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It's taxable in the US as well. There have been occasional attempts to enforce the law - IRS recently made noises in 2014/15. The challenge is that it's taxab
by ghein 8y ago
It's taxable in the US as well.
There have been occasional attempts to enforce the law - IRS recently made noises in 2014/15.
The challenge is that it's taxable to the employees but hard to track and prove, it's for relatively little money per employee, and the firms argue that it's for their benefit to secure information/improve productivity/build cohesion...
Google can and will fight far harder than the IRS is willing to on this issue and the IRS isn't entirely sure that they'd win. The IRS can spend resources in places to make a much higher return with an almost certain chance of success.
So no effective taxes on meals.
To make it happen in your company, follow the Google and Uber strategy. Just do it and deal with the law later.
Your ability to pay any fines later may be different from Google's and the chance that one of your employees will call the tax office on you may be dramatically higher because Germany.
- deleted 8y ago[deleted]
- gnopgnip 8y agoIt is not taxable if it is for the employers benefit
- nashashmi 8y agoFree meals are considered income? But free benefits are not considered income? I don't see the difference between the two.
- ghein 8y agoMost benefits are taxable at least in part. Health is the most tax advantaged, and then retirement. Comes from WWII era rules aimed to prevent wage increases.
- s73v3r_ 8y agoHow is it hard to prove? These companies offering free food is very well known. It's not like the food is in a back alley behind a heavy door you have to knock on and say, "Walt sent me".
- jobigoud 8y agoI think he means it's hard to prove at an individual employee level, whether they get their food from here or not.