What is a cash allowance?
Cash fee is the assigned amount of money that employers give employees to cover business expenses such as meals, travel costs and office supplies. Cash contributions are easier for accounting than the collection of income and payment of small or frequent expenditure. Employees usually prefer cash contributions, because they do not expect any payment for payment and it is more practical to pay for food and taxis with cash rather than a company credit card.
Most companies keep a small amount of cash for cash posts, even if they do not buy regularly. It can be used to pay for work lunch, taxis houses after late meetings or other random expenditures such as bumpers for printers. An employee who regularly travels for his work may have a fixed amount of cash assigned to food that can accompany the mileage for his car. If an employee prefers to have a more expensive food must payIT difference from his nebor own funds. Likewise, if an employee prefers lighter food, this difference may say.
The fixed nature of the cash allowance facilitates accounting. The amount is offered in advance, so it can be immediately entered into books. No income is required for documentation because it is a privilege of employee whether or not to spend the money. This reduces paperwork and volatility because the employee cannot overcome the budget with cash allowances, thus reducing general expenses. Usually, the offer of cash is appreciated by employees because it can strengthen morale and help verify the value of the employee.
cash allowance is considered to be one of the benefits of jobs that require many long hours and travel. Employees enjoy cash comfort, such as reducing the complexity of the invitation of clients to lunch. Likewise, most employees prefer not to spend their own money onbusiness expenditure or their time of persecution of small compensation. Small companies that do not have many storage space can use cash allowances so that employees can buy office supplies if necessary, which can actually add over the months.
Employees pay taxes on cash contributions as well as other forms of income. In some countries they can be deductible as business expenses. The capital costs can be used, which is depreciation from the original value of the purchase, depending on what was purchased with cash. Other countries allow a religious group to pay for one or more members of a member with cash and deduct this value as a parish allowance.