Q: I have a client whose employees work more than 8 hours a day, as they are truck drivers. The client provides them with a daily meal allowance; however, she wants to structure it so that if they do not work at least half a day, they are not entitled to the allowance.

My question is: Can it be set up this way? If not, how should it be treated, and what would the proper setup look like?

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A: All allowances are based on an agreed term, so it is based on what was agreed, then tax rules are applied.

However, if the change is already in place and part of a written or verbal agreement, the employee will need to be fully consulted, and a new agreement sought and agreed upon to change to what the client wants to do.  Even without an agreement the action has sent a precedent.