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2018 Tax Law Change Regarding Employee Meals

brad_randall

Well-known member
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
Meals for convenience of employer – 50% deductible
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.


  • []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.

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??
 
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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
 
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