IRS updates rules impacting employee meals and entertainment

With the holiday season upon us, many employers plan to host holiday or year-end parties for their employees. The Tax Cuts and Jobs Act has added a few more wrinkles to how these business meals and entertainment expenses are to be handled from a tax perspective. Some of the rules were unclear, so the IRS […]

Tax reform changes to employee benefits tax breaks: 4 negatives and a positive

The Tax Cuts and Jobs Act (TCJA) includes many changes that affect tax breaks for employee benefits. Among the changes are four negatives and one positive that will impact not only employees but also the businesses providing the benefits. 4 breaks curtailed Beginning with the 2018 tax year, the TCJA reduces or eliminates tax breaks […]

Deductions for employee meals slashed under new tax law

The Tax Cuts and Jobs Act changes the deductibility on food and beverage expenses for employers. Under the new law there is a 50 percent limit for the employer’s expenses of providing food and beverages to employees at an eating facility that qualifies as a de minimis fringe benefit. Before The Tax Cuts and Jobs […]

‘Extender’ bill revives some expired tax provisions

Congress approved this month some last-minute tax law changes to extend some expired provisions into the 2017 tax year. The Bipartisan Budget Act of 2018 extends some tax provisions that expired at the end of 2016. It is commonly referred to as an “extender” bill because it extends expired provisions through the 2017 tax year. […]

How much can I deduct for employee meals?

Many employers furnish meals to their employees as a benefit to working in the restaurant. But, as is often the case, a tax question is at stake: Are these meals fully deductible or are they subject to the 50 percent meals and entertainment limit? The IRS has provided guidance this question. Generally you can only […]