5 ms·

Just because you can, doesn't mean you should.

Scoundreller 8y ago
But then you have to buy your own lunch/ingredients with your own after-tax dollars, instead of your employer’s pre-tax dollars. And good cheese is expensive in N. America.
- deleted 8y ago
  [deleted]
- jjeaff 8y ago
  Actually, as of 2018, food for employee snacks are no longer deductible. So it's post-tax money for the corporations.
  - saghm 8y ago
    It still is money not out of your own pocket, at least
    - jjeaff 8y ago
      Technically yes, but economically, that is part of your compensation and could have been used to pay you more. In the past, there was at least the argument that by providing the services with pre-tax money, it is going a lot farther, so worth the trade off. Now, not as much. But, at least the economies of scale remain. If every individual employee had to hire their own gourmet chef to cook their lunch, then it would obviously cost them more. But my guess is that if you quantified how much some of these benefits cost and allowed employees to take the money instead of the benefit, they would probably take the money.
      - Scoundreller 8y ago
        If the corporation can’t deduct it, does that mean it’s a taxable benefit for the employee? If not, corporate taxes are less than personal (usually), so it still makes sense for the Corp to provide it even if they can’t deduct it. (Assuming they get équivalent pricing to what consumers get (probably false)).
        jjeaff 8y ago
        No, because the argument can still be made that the benefit is a part of doing business or "for the convenience of the employer" which is the criteria used previously on whether provided meals could be a deductible business expense. Which is funny, because on one hand, google pitches to their employees that all these fringe benefits are for the benefit of the employees and to make it a great place to work. But at the same time, they are certifying to the IRS that the real reason that they offer meals on campus is to keep employees there longer and working more. Meals and some other limited fringe benefits can still be provided to employees without putting it on their w2, but the business can't deduct them. And I should clarify, I checked the statute and actually, meals provided to employees at the place of employment are now only 50% deductible and in 2025, they will not be deductible at all.

But then you have to buy your own lunch/ingredients with your own after-tax dollars, instead of your employer’s pre-tax dollars. And good cheese is expensive in N. America.

deleted 8y ago
[deleted]
jjeaff 8y ago
Actually, as of 2018, food for employee snacks are no longer deductible. So it's post-tax money for the corporations.
- saghm 8y ago
  It still is money not out of your own pocket, at least
  - jjeaff 8y ago
    Technically yes, but economically, that is part of your compensation and could have been used to pay you more. In the past, there was at least the argument that by providing the services with pre-tax money, it is going a lot farther, so worth the trade off. Now, not as much. But, at least the economies of scale remain. If every individual employee had to hire their own gourmet chef to cook their lunch, then it would obviously cost them more. But my guess is that if you quantified how much some of these benefits cost and allowed employees to take the money instead of the benefit, they would probably take the money.
    - Scoundreller 8y ago
      If the corporation can’t deduct it, does that mean it’s a taxable benefit for the employee? If not, corporate taxes are less than personal (usually), so it still makes sense for the Corp to provide it even if they can’t deduct it. (Assuming they get équivalent pricing to what consumers get (probably false)).
      - jjeaff 8y ago
        No, because the argument can still be made that the benefit is a part of doing business or "for the convenience of the employer" which is the criteria used previously on whether provided meals could be a deductible business expense. Which is funny, because on one hand, google pitches to their employees that all these fringe benefits are for the benefit of the employees and to make it a great place to work. But at the same time, they are certifying to the IRS that the real reason that they offer meals on campus is to keep employees there longer and working more. Meals and some other limited fringe benefits can still be provided to employees without putting it on their w2, but the business can't deduct them. And I should clarify, I checked the statute and actually, meals provided to employees at the place of employment are now only 50% deductible and in 2025, they will not be deductible at all.