category is not subject to any federal taxes and doesn't increase w2/941 wages.
However, I will need to add SUI/SDI/ETT to this wage category. Is that possible? Any suggestions on what to do here? Here is some info from CA on meals...
chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.edd.ca.gov/pdf_pub_ctr/de231e.pdf
