2018 Tax Law Change Regarding Employee Meals

Under the new tax law, “Meals provided for the convenience of the employer” are only 50% deductible beginning this year. After 2025 they will be non-deductible.

Here is a website that has some more information: https://www.schencksc.com/education-center/articles/2018-meals-and-entertainment-deductions

[SIZE=4]Meals for convenience of employer – 50% deductible[/SIZE]
This is a separate account because these become 0% deductible in 2025 and this prevents having to change accounting and expense reporting systems in the future.

[LIST]
[]Meals served to employees who are required to staff their positions during breakfast, lunch, and/or dinner times; meals served to employees at in-office cafeterias;
[
]Food and meal costs for employees who are required to live on premises for the convenience of the employer.
[/LIST]

Was anyone offering a free meal for employees during their shifts? Does anyone know if such meals (or the 50% portion of) are now a taxable benefit for the employee too? How the heck did I miss this until now??

In NY you have to provide a “healthy meal” :rolleyes:

So if we take our employees out to dinner, we can only deduct 50% of it? What about an event like a Christmas party?

Looks like that’s still 100%:

Company has a holiday party for employees and customers. 100% deductible for portion allocated to employees

2018
50% deductible for portion allocated to customers
100% deductible for portion allocated to employees

Cost of Goods Sold is still 100% deductible. What employee meals?

Looks 100% deductible to me too.