If you say Yes, then Sage 50 will set up payroll fields to record employee meals and tips. By default, these fields are not calculated but are for reporting purposes(we call these Memo fields). They can be used in other payroll formula calculations if you have subscribed to a Sage Business Care plan (Gold or Platinum) or a monthly subscription.
Note: If the Meals and Tips option is disabled, it is because you have used meals or tips on at least one payroll transaction. Once used, meals and tips cannot be turned off or deleted.
If you are unsure about recording employee meals and tips, you may want to consult with your accountant.
For more about business expenses and regulations, see the following publications at www.irs.gov:
- Publication 15 (Circular E) Employer's Tax Guide
- Publication 463, Travel, Entertainment, Gift, and Car Expenses
- Tax Topic 511, Business travel expenses
- Publication 1542, Per Diem Rates
- Publication 1244, Employee's Daily Record of Tips and Report to Employer