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Writing off employee meals

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COH Manager

Junior Member
What is the name of your state? California

I run a small store, and during our busy season, I buy lunch for all of the employees, about 20 people including our seasonal help. My accountant told me that we can only claim 50% of the meal cost. I was under the impression that as long as we were providing meals for ALL employees, we could write off the entire cost of the meals.
 


LdiJ

Senior Member
What is the name of your state? California

I run a small store, and during our busy season, I buy lunch for all of the employees, about 20 people including our seasonal help. My accountant told me that we can only claim 50% of the meal cost. I was under the impression that as long as we were providing meals for ALL employees, we could write off the entire cost of the meals.
Meals that are legitimately provided for the convenience of the employer can be fully written off. So, for example, if you are providing lunch during the busy season, in order to have the employees on hand and available through their lunch hours (as opposed to them leaving for lunch and being unavailable) then they are fully deductible.

Now, if the meals are a "reward" for how hard they are working during the busy season, they can still be fully deductible to you, if you include the value of the meals as part of the employee's wages and you tax and withhold appropriately.
 

irsos

Member
What is the name of your state? California

I run a small store, and during our busy season, I buy lunch for all of the employees, about 20 people including our seasonal help. My accountant told me that we can only claim 50% of the meal cost. I was under the impression that as long as we were providing meals for ALL employees, we could write off the entire cost of the meals.
If more than half your employees are furnihed meals on premises, then all such meals are deemed to be for your conveniece, and as such, they are fully deductible by you and excluded from income of your employees.
 

COH Manager

Junior Member
where do I find that

Thanks you so much for your responses! Where do I find that info so that I can direct my accountant to it?
 

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