Can employers deduct employee meals? What is a meal with a client? How do you use standard meal allowance? Are overtime meal allowances taxable?
Just about anything employers give their employees as compensation for their work is taxable income for the employee and a deductible business expense for the employer.
Wages or salary , of course , are included as income , but so are many employee fringe benefits such as personal use of a company car, gym memberships, and group. However, this can vary by state. In some cases, the employer gives you the full amount of the allowance after your overtime.
Per-diems are fixed amounts to be used for lodging, meals , and incidental expenses when traveling on official business. Federal per diem rates are set by the General Services Administration (GSA) and are used by all government employees , as well as many private-sector employees who travel for their companies. In determining an employee meal policy for your restaurant, consider the positive aspects of providing the benefit. As mentione when employees are offered free meals , they are more likely to try different dishes and expand their knowledge of the menu.
This, in turn, may lead to better customer service. (more…)